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Mesaba to take another hit?

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justmeinmsp

Well-known member
Joined
Apr 11, 2003
Posts
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http://biz.yahoo.com/bw/031007/75880_1.html

Mesaba Aviation Agrees to Extend Termination Notice Period for RJ85 Agreement
Tuesday October 7, 7:30 pm ET

MINNEAPOLIS & ST. PAUL, Minn.--(BUSINESS WIRE)--Oct. 7, 2003--Mesaba Aviation, Inc., a subsidiary company of MAIR Holdings, Inc. (Nasdaq:MAIR - News), announced today that Northwest Airlines is considering exercising its right to terminate the Avro RJ85 agreement under which Mesaba leases and operates 36 jet aircraft. The agreement governing Mesaba's Saab SF340 turbo-prop aircraft remains intact.

Under the terms of the 1996 Regional Jet Services Agreement between Northwest and Mesaba, Northwest may - at its sole discretion - terminate the agreement by providing notice to Mesaba on or before Oct. 28, 2003. At Mesaba's request, the two companies have agreed to extend the termination notice period to Dec. 15, 2003, so that Northwest can continue a review of the operating economics of the RJ85 fleet. If Northwest provides notice of early termination, the Regional Jet Services Agreement would terminate as of April 25, 2004.

Northwest and Mesaba have also agreed to remove five of the 36 Avro RJ85 aircraft from service. Three of the Avros will be removed from service on or about Dec. 1, 2003 and two more on or about Jan. 1, 2004.

"We are very concerned about the potential implication of an early termination," said John Spanjers, Mesaba's president and chief operating officer. "While Northwest is finishing its analysis, Mesaba will be developing plans to address the potential permanent removal of the RJ85 fleet from Mesaba's operations. Mesaba has a history of excellent performance for Northwest, and we hope this will provide the basis for a continued prosperous relationship."

Mesaba Aviation, Inc., d/b/a Mesaba Airlines, operates as a Northwest Jet Airlink and Northwest Airlink partner under service agreements with Northwest Airlines. Currently, Mesaba Aviation serves 109 cities in 28 states and Canada from Northwest's and Mesaba Aviation's three major hubs: Detroit, Minneapolis/St. Paul, and Memphis. Mesaba Aviation operates an advanced fleet of 104 regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85 and the 30-34 passenger Saab SF340.

MAIR Holdings, Inc. is traded under the symbol MAIR on the NASDAQ National Market.

More information about Mesaba Airlines is available on the Internet at: http://www.mesaba.com.
 
I smell a furlough in my future...
Or bargaining tactic?
Anyone?
 
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They can take the Avro back and send all the CRJ's over to Pinnacle, and even shut the place down - before we take any sort of pay-cuts in my opinion.. it's all a bluff...

BRING IT ON !!!
 
Have the NWA pilots started talks on scope in their negotiations? Mabye Management is going to use the Avros going away as a carrot for them....

Who knows...

I hope all the best for you guys as Mesaba....
 
It doesnt matter what NWA is doing with NWA pilots or Pinnacle pilots or even Big Sky pilots... most of the pilot group over here is just sick and tired of the games and even the criminal back-door shell games that are going on. Why is this any different than Enron and WorldComm? There is so much co-mingling of funds and conflict of interest it would make most peoples head spin. And ALPA, where do they come in? Hopefully our MEC will tell the company to shove this one up their ass and stand their ground and call the bluff.

As for now most pilots, or at least the ones I talk to say burn it down. Of course we've been saying that all along.

100% Unified..
 
T-Gates said:
Have the NWA pilots started talks on scope in their negotiations? Mabye Management is going to use the Avros going away as a carrot for them....

Who knows...

I hope all the best for you guys as Mesaba....

No, we haven't discussed scope in the negotiations. I don't see them using getting rid of Avros to get, what...another big RJ...or something bigger? Why would we agree to this? I see it as a negotiating ploy by mgt, but they were already planning on parking or giving back these things anyway. They'll replace them with combination of Dc9s, and CRJs. Mesaba guys should have seen this coming...although, I don't know what they could have done about it.
 
This is one of the problems with the regional airlines,many are just contract carriers and when the contract is up no more work.Its happened before and will again.When the larger airline doesn't need the lift they don't renew the contract or use an early termination clause.In this case its sad because I know the Mesaba people to be first class.
 
The question is where are the Avro's going to go. According to Paul Foley back in 2002, he said that Northwest has a lease on the avro's until 2015? Not sure if the exact year, but it was around then. I know they can get out of the lease early, but that will take money. Smells like a negotiation tactic to me.
 
DISCLAIMER---I KNOW NOTHING--JUST TALKING OUT LOUD

(that should keep the namecalling down)

Mainline has coveted those a/c from day 1. There were rumors pre-9/11 of stripping out f/c and flying 85 coach seats, which would have to be done by mainline.

Who really knows what has been opened (scope, et.al.) by our MEC and mgmt? I have learned over the years not to be too shocked.

The point about the contract carrier is right on! This is why I chuckled about wholly-owned, single-codeshare IPO's. PCL is effectively nothing more than a crew leasing company. Why would I as an investor want to buy that? If I did, I sure wouldn't pay for it like an "real" airline! Possibly why Coex closed below its initial offering. I may not have a B-school degree, but I do have a degree....and i don't think I am alone.
 

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