NWA forgets to pay XJ

Waylon

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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

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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

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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

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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...
 
N

Newman55

mynameisjim said:
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

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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

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Newman55 said:
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

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Newman55 said:
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

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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.
 

Crizz

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lancair360 said:
Mesaba took the bait and gave NWA contract concessions for new CRJ aircraft that will probably never arrive now.

Hold on there Baba-Louie - I have personally seen N601XJ and N602XJ sitting out in front of the XJ hanger in MSP. They are already starting to arrive.
 

General Lee

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If NW goes to bankruptcy, Mesaba will probably miss out on more or at least partial payments. Look at what United did to all of their regionals after they went to court. If "Mama" is hurting, most of the others will feel some pain too. Many of the regionals out there feel "insulated" from high gas prices, which is ridiculous. Of course the regionals are profitable, they don't pay for the difference in high gas prices. (According to Ron Reber, a SkyWest executive) Good for them!!?

And, doesn't NW own most of the Mesaba airplanes? I think they could decide on what they want to do with Mesaba and their future.


Bye Bye--General Lee
 

Mesabi Miner

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Well, I just hope that when XJ starts to feel the pain of non-payment from "Mama NWA" that they remember that the money flow from Mesaba Aviation to MAIR Holdings is NOT a one-way street. It's about time PF and some of the investors channel a little of MAIR's millions back into Aviation.

MM
 
N

Newman55

General Lee said:
If NW goes to bankruptcy, Mesaba will probably miss out on more or at least partial payments. Look at what United did to all of their regionals after they went to court. If "Mama" is hurting, most of the others will feel some pain too. Many of the regionals out there feel "insulated" from high gas prices, which is ridiculous. Of course the regionals are profitable, they don't pay for the difference in high gas prices. (According to Ron Reber, a SkyWest executive) Good for them!!?

And, doesn't NW own most of the Mesaba airplanes? I think they could decide on what they want to do with Mesaba and their future.


Bye Bye--General Lee
The time has come to end this nonsense! The majors need to stop playing santa claus! This is the perfect time to tweak some of these overly generous arraingements. Let the regionals pay their own fuel costs! Let them make money when times are good and maybe not make so much or even lose money when times are bad. That is how the real world is. They have been living in their safe den far too long!
 

Dodge

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Hey Newman55
When NWA lets Mesaba or Pinnacle market their own product I'll agree with you. Until then...........I take whatever I can get.
 
N

Newman55

Dodge said:
Hey Newman55
When NWA lets Mesaba or Pinnacle market their own product I'll agree with you. Until then...........I take whatever I can get.
Hey I dont argue with you on that one. If I had guaranteed money I would take it in a hearbeat too. Im just saying things should be restructured a little bit is all. The agreement worked fine when oil was in the $20s however those days are gone. The time has come to change things a little bit. I want all airlines to survive this mess.
 

fly4ever

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enough
I believe the toolbox is full.

(based on comments by newman and lancair)

I previously added mcnugget to the toolbox and have since removed him. He doesn't meet the threshold of "tool" like the other dense objects.

My apologies to mcnugget.
 
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