Mesaba Airlines Bankruptcy Court Judge Grants Mesaba Airlines' Motion for Authority to Reject Its Labor Contracts.MINNEAPOLIS & ST. PAUL, Minn. -- Mesaba Aviation, Inc. a subsidiary company of MAIR Holdings (NASDAQ:MAIR) said today that Judge Gregory Kishel of the U.S. Bankruptcy Court for Minnesota granted the airline's motion for authority to reject its contract with flight attendants, pilots and mechanics. This ruling only authorizes Mesaba to make changes to its collective bargaining agreements at a time that it determines to be appropriate. The ruling does not mean changes are imposed automatically. The Court directed Mesaba to give the labor groups a 10-day notice before rejecting the contracts and imposing new terms. "For months, Mesaba's efforts have been focused on reaching consensual 1. Of or relating to a reflexive response of one body structure following stimulation of another, such as the concurrent constriction of one pupil in response to light shined in the other. 2. Of or relating to involuntary movement of a body part accompanying voluntary movement of another. con·sen agreements with its unions and that is where they continue to be," said John Spanjers, Mesaba Airlines president and COO. "We prefer consensual agreements and believe that they are in the best interest of all involved - the company, its employees, and our passengers. However, Northwest Airlines' bankruptcy and its subsequent actions, along with the continuing distress impacting the entire industry, require us to take sweeping measures to secure Mesaba's future." If no agreement is reached, the company is authorized to implement the most recent proposals it presented to each group represented by the Association of Flight Attendants (AFA), the Airline Pilots Association (ALPA ALPA - Air Line Pilots Association ALPA - Adelaide LAN Party Association ALPA - Adult Learning Programs of Alaska ALPA - Arbitrated Loop Physical Address ALPA - Association of Little People of Alberta (Canada)) and the Aircraft Mechanics Fraternal Association (AMFA). Mesaba has reached agreements on permanent wage and benefit reductions with the Transport Workers Union (TWU TWU - Telecommunications Workers Union TWU - Texas Wesleyan University TWU - Texas Woman's University TWU - Transport Workers Union TWU - Transport Workers Union of America TWU - Trinity Western University TWU - Two Worlds United). Today's ruling does not impact Mesaba's operations or its obligations to Northwest or to its passengers - Mesaba intends to fly its full schedule. Mesaba operates as a Northwest Jet Airlink and Airlink partner under an airline service agreement with Northwest Airlines. The airline serves 98 cities in the United States and Canada from Northwest's and Mesaba's three major hubs: Detroit, Minneapolis/St. Paul and Memphis. Mesaba operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85, the 30-34 passenger Saab SF340 and the 50 passenger Canadair Regional Jet. Mesaba filed for Chapter 11 bankruptcy protection on October 13, 2005 and continues to operate as a debtor-in-possession. Mesaba maintains a web site at www.mesaba.com. Mesaba Airlines is a wholly owned subsidiary of MAIR Holdings, Inc. MAIR Holdings, Inc. is traded under the symbol MAIR on the NASDAQ National Market. Media inquiries: Elizabeth Costello 651-367-5264 |
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