NWA forgets to pay XJ

[Waylon]

One of the news channels was reporting that one of the debts NWA didn't pay was Mesaba. Do you think it was a honest mistake? Maybe accounting just forgot. How do you think this will play out for us?

 

[mynameisjim]

The delayed payments included $19 million owed to Northwest regional partner Mesaba Aviation Inc., which gets its aircraft and schedule from Northwest and operates under the Northwest Airlink brand. A filing by Mesaba parent MAIR Holdings, Inc. said Northwest has until Sept. 20 to make the payment or "Mesaba may exercise available remedies against Northwest."

Northwest said it missed other payments totaling $23 million related to aircraft financing that were due Saturday through Monday. It said the terms of those agreements give it grace periods of five to 10 business days before the payments are in default. Northwest said it has not yet decided whether to make the payments before the deadlines. Northwest is analyzing its debt, lease and other obligations to decide which ones to try to restructure, it said. The payments that were missed are ones the company would try to restructure.

http://biz.yahoo.com/ap/050914/airlines_crisis.html?.v=8

 

[Mesabi Miner]

Smoke and Mirrors

With NWA about ready to declare bankruptcy, they needed some ammo to use with the judge. The notice that XJ served to NWA about the default was just a pre-arranged scheme so NWA could say, "See Mr Judge, we really are broke! We can't pay our regional." I wouldn't be surprised at all if this was completely pre-planned with our company. I can't see this thing being of much worry. It doesn't make sense with the arrival of the CRJ's in full swing.

MM

 

[Workin'Stiff]

Yeah, I wouldn't worry 'bout it either. This is all a plan that has been well laid out for NW. By missing strategic payments, they retain needed cash for the bankruptcy proceedings and it will also position them for the impending bankruptcy filing. Spanjers and Steenland know exactly what's going on and this was just symbolic posturing by XJ...

 

[Newman55]

The delayed payments included $19 million owed to Northwest regional partner Mesaba Aviation Inc., which gets its aircraft and schedule from Northwest and operates under the Northwest Airlink brand. A filing by Mesaba parent MAIR Holdings, Inc. said Northwest has until Sept. 20 to make the payment or "Mesaba may exercise available remedies against Northwest."

Northwest said it missed other payments totaling $23 million related to aircraft financing that were due Saturday through Monday. It said the terms of those agreements give it grace periods of five to 10 business days before the payments are in default. Northwest said it has not yet decided whether to make the payments before the deadlines. Northwest is analyzing its debt, lease and other obligations to decide which ones to try to restructure, it said. The payments that were missed are ones the company would try to restructure.

http://biz.yahoo.com/ap/050914/airlines_crisis.html?.v=8

WAAAAAAAAAAAAAAAAAAA WAAAAAAAAAAAAAAA we are missing our fee per departure guaranteed profits WAAAAAAAAAAAAAAAAAAAAAAAA WAAAAAAAAAAAAAAAA. Wake up guys. The next thing to go is those generous fee per departures then what do you do next when all the regionals actually have to base their buisness on load factor instead of collecting their fees no matter how full or empty the plane is. That is what I see coming next is the elimination of the fee for departure in bankruptcy court. Do you really think the majors are gonna keep loosing money and keep basically gift wrapping a profit every quarter? I see the next contracts as incentive based and if the plane is empty you LOSE money on that flight, if its full you make money. If its at the break even load factor you break even. Thats part of the problem right there the majors are just throwing profits at all the regionals while they loose money.

 

[Workin'Stiff]

That requires a complete overhaul of the agreement. Right now, NW marketing sells all of our seats. NW tells us exactly where and when to go. We have no say in that. Hence the pay for departure. How can we fill the seats if we have absolutely no opportunity in the marketing and sales of those seats. Good idea, however, there's a lot more to it than just that.

 

[wheelsup]

Thats part of the problem right there the majors are just throwing profits at all the regionals while they loose money.

So what's stopping the 'majors' from owning their associated regionals, and getting 'all the profits'? Delta tried that, and well, you know how that's turning out.

NWA spends coutless $$ on training scab F/A's and mech's, and that's not wasted money. But when they outsource their feeder service to SAVE money, it's wasted profit. You must be in management!

~wheelsup

 

[spitfire1500]

WAAAAAAAAAAAAAAAAAAA WAAAAAAAAAAAAAAA we are missing our fee per departure guaranteed profits WAAAAAAAAAAAAAAAAAAAAAAAA WAAAAAAAAAAAAAAAA. Wake up guys. The next thing to go is those generous fee per departures then what do you do next when all the regionals actually have to base their buisness on load factor instead of collecting their fees no matter how full or empty the plane is. That is what I see coming next is the elimination of the fee for departure in bankruptcy court. Do you really think the majors are gonna keep loosing money and keep basically gift wrapping a profit every quarter? I see the next contracts as incentive based and if the plane is empty you LOSE money on that flight, if its full you make money. If its at the break even load factor you break even. Thats part of the problem right there the majors are just throwing profits at all the regionals while they loose money.

Well if the fee for departure goes away and the regionals quit flying for NWA then that means they pay for their own training, insurance and maintenance and leases on smaller RJ's. It is far cheaper to pay fee for departure...so far U and United (both in Bankruptcy) still pay Fee for Dep. By the way those fee for dep are not that overly generous.

 

[Dodge]

Who Cares

So what that NW missed a payment to Mesaba. That is exactly the same as if I forgot to go to the ATM and get 20 bucks for food today, so I decided to put lunch on the credit card. I must now seek remedies if I don't pay myself that 20 dollars. Seek other remedies.....yeah right, Spanjers.

It's all coming out of the same money pot. I can't believe that they actually issue press releases saying this crap. It's like they've had no business training whatsoever. Wait....that's right, they work in airline management. It doesn't take a genious to figure out why no airline can be solvent. Look straight to the top.

 

[lancair360]

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