NWA Reaches Deal to Buy Mesaba

[MSNFlier]

Northwest Reaches Deal to Buy Feeder Airline

January 5, 2007

By THE ASSOCIATED PRESS

MINNEAPOLIS, Jan. 4 (AP) — Northwest Airlines said Thursday that it had reached an agreement to buy the regional feeder airline Mesaba, although it was not clear that Mesaba’s parent company would accept it. Both airlines are in bankruptcy protection.

“An agreement has been negotiated by representatives of Northwest Airlines, Mesaba Airlines and its unsecured creditor committee,” a Northwest spokesman, Bill Mellon, said Thursday, reading from a letter that the airline filed in the Mesaba Aviation Inc. bankruptcy case. “There are no significant open issues requiring further negotiations.”

The negotiations between the two airlines appeared to bypass Mesaba’s sole shareholder, MAIR Holdings. The deal calls for MAIR to get a $145 million claim in Mesaba’s bankruptcy, although it is not clear how much that claim would ultimately be worth. It also includes $10 million in cash for Mesaba to use as operating money, said Tim J. Robinson, a lawyer for Mesaba’s creditors.

Bankruptcy judges in both cases would need to approve the deal.
Mr. Robinson said that while creditors hoped MAIR would go along with the sale, “we cannot afford any delay whatsoever given the time constraints of the Northwest deal.”

A Mesaba spokeswoman, Jane Berg, confirmed the filing, which was not immediately available online. She and a MAIR spokesman, Jon Austin, had no immediate comment on the filing.

 

[SWA/FO]

sounds like my mother-in-law. No money but buys everything (in sight).

 

[Hulk Hogan]

Who cares....its just money. can't pay?? Just file bankruptcy. can pay?? Just file bankruptcy.

 

[CFIfornow]

This will be a great deal for NW. They'll pick up Mesaba for a rock bottom price (with the MAIR investors kicking and screeming), give them a couple of jets, sell them off and make a nice little profit. As usual their plan is coming together nicely.

 

[YourPilotFriend]

The best part is NWA sent a letter saying if MAIR doesn't give them mesaba, they are canceling the saab contract. So if Riley wants a better deal, they get nothing.

 

[filejw]

Most of us (NWA) guys don't care what management does anymore but for sure we want the Mesaba pilots on our list in some shape or form.This whipsaw B.S. has to stop.We have to start being a real union at some point.

 

[80for80]

Most of us (NWA) guys don't care what management does anymore but for sure we want the Mesaba pilots on our list in some shape or form.This whipsaw B.S. has to stop.We have to start being a real union at some point.

If NWA ALPA is successful in getting Mesaba on the mainline NWA list, what ammunition does this provide Comair and the RJDC in their quest to get the on mainline Delta seniority list?

 

[ImbracableCrunk]

Hold the foehn!

The best part is NWA sent a letter saying if MAIR doesn't give them mesaba, they are canceling the saab contract. So if Riley wants a better deal, they get nothing.

Where'd ya find that little gem of info?

 

[Fly4hire]

Most of us (NWA) guys don't care what management does anymore but for sure we want the Mesaba pilots on our list in some shape or form.This whipsaw B.S. has to stop.We have to start being a real union at some point.

There will be no seniority integration. Never mind the local hurdles, NWA will fight it tooth and nail because having XJ operate as a wholly owned subsidiary is the only way they can pump it up and sell it.....

 

[SIG600]

This will be a great deal for NW. They'll pick up Mesaba for a rock bottom price (with the MAIR investors kicking and screeming), give them a couple of jets, sell them off and make a nice little profit. As usual their plan is coming together nicely.

You forgot the part where Mgmt completely fvcks over the employees before the do that.

 

[YourPilotFriend]

There will be no seniority integration. Never mind the local hurdles, NWA will fight it tooth and nail because having XJ operate as a wholly owned subsidiary is the only way they can pump it up and sell it.....

Exactly, because of the pay structure, having one list becomes a safety issue. Mesaba pilots will get a metered flow up to mainline this will continue even after the IPO per the NWALPA contract. Also, it's important to point out that the senior mesaba captains will provide a huge insurance break on the ERJ. I suspect that Mesaba will receive all 72 of the Sjets.

 

[filejw]

Well ALPA has a legal department too and there is something called a Single Carrier Petition.I would think it would be hard to prove we aren't doing the same job.

 

[CFIfornow]

You forgot the part where Mgmt completely fvcks over the employees before the do that.

We're talking about NW, I thought it was a given.

Two other things. One why would we (XJ) pilots get NW numbers? (It would be great if we did) Is it because of the Compass (Sjet) provisions? I believe that as many have said before this is similar to what happened to Express One and I don't think that any of those guys got numbers.

Second. I have heard a few people say that the insurance for the 170, 190 are high and NW needs high time pilots to fly them. If this is true and Mesaba is being used for this reason, is there any reason they wouldn't move the saabs to a different carrier? This would (may) keep XJ under the number of planes needed for snapbacks. Possible even use the 170 as a carrot to get rid of the MAIR letter, then pull the Saabs?

 

[filejw]

Why would you get NWA #'s. Cause you are doing work as a pilot for NWA and are owned by them 100%.Where as before it was just what 30 %.

 

[80for80]

Why would you get NWA #'s. Cause you are doing work as a pilot for NWA and are owned by them 100%.Where as before it was just what 30 %.

You mean just like Comair is by DAL?

 

[FDJ2]

If NWA ALPA is successful in getting Mesaba on the mainline NWA list, what ammunition does this provide Comair and the RJDC in their quest to get the on mainline Delta seniority list?

None. It is not a part of the RJDC litigation. No where in their claim against ALPA does the RJDC seek a single seniority list.

 

[saabservant]

Considering how long most at mesaba have been flying for nwa, it would be nice to acknowledge that with a seniority number, and integration, with fences, if necessary. This fee-for-departure, whipsaw b.s. needs to end, and all (including pinnacle, i guess) deserve career progression within an alpa carrier. As for "qualifications", over ten years of no accidents, incidents, or violations says a lot. But I know, there are the squadron guys to think of, too....

I know better than to even dream of something this progressive on the nwa property, though. Mgmt. won't want it, and nwa alpa won't expend the negotiating capital to get it...

 

[surplus1]

FDJ2 -- Thanks for getting that right.

 

[saabservant]

Ahhh, the wise surplus1 in here...how is the beatdown at CMR? Saw your guys at our roadshow...Hope things work out, but you know all about the alleged "impartiality" of bankruptcy judges...may they all rot in hell, with their mgmt. friends.

Remember all- the nwa fa strike injunction appeal is still out there...decision in March, maybe?

 

[filejw]

What Commair and DAL have going has nothing to do with this.What I say is how myself and some of my NWA brethren feel.Maybe the fact that this is all left up to the local level is part of the problem.If a crew flies ATL IAD in a 50 seat jet and the next flt crew is in a MD 80 I find it hard to say the are not doing the same work.

 

[Hulk Hogan]

I think YPF could be right. I could easily see all the 76 seaters at Mesaba, however minus the SAAB. good for the senior folk...bad for anyone looking to build pic and trying to make xj a distant memory. What a mess. cya

 

[flap operator]

Interesting how MAIR wants to rid themsevles of the scope letter. A perfect opportunity for NWA to transfer the saab operation to BigSky with out us and for MAIR to take the money made by Mesaba to buy planes for the BigSky kids. BigSky becomes the latest whore$ and Foley becomes the darling of the RAA. Wouldn't it have been nice for MAIR to fight as hard for Mesaba as they're fighting for BigSky? Makes me feel like the last 6 years of my life/career have been a waste of time. Fvck you Foley.


FO

 

[Hulk Hogan]

What's the thought on whether or not we lose the letter? If we think it is gone why not sell it and finance the next four years (and the last for that matter)? How much do you think that letter is actually worth to Mair? By finance I mean make even to our old contract for the next four years at the rate a person was making at the time of bankruptcy. Its a crapy idea but atleast we get some of xj's money back.

 

[YourPilotFriend]

What's the thought on whether or not we lose the letter? If we think it is gone why not sell it and finance the next four years (and the last for that matter)? How much do you think that letter is actually worth to Mair? By finance I mean make even to our old contract for the next four years at the rate a person was making at the time of bankruptcy. Its a crapy idea but atleast we get some of xj's money back.

It will be void when you transfer over to NWA. The contract is only binding when MAIR owns Mesaba. You can't monopolize another businesses labor.

 

[Hulk Hogan]

Thats kind of what I was thinking after reading the letter the other day. If this sale of XJ is going to happen then why would MAIR waste time in court trying to claim the letter void?

 

[PCL_128]

It will be void when you transfer over to NWA. The contract is only binding when MAIR owns Mesaba. You can't monopolize another businesses labor.

You conveniently ignore merger/acquisition language in Section 1 of the CBA. Any buyer will be held to the terms of the letter.

 

[YourPilotFriend]

You conveniently ignore merger/acquisition language in Section 1 of the CBA. Any buyer will be held to the terms of the letter.

No, the letter binds MAIR to the CBA, and not the other way around.The MAIR letter is an agreement between ALPA and MAIR, no other entities are bound to it; not even big sky. Also I highly doubt the Mesaba CBA will exist very much longer, in favor of the NWAALPA wholly owned CBA being negotiated.

 

[xjlifer]

No, the letter binds MAIR to the CBA, and not the other way around.The MAIR letter is an agreement between ALPA and MAIR, no other entities are bound to it; not even big sky. Also I highly doubt the Mesaba CBA will exist very much longer, in favor of the NWAALPA wholly owned CBA being negotiated.

The devil as they say is in the details.....none of which anyone posting on this forum knows enough about. Time ...and I am afraid the courts....will decide what is binding to whom.

I should have been a labor lawyer...seems to be a demand for those these days.

 

[YourPilotFriend]

The devil as they say is in the details.....none of which anyone posting on this forum knows enough about. Time ...and I am afraid the courts....will decide what is binding to whom.

I should have been a labor lawyer...seems to be a demand for those these days.

The education you are getting from this process is priceless, you will see that in the future.

 

[xjlifer]

Maybe ......but I am not getting any education from you.