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Minnesotans mull new airline to ensure regional service
Elizabeth Souder, Dow Jones Newswires
Published January 3, 2004 AIRL03
NEW YORK -- 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.
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.'s Mesaba Airlines go on strike, possibly wiping out service entirely to some Minnesota cities.
Mesaba, a regional carrier, operates flights to 112 airports on behalf of Northwest Airlines. And for 20 towns in the Midwest - including St. Cloud, Brainerd and Hibbing in Minnesota - 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 could pick up some of the flights.
The union for Northwest and Mesaba pilots has told Northwest management that Northwest pilots will not operate flights on the Mesaba routes if there is a strike.
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.
Elizabeth Souder, Dow Jones Newswires
Published January 3, 2004 AIRL03
NEW YORK -- 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.
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.'s Mesaba Airlines go on strike, possibly wiping out service entirely to some Minnesota cities.
Mesaba, a regional carrier, operates flights to 112 airports on behalf of Northwest Airlines. And for 20 towns in the Midwest - including St. Cloud, Brainerd and Hibbing in Minnesota - 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 could pick up some of the flights.
The union for Northwest and Mesaba pilots has told Northwest management that Northwest pilots will not operate flights on the Mesaba routes if there is a strike.
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.
