Northwest Considers Merger Of Its Own | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 07.30.14/Oshkosh Day 3! ** HD iPad-Friendly Version--Airborne 07.30.14/Oshkosh Day 3 **
** Airborne 07.29.14/Oshkosh Day 2! ** HD iPad-Friendly Version--Airborne 07.29.14/Oshkosh Day 2 **
** Airborne 07.28.14/Oshkosh Day 1! ** HD iPad-Friendly Version--Airborne 07.28.14/Oshkosh Day 1 **

Fri, Dec 22, 2006

Northwest Considers Merger Of Its Own

In Talks To Acquire Regional Carrier

Currently left out of the merger mania surrounding four other US carriers, Northwest Airlines is looking at an acquisition of its own: beleagured regional carrier Mesaba Airlines.

Unlike US Airways' hostile bid for Delta, however, and AirTran's unwelcome offer for Midwest Airlines... Mesaba appears to be eager and willing for Northwest to step in.

"Northwest ownership would secure our core business and, in the long run, position us for growth," Mesaba president John Spanjers wrote in a letter to employees.

Mesaba currently operates as an independent airline, although it flies all its routes for Northwest. If Northwest purchases Mesaba, it would operate as a wholly-owned subsidiary -- much as Comair does for parent company Delta.

As Aero-News reported, Mesaba filed for bankruptcy in October 2005, one month after Northwest, in part because Northwest was unable to make scheduled payments to the regional operator. The Eagan, MN-based carrier's fleet once comprised over 100 aircraft, a mix of Avro regional jets and Saab turboprops. That fleet has since been pared down to about 50 planes, nearly all of them props.

Such an arrangement does not conflict with Northwest's own planned regional carrier, Compass Airlines, which will operate Bombardier and Embraer RJs.

"Northwest believes that having Mesaba as part of the Northwest family is the preferred way to operate the Northwest Saab 340 fleet," Northwest spokesman Bill Mellon told the Minneapolis-St. Paul Star-Tribune. "The agreement would allow Northwest to continue to offer service to a number of communities that depend on the Saab fleet to provide convenient connections to Northwest's global network."

Mellon added the Northwest Creditors Committee has already reviewed the acquistion plan... an indication the airline is serious about purchasing Mesaba.

Analysts say the deal appears to cut out Mesaba's current owner, MAIR Holdings. Mesaba employees have criticized the amount of money paid to MAIR CEO Paul Foley, as they were asked to absorb double-digit concessions.

Northwest owns 28 percent of MAIR, its largest shareholder.

FMI: www.mesaba.com, www.nwa.com

Advertisement

More News

Airborne 07.25.14: Global Flight Tragedy, Blue Angel Update, GA's Next Big Thing

Also: Eve Of Oshkosh, WomenVenture, Garmin Flight Stream, AEA Pilot's Guide The father-son duo of Babar Suleman and 17-year-old Haris Suleman of Plainfield Indiana had planned thei>[...]

IMC CLubs Leads The Way To OSH14 Special Event Coverage

IMC Clubs: Building Instrument Proficiency Through Community When it comes to flying, there is no substitute for proficiency and training. And maybe nowhere is that more important >[...]

Electrifying OSH2014 Sponsor: Concorde Batteries

Concorde Charges Up Our Oshkosh 2014 Coverage! Concorde Battery Corporation has been in the battery manufacturing business for over 30 years and is the world leader in Valve Regula>[...]

Innovative OSH14 Sponsor, iFlightPlanner, Provides Expert Guidance

What is iFlightPlanner? iFlightPlanner is general aviation’s most comprehensive suite of easy-to-use flight planning tools for private and corporate pilots. Featuring iFlight>[...]

OSH2014 Sponsor: Eclipse Aerospace -- In Full Production!

The Eclipse 550: Economical. Efficient. Incredible. The Eclipse 550 not only has the lowest acquisition cost of any twin-engine jet on the planet, it also has the lowest operating >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC