Minnesotans Mull New Airline To Ensure R

[storminpilot]

http://biz.yahoo.com/djus/040102/1559000264_1.html

Dow Jones Business News -- Minnesotans Mull New Airline To Ensure Regional Service

Friday January 2, 3:59 pm ET
By Elizabeth Souder, Of DOW JONES NEWSWIRES


NEW YORK (Dow Jones)--Airport managers and other community leaders in northern Minnesota are considering starting a new airline to ensure regional air service, which is jeopardized by threats of a strike among pilots that fly on behalf of Northwest Airlines Corp. (NasdaqNM:NWAC - News) .

Air service in Minnesota is dominated by Northwest Airlines, and state officials have long considered ways to increase competition and air service. But the situation could become severe if pilots that fly for Mair Holdings Inc. (NasdaqNM:MAIR - News)'s Mesaba Airlines go on strike, possibly wiping out service entirely to some Minnesota cities.

Regional carrier Mesaba operates flights to 112 airports on behalf of Northwest Airlines. And for 20 towns in the Midwest, including Minnesota's St. Cloud, Brainerd and Hibbing, Mesaba is the only provider of commercial air service. A pilot strike, which could begin Jan. 10, may wipe out that service, forcing travelers to drive hours to Minneapolis to board planes.

David Danielson, the airport manager for Chisholm-Hibbing Municipal Airport in northeast Minnesota, said he and other local people have a plan, and the necessary financing, to build a new airline for the region.

He wouldn't offer details of the plan, nor a timetable for when it might be in place, but said people in the area have been frustrated that Northwest has cut back on the number of daily flights. At one time, Hibbing airport served about 20,000 people a year. Now, because Northwest has cut frequency to the city, the airport serves around 10,000 people a year, Danielson said.

"We've got overbookings very, very often," he said, adding there's plenty of demand for more flights. "We just know that we have to get better air service for Minnesota or there won't be any business development."

Northwest spokeswoman Mary Stanik said the airline has contingency plans in case of a strike at Mesaba, but Northwest hasn't guaranteed it will continue service to all of the cities Mesaba serves.

The pilots for the regional partner are threatening to strike at the end of a 30-day cooling off period Jan. 9 if they can't agree on a new contract. Negotiations have been going on for more than two years.

Northwest won't give details of the contingency plan, but some experts speculate Northwest's regional subsidiary Pinnacle Airlines Corp. (NasdaqNMNCL - News) could pick up some of the flights.

Northwest technically owns the aircraft that Mesaba flies, Mesaba spokesman Dave Jackson said. Mesaba's plan, if the pilots strike, is to park those planes. Northwest has the option to terminate the contract with Mesaba if the pilots strike.

Harold Vanleeuwen, airport manager for Bemidji-Beltrami County airport in Bemidji, Minn., said if Mesaba pilots walk out, it could take a few months for Northwest to replace that service in some cities. And a few towns are worried air service may disappear altogether, he said.

Vanleeuwen said in the past, luring airlines to the area to compete against Northwest has been difficult, as Northwest has been able to offer competitive fares when facing rivals.

-By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; [email protected]

 

[FLB717]

Pardon me while I wipe this B.S off my shoe.

Bump

 

[Ty Webb]

I think this would be struck work.

I did find the idea of the Hibbing Airport Authority getting into the airline business very funny, though. It would be great fodder for a book.

 

[fyeo777]

My prediction:


Strike happens, and shortly after, NWA Cancels contract for regional services from Mesaba and Skywest is contracted to fly for NWA with EMB-120's. Not sure of the struck work issues if Mesaba's contract is cancelled but look for something around these lines to happen.

Good luck to all Mesaba pilots.

 

[flap operator]

NWA, per the Airlink services agreements does have the right to terminate the agreements if:

1- Either party is apart of a bankruptcy proceeding or is divested of a substantial part of its assets

2- In the event of a breach of a non-monetary provision which remains uncured for a period of more than 30 days after the receipt of written notification of such default, the non-defaulting party may terminate the agreement.

3- In the event of certain lease and other performance defaults; change in control events; revocation or failure to obtain DOT certification, failure to elect a CEO of the company and Mesaba reasonably acceptable to NW; or if more that 50% of the a/c subject to the agreement are not operated for more than 7 consecutive days or 25% of such a/c are not operated for more than 21 consecutive daus, other than as a result of the FAA grounding a specific aircraft type for all carriers.

In the jet agreement all of the above apply except paragraph 3 which reads a bit differently.

3 - NW may terminate the jet agreement on as of the 7th anniversary of the effective date of the first jet a/c lease if NW gives a termination notice to Mesaba not less than 180 days nor more than 365 days prior to such seventh anniversary, April 25, 2004. NW may also terminate the jet agreement if more than 25% of the a/c subject to the agreement are not operated for more than seven consecutive days, or if there is a strike, cessation or interruption of work involving Mesaba pilots, FA's or mechanics providing jet service.


It will have to be a looooooong strike for NWA to cover our flying with another company. But, NWA is hard core and never ceases to surprise in its games. Funny though, wiping their own investment that is profitable as well as a nice revenue producing company out of the picture is a great way to do business.

I think the greatest part of the article is where they say Pinnacle will cover our flying. They're in for a surprise... right 9E guys and girls?



FO


7 days, 5 hours, 5 minutes, 54 seconds!!! and counting...

 

[trip]

Why would they contract with SKYW, when they could do the same thing with Big Sky. and they already own them!!

 

[flap operator]

Maybe because Big Sky has a handful of planes and pilots - and SKYW has more. I dunno... 844 pilots and over 100 airplans with service to over 100 cities is a large amount to cover in a short time. Wouldn't it just make some freaking sense to just SETTLE???


FO

 

[SA227driver]

Why would they contract with SKYW, when they could do the same thing with Big Sky. and they already own them!!

Maybe because Big Sky pilots won't fly struck work. I quote from our often criticized contract "no pilot will be required to perform the struck work of pilots from another carrier who are engaged in a lawful strike under the Railway Labor Act."

One thing that management did when they furloughed so many and made everyone work more (85-90 hours/mo.) is unify the pilot group against management. Mesaba pilots can be assured that you have our full support and we won't fly your routes. Besides, if management were to try to play hardball, i.e. fireings, management flying, threats of blackballing, etc., our airplanes are such pieces of cr@p that they could be written up for something frivilous and grounded if ever sent east of BIS.

Stay strong and you will all get what you have deserved for years.

 

[JJJ]

Pinnacle Airlines could pick up some of the flights.

"could" is the operative word.

Could we? Yeah, we could.

Will mgmt want us to? Probably.

Will the pilots do it? HELL NO!

 

[skywestdrvr]

Skywest isn't going to fly struck work either. We didn't during the Comair strike and we won't during the Mesaba strike.

 

[cl-65link]

9E is not going to fly to RHI,INL, etc. The runways are marginal in terms of length, especially this time of year, and we have(as of December) only 2 spare aircraft. New deliveries are already earmarked for expansion, not flying to XJ cities.

 

[DTWFO]

If NWA's plan of attack is to have Pinnacle fly Mesaba's routes they're in for a BIG suprise!!!

 

[Wanderer]

I don't think media types will understand "struck" flying in relation to contingency plans.

As for contingency plans....what I have heard is that passengers will be rebooked out of "close" airports with NW or Pinnacle flights - and NOT provided ground transport (busing, etc.). That may work for some of our cities (within two or so hours). Some passengers will get screwed.

 

[fly4ever]

SA227,

It is good to hear those words from a Big Sky pilot (if that's who you are). Unfortunately, you have learned the hard way what this company is capable of at this point in it's history. We appreciate the support in words and in action.

To everyone, whether you are union or not, if you want something better out of this profession now is the time to back a pilot group that is trying to draw the line and stop the downward spiral.

The word is going out that SAAB of North America or Mesaba by another name is looking for contract saab pilots to reposition planes to maintenance bases. PLEASE, don't fly our Saabs! Let them sit wherever they end up.

Once again, thanks for all the support.

 

[snine3departure]

It is up to Mesaba and Coex to set the standard right now for the regionals and it is the job of the rest of us to support there efforts. Good luck to both pilot groups, you have my support

 

[rumorhasit]

okay here we go...another airline trying to $crew its people....We need magnt. to realize they are not running a "regional" airline any more. The pilots are flying with the mesa and xjt alot long flights for the "big guys"...the world has changed and they cannot (mangt.) realize pilots are no longer going to take erj pay flying 737 pax....I say strike if needed ....maybe mangt will get the picture

 

[Wanderer]

yes....we are now flying 737 passengers...I think the WHOLE industry needs to wake up and realize things are different...not just the regionals management. I think it is the MAJORS that need to wake up and realize that they will not be able to glum off of the regionals anymore. This industry has not seen the end to its turmoils. The "succesful" regionals have been succesful due to outdated labor and majors contracts.

This strike is entering new ground in the airline industry...someone is going to lose big...whether it be the pilot group at first, or the whole company on the back end. And now fault to the pilots or to the management...but more to the crooked industry on a whole (the majors and the games they play).

 

[dashtrash]

I will never forgive the Freedom Air Fvcks for the box they have put us all in. The Mesa "pilots" were no help either.

Stay strong MESABA & COEX! You have a chance to hold the line Comair, Horizon, and Chataq. pilots drew.

 

[Dave Benjamin]

Maybe those "airport managers and community leaders" need to be educated on the issues. Perhaps then instead of cooking up pie-in-the-sky ideas of another airline they could lobby Mesaba management to deal fairly and equitably with their employees. Just a thought.

 

[Draginass]

Maybe those "airport managers and community leaders" need to be educated on the issues.

I hear this the buzzphrase "education" used alot where it is not appropriate. The politicians and airports managers don't need educating because regardless of the circumstances, they don't give a rats *ss about how Mesaba compensates its employees. All they care about is getting service to their airport CHEAP and OFTEN, and preferably subsidised by someone else. I have no doubt that they'd think migrate labor from eastern europe would be just fine flying Mesaba aircraft, as long as it fit their purposes.

Don't kid yourself, NOBODY including the politicians and public cares about airline workers. If there's a strike, who do you think is going to take the blame? . . . . it sure isn't the company. It's going to be those greedy pilots wanting to make more than MSP bus drivers do.

Hang tough Mesaba pilots. You can count on most of yourselves, but not the public or politicians, Democrats or Republicans, nor your supposed brethern in the industry. It's up to you alone.

At least IMHO.

 

[AeroDMB]

2nd time I heard this idea...first time published...

...let's just say there will be some "airline expertise" from experienced individuals behind the plan...I know no more.

 

[ex-dc9drvr]

I think the greatest part of the article is where they say Pinnacle will cover our flying. They're in for a surprise... right 9E guys and girls?

The Pinnacle (9E) boys and girls - WILL NOT FLY MESABA STRUCK WORK. PERIOD!!!!! Enough said

 

[sydeseet]

I suppose that the airport managers et al are going to walk into Wal Mart and pick up an operating certificate; last I checked they were in household goods next to dust-mops. Then they need to swing by Barnes and Noble and pick up a copy of "Airline Certification for Dummies" (authored by Frank Lorenzo BTW) which has a new CD-ROM guide to proving runs. I guess they can lease the aircraft from NWA/Mesaba but wouldn't it be tacky to keep the same red paint? If you're going to start your own airline are you not entitled to paint the aircraft any way you like???

I think they can do it. It beats lobbying their business associate (XJ) to stand straight and do the right thing.

There is shoveling horses*!t and then there is using a bulldozer. I think I smell diesel exhaust!!!!!!!!!!

 

[Dave Benjamin]

I'm shooting from the hip because I don't know the Mesaba service area that well but I'll go out on a limb and say that there probably isn't enough traffic to support a competing "regional" airline. Also any new airline would need a codeshare to seamlessly link pasengers from those small towns like Hibbard to the aviation infrastructure. So those politicians and airport managers are pretty much nuts. Still I think that someone, preferably from the Mesaba MEC should attempt some dialogue with those people. It wouldn't hurt. I agree that they probably don't care much about the pilots however if they were convinced that the best (and only) way to sustain service to the smaller MN communities was a peaceful resolution to the current contract dispute they might be inclined to support the pilots.
I wish the Mesaba pilots the best and hope that a last minute deal come together granting them competive compensation and work rules.