Bankruptcy Filing
On 14 September 2005, Northwest Airlines filed for Chapter 11 Bankruptcy protection. Subsequently, the airline withheld over $25 million in payments from their regional partners Mesaba and Pinnacle. Northwest proceeded to announce plans to ground the entire Avro fleet by Q1 2007, 10 Saab 340B aircraft by 24 January 2006, and to halt the delivery of the 13 remaining Canadair Regional Jets, leaving Mesaba with an awkward and expensive fleet of two aircraft. Facing rising fuel costs, downsizing plans, and lack of income from Northwest, Mesaba Aviation filed for Chapter 11 on 13 October 2005.
In an interview in January 2006, Mesaba President John Spanjers announced that the Mesaba fleet would be cut in half by the end of the year. Twelve Avro jets had already been removed from the fleet, and the balance would be grounded by the end of the year. 10 Saab 340 "B" model aircraft were returned to Pinnacle Airlines (from whom they were leased) during January 2006 while the 3 remaining "A" model Saab 340's and the two Canadair Regional Jets that had been delivered to Mesaba prior to bankruptcy would leave the fleet before mid-year. These changes left Mesaba with a fleet of 49 Saab 340 turboprops.
As of January 2006, the company employed 3,707 people.
On 14 April 2006 the company announced reductions of the RJ85 fleet, at Northwest Airlines' direction. RJ-85's ceased flying out of Memphis on June 8, and on October 31 the last RJ85 disappeared from Minneapolis/St. Paul. The last RJ85 aircraft was retired in Detroit on December 4, 2006.
Separately it was announced that one of the two 50-seat Canadair Regional Jets operated by Mesaba would be taken by Northwest to start the flying operations (expected in late 2006) of newly formed Northwest Airlines subsidiary Compass Airlines.
By the end of October 2006, all three of the major unions representing the pilots, flight attendants, and mechanics reached tentative agreements that still needed to be approved by the membership. On November 27, 2006, the three unions announced that their membership had ratified the new agreements.
In December 2006, Northwest Airlines said it may purchase Mesaba Airlines from current owner MAIR Holdings and operate it as a wholly owned subsidiary. Tentative agreement to the sale were made; however, the merger could not have been approved without going through bankruptcy board proceedings and approvals of regulators and various interest groups.
On April 24, 2007, Mesaba Airlines emerged from bankruptcy protection and was officially acquired by Northwest Airlines.
Read more about this topic: Mesaba Airlines
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