Mesaba pilots, flight attendants and mechanics are calling for the removal of top executives at Mesaba Airlines and MAIR Holdings in an overwhelming "Vote of No Confidence." The employee groups, which have formed the Mesaba Labor Coalition, don't believe that top management has acted in the airline's best interests. The decision to transfer virtually all of Mesaba's profits to MAIR Holdings has put the employees' careers, livelihood and futures at risk.
Each Mesaba employee who signed a petition reaffirmed that he or she has absolutely "no confidence in management's ability to lead, direct, or run either Mesaba or MAIR."
The labor groups will highlight their complaints through a picketing demonstration at Minneapolis-St. Paul International Airport Wednesday, February 8, from 4:30 pm to 6:15 pm local time. The demonstration will continue at the Detroit Metro Airport and at the Memphis Shelby County International Airport on Thursday, February 9, from 4:30 pm to 6:15 pm local time.
Management is currently seeking to use the bankruptcy process to reject the pilot, flight attendant, and mechanic contracts, and has proposed deep wage and benefit cuts.
The "Vote of No Confidence," signed by the vast majority of Mesaba's unionized employees, is substantiated by the following facts:
* Mesaba Airlines generates more than 95 percent of MAIR Holdings' revenue. Virtually all of Mesaba's profits have been transferred to MAIR Holdings, which had $120 million in cash and equivalent assets when Mesaba filed for bankruptcy.
* MAIR Holdings began to siphon off Mesaba's profits in late 2002 when it used Mesaba's earnings to purchase Big Sky Airlines. MAIR announced that Big Sky would become the holding company's "growth vehicle" because of its low labor costs. MAIR executives actively pursued growth via Big Sky, but were not successful in winning any new business. Big Sky has been consistently unprofitable since its purchase, yet it is not in bankruptcy.
* Despite the failed growth strategy, MAIR Holdings executives have rewarded themselves with salaries, bonuses, and stock options at levels that exceed their peers at both regional and mainline carriers.
PR Newswire
Each Mesaba employee who signed a petition reaffirmed that he or she has absolutely "no confidence in management's ability to lead, direct, or run either Mesaba or MAIR."
The labor groups will highlight their complaints through a picketing demonstration at Minneapolis-St. Paul International Airport Wednesday, February 8, from 4:30 pm to 6:15 pm local time. The demonstration will continue at the Detroit Metro Airport and at the Memphis Shelby County International Airport on Thursday, February 9, from 4:30 pm to 6:15 pm local time.
Management is currently seeking to use the bankruptcy process to reject the pilot, flight attendant, and mechanic contracts, and has proposed deep wage and benefit cuts.
The "Vote of No Confidence," signed by the vast majority of Mesaba's unionized employees, is substantiated by the following facts:
* Mesaba Airlines generates more than 95 percent of MAIR Holdings' revenue. Virtually all of Mesaba's profits have been transferred to MAIR Holdings, which had $120 million in cash and equivalent assets when Mesaba filed for bankruptcy.
* MAIR Holdings began to siphon off Mesaba's profits in late 2002 when it used Mesaba's earnings to purchase Big Sky Airlines. MAIR announced that Big Sky would become the holding company's "growth vehicle" because of its low labor costs. MAIR executives actively pursued growth via Big Sky, but were not successful in winning any new business. Big Sky has been consistently unprofitable since its purchase, yet it is not in bankruptcy.
* Despite the failed growth strategy, MAIR Holdings executives have rewarded themselves with salaries, bonuses, and stock options at levels that exceed their peers at both regional and mainline carriers.
PR Newswire
