Mesaba responds to bankruptcy ruling

Mesaba Aviation has released the following statement regarding U. S. Bankruptcy Court Gregory Kishel’s ruling to deny the company’s 1113(c) motion to reject its collective bargaining agreements with its mechanics, flight attendants and pilots: “We believe Mesaba has a strong case and it’s clearly apparent from Judge Kishel’s well-reasoned and thoughtful opinion that Mesaba is in dire financial straits and needs cost restructuring. The Court found reasonable and necessary Mesaba’s core business assumptions including the 19.4 percent labor cost concessions over six years.

Judge Kishel denied Mesaba’s motion only due to its failure to provide a working financial model to the unions and its modeling of workforce attrition. These limited issues either already have been addressed or will be shortly.

Mesaba will continue to meet with its unions to address their concerns about the bankruptcy and continue to seek consensual agreements. While we’re disappointed in the delay, Judge Kishel states that if the unions do not recognize the dire financial condition of the Company, Mesaba can re-file the motion and it will be heard promptly.”

Mesaba Aviation, Inc., d/b/a Mesaba Airlines, operates as a Northwest Jet Airlink and Northwest Airlink partner under service agreements with Northwest Airlines. Currently, Mesaba Aviation serves 101 cities in 29 states and Canada from Northwest’s and Mesaba Aviation’s three major hubs: Detroit, Minneapolis/St. Paul, and Memphis. Mesaba Aviation operates an advanced fleet of 77 regional jet and jet-prop aircraft, consisting of the 69-passenger Avro RJ85, the 50-passenger CRJ-200, and the 30-34-passenger Saab SF340.
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