Mesaba to take another hit?

justmeinmsp

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http://biz.yahoo.com/bw/031007/75880_1.html

Mesaba Aviation Agrees to Extend Termination Notice Period for RJ85 Agreement
Tuesday October 7, 7:30 pm ET

MINNEAPOLIS & ST. PAUL, Minn.--(BUSINESS WIRE)--Oct. 7, 2003--Mesaba Aviation, Inc., a subsidiary company of MAIR Holdings, Inc. (Nasdaq:MAIR - News), announced today that Northwest Airlines is considering exercising its right to terminate the Avro RJ85 agreement under which Mesaba leases and operates 36 jet aircraft. The agreement governing Mesaba's Saab SF340 turbo-prop aircraft remains intact.

Under the terms of the 1996 Regional Jet Services Agreement between Northwest and Mesaba, Northwest may - at its sole discretion - terminate the agreement by providing notice to Mesaba on or before Oct. 28, 2003. At Mesaba's request, the two companies have agreed to extend the termination notice period to Dec. 15, 2003, so that Northwest can continue a review of the operating economics of the RJ85 fleet. If Northwest provides notice of early termination, the Regional Jet Services Agreement would terminate as of April 25, 2004.

Northwest and Mesaba have also agreed to remove five of the 36 Avro RJ85 aircraft from service. Three of the Avros will be removed from service on or about Dec. 1, 2003 and two more on or about Jan. 1, 2004.

"We are very concerned about the potential implication of an early termination," said John Spanjers, Mesaba's president and chief operating officer. "While Northwest is finishing its analysis, Mesaba will be developing plans to address the potential permanent removal of the RJ85 fleet from Mesaba's operations. Mesaba has a history of excellent performance for Northwest, and we hope this will provide the basis for a continued prosperous relationship."

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 109 cities in 28 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 104 regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85 and the 30-34 passenger Saab SF340.

MAIR Holdings, Inc. is traded under the symbol MAIR on the NASDAQ National Market.

More information about Mesaba Airlines is available on the Internet at: http://www.mesaba.com.
 

SpocksBeard

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I smell a furlough in my future...
Or bargaining tactic?
Anyone?
 
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avrodriverj85

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They can take the Avro back and send all the CRJ's over to Pinnacle, and even shut the place down - before we take any sort of pay-cuts in my opinion.. it's all a bluff...

BRING IT ON !!!
 

T-Gates

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Have the NWA pilots started talks on scope in their negotiations? Mabye Management is going to use the Avros going away as a carrot for them....

Who knows...

I hope all the best for you guys as Mesaba....
 

avrodriverj85

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It doesnt matter what NWA is doing with NWA pilots or Pinnacle pilots or even Big Sky pilots... most of the pilot group over here is just sick and tired of the games and even the criminal back-door shell games that are going on. Why is this any different than Enron and WorldComm? There is so much co-mingling of funds and conflict of interest it would make most peoples head spin. And ALPA, where do they come in? Hopefully our MEC will tell the company to shove this one up their ass and stand their ground and call the bluff.

As for now most pilots, or at least the ones I talk to say burn it down. Of course we've been saying that all along.

100% Unified..
 

Beerme

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T-Gates said:
Have the NWA pilots started talks on scope in their negotiations? Mabye Management is going to use the Avros going away as a carrot for them....

Who knows...

I hope all the best for you guys as Mesaba....
No, we haven't discussed scope in the negotiations. I don't see them using getting rid of Avros to get, what...another big RJ...or something bigger? Why would we agree to this? I see it as a negotiating ploy by mgt, but they were already planning on parking or giving back these things anyway. They'll replace them with combination of Dc9s, and CRJs. Mesaba guys should have seen this coming...although, I don't know what they could have done about it.
 

filejw

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This is one of the problems with the regional airlines,many are just contract carriers and when the contract is up no more work.Its happened before and will again.When the larger airline doesn't need the lift they don't renew the contract or use an early termination clause.In this case its sad because I know the Mesaba people to be first class.
 

XJAVRO

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The question is where are the Avro's going to go. According to Paul Foley back in 2002, he said that Northwest has a lease on the avro's until 2015? Not sure if the exact year, but it was around then. I know they can get out of the lease early, but that will take money. Smells like a negotiation tactic to me.
 
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DISCLAIMER---I KNOW NOTHING--JUST TALKING OUT LOUD

(that should keep the namecalling down)

Mainline has coveted those a/c from day 1. There were rumors pre-9/11 of stripping out f/c and flying 85 coach seats, which would have to be done by mainline.

Who really knows what has been opened (scope, et.al.) by our MEC and mgmt? I have learned over the years not to be too shocked.

The point about the contract carrier is right on! This is why I chuckled about wholly-owned, single-codeshare IPO's. PCL is effectively nothing more than a crew leasing company. Why would I as an investor want to buy that? If I did, I sure wouldn't pay for it like an "real" airline! Possibly why Coex closed below its initial offering. I may not have a B-school degree, but I do have a degree....and i don't think I am alone.
 

Simon Says

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efiscompmon said:
DISCLAIMER---I KNOW NOTHING--JUST TALKING OUT LOUD

(that should keep the namecalling down)

Mainline has coveted those a/c from day 1. There were rumors pre-9/11 of stripping out f/c and flying 85 coach seats, which would have to be done by mainline.

A mainline CA would never fly that airplane for $63.00 and hour. Or even $100.00 an hour. That is the top pay scale we are currently in negotiations for.
 

othello

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I have been here at Mesaba since March 01, 2yr and 8 months and that has me sitting about 800 on our 850 pilot seniorty list, I have never been off reserve never had more than the min 10 days off never made more than my 75 hour garuntee.

I have as much to gain as anyone from us signing a contract now.

That said, I stand firm along with every Mesaba pilot that I have talked to in saying that we would rather have 400 pilots flying a Saab fleat working under a fair new contract than all 850 pilots working under a sub par "Mesa like contract"

We won't give in to our own managment.
 
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Saabslime

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Maybe a Northwest pilot can chime in here. I remember hearing sometime back that there's a clause in the NWA contract that basically says the Avro fleet will only be flown by Mesaba Airlines. Assuming thats true and the NWA pilots wouldn't sell us down river (I don't think they would), do you really think NWA management is willing to fork over all the money required to break those leases prematurely? Just to try and scare us into signing a Big Sky like contract?

My gut feeling is they will take away the initial 5 they're talking about just to show us how serious they are and try to stir us into a panick. Then if we still aren't caving there will be an announcement about how they are further analyzing the "cost structure" of the remaining Avro fleet. After still no caving in (boy those Mesaba pilots are really standing strong!) they take another one or two and so on and so on. Finally after we get the contract we are fighting for ratified, NWA will suddenly come to the realization that those Avros really do make us a nice little profit after all and start bringing them back on line. Hey, if they're willing to go to extremes then so am I!!!!! Fair contract or burn the place down !
 

T-Gates

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Notwithstanding Section 1 C.9.a., Section 1 C.9.b. and Section 1 C.9.c. above the NW code designator may be used on up to 36 AVRO-85 aircraft at Mesaba Airlines, so long as such aircraft are configured for less than 70 passenger seats. The Company may add one Regional Jet for each AVRO-85 aircraft which is permanently removed from service at Mesaba, or which is not delivered to Mesaba, without regard to the numerical limits set forth in Section 1 C.9.c. above.
But any RJ added must adhere to the definition in the contract....

Which means 44/50 seater....
 

Simon Says

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othello said:
I have been here at Mesaba since March 01 and that has me sitting about 800 on our 850 pilot seniorty list, I have never been off reserve never had more than the min 10 days off never made more than my 75 hour garuntee.

That sucks! I thought you were a little more senior than that.
 

de Pez

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NW has announced it is cutting 30% of the departures out of MEM... Is that a contract bargaining tool also? No, it's the difference between being in the the red or the black. It's business, and making money is the bottom line. If the bean counters say a CRJ is cheaper than a ARJ, then so be it (from the mngmnt perspective).

Also, I'm not sure: "Bring it on on!" is a great rallying cry. I believe that was something originally said by George Custer, or was it Richard Nixon?
 

727RedTails

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Just my opinion,but...

1. The AVRO's wouldn't be profitable without the sweet deal Bae gave NWA initially when the AVRO's were purchased. So without an extension of that (BAe is in bankruptcy) the AVRO's will be gone. No matter what the Mesaba pilots do.

2. The flying will be picked up by a combination of the underutilized DC9's and the additional CRJ's. People were wondering what all those RJ's would be flying, heres the answer. And without the AVRO's, NWA can get a one for one 50 seater instead of the 44 seaters as replacements.

3. NWA has an outclause that says they can terminate the AVRO leases if notification is given before OCT now DEC.
 

T-Gates

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mesaba2425 said:
It looks like XJ is going to get some of those CRJs after all.
How do ya' figure that?! If this was the plan all along, why would NWA go through the trouble of allocating the rest of the RJ's to PCL, if thier chief intent was to give some to Mesaba after ditching the Avros?

Do tell.....



:eek: :rolleyes:
 

cl-65link

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NW has 175 options. I bet they exercise some, if not all, of them.
 
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