Northwest, MAIR agree on terms of Mesaba sale

[FA Mikey]

Mesaba creditors are likely to be paid in full for their claims. Mesaba unions are expected to receive almost $23 million.

Northwest Airlines and the parent of Mesaba Airlines will exchange multimillion-dollar payments in the deal by which Northwest will acquire Mesaba.

The terms of the transaction revealed Monday are complex, but essentially they amount to a divorce between Mesaba and parent MAIR Holdings and the adoption of Mesaba into the Northwest family.

To accomplish the split, Minneapolis-based MAIR will buy out all of Northwest's shares in MAIR for about $35 million. In return, MAIR will receive a payment after creditors of the bankrupt Mesaba are paid following the sale of Mesaba's claim against Northwest, which is valued at $145 million.

story here

 

[Redbone]

Mesaba creditors are likely to be paid in full for their claims. Mesaba unions are expected to receive almost $23 million.

Northwest Airlines and the parent of Mesaba Airlines will exchange multimillion-dollar payments in the deal by which Northwest will acquire Mesaba.

The terms of the transaction revealed Monday are complex, but essentially they amount to a divorce between Mesaba and parent MAIR Holdings and the adoption of Mesaba into the Northwest family.

To accomplish the split, Minneapolis-based MAIR will buy out all of Northwest's shares in MAIR for about $35 million. In return, MAIR will receive a payment after creditors of the bankrupt Mesaba are paid following the sale of Mesaba's claim against Northwest, which is valued at $145 million.

story here

Poor Mesaba.

 

[Don Smith]

How to get rid of a pain in your side...CEO 101.
Buy out your pain and liquidate. With the invent of Compass and the Pinnacle coverage nwa can liquidate Mesaba and sell the assets. The people??? We know what nwa thinks of its people. So "poor Mesaba" indeed Redbone.

Poor Mesaba.

 

[Kev3188]

Wait a minute! I thought places like BJI, and ALO were the crown jewels in our network?!

Seriously, Don and Redbone are dead on. I predict some sort of liquidation followed by the transfer of SF3 flying to either 9E or CP.

 

[jenny@nw]

get the unfortunate NW treatement. :down:

 

[Kev3188]

Wait a minute! I thought places like BJI, and ALO were the crown jewels in our network?!

Seriously, Don and Redbone are dead on. I predict some sort of liquidation followed by the transfer of SF3 flying to either 9E or CP.

Or not?????


Mesaba to Operate CRJ900s
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Northwest has confirmed a report that Mesaba Airlines, when it becomes part of Northwest, will sublease and operate NWA’s fleet of Bombardier Canadair Regional Jet (CRJ) 900 aircraft.


The announcement, first made as a Mesaba announcement to its employees, follows the disclosure that Mesaba and Northwest have signed a stock purchase and reorganization agreement under which Mesaba would become a wholly-owned subsidiary of Northwest, subject to bankruptcy courts’ approvals as well as other conditions of the agreements.


In October 2006, Northwest placed an order for 72 regional jets, including 36 CRJ900s and 36 Embraer 175s. The airline expects the first CRJ900 to be delivered in May 2007. Two CRJ900 aircraft per month are expected to be delivered through December 2008.


Northwest has previously announced that Compass Airlines will operate its Embraer 175 regional jets.


The modern CRJ900 aircraft will offer Northwest Airlink customers a comfortable travel experience. The CRJ900 will be configured with 12 seats in first class and 64 seats in coach class. The 12 first class seats, arranged in a one seat-aisle-two seats configuration, will have 36 inches of pitch, or space between rows. Coach class will be arranged in a two seats-aisle-two seats configuration.




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© Northwest Airlines, Inc. Last Modified: 01/26/2007 05:05 PM

 

[jenny@nw]

36 inches of pitch, or space between rows

How is my 40" hips going to squeeze into those seats?

 

[Spock]

How is my 40" hips going to squeeze into those seats?

I've flown in the CJ's, the seats have less room that those in the old VM Beetle's. Not comfortable at all. Then I heard they were flying some routes of up to 3 hours???????? :down:

 

[Kev3188]

Here's a few routes off the top of my head that are flown with CRJ's that if not 3+ hours, have to be close...

MSP-TUS*
MSP-HLN
MSP-CPR
MSP-BZN*
MSP-COS*

IND-RSW
IND-FLL

MEM-ASE*
MEM-DEN

*= seasonal, previously run, or not currently operating....

 

[Don Smith]

I flew routinely from MEM-CMH on a CRJ and it was very uncomfortable. That flight was less than 2 hours. I have guys working for me now that I encourage to look at the equipment first. Many times we can find flights at the same price that are the difference between a CRJ and a 737.
Incidentally, nwa is usually the highest priced ticket and most of the time the flights are CRJs.

 

[jenny@nw]

I flew routinely from MEM-CMH on a CRJ and it was very uncomfortable. That flight was less than 2 hours. I have guys working for me now that I encourage to look at the equipment first. Many times we can find flights at the same price that are the difference between a CRJ and a 737.
Incidentally, nwa is usually the highest priced ticket and most of the time the flights are CRJs.

Forgive me for not being airplane savy, but don't those take longer to "get there" ?

 

[Singleflyer]

Like Don Smith, I choose my flights on the equipment used. When in MSP I do not take the MSP-MHT on an RJ, I take MSP-DTW-MHT on a DC9/A320. Even though it is a longer flight, I can stand up when I get there. If I am correct, I get home earlier becasue we leave earlier.

Because of this thinking I have elite status on several airlines. In some cases NW has gained revenue over others, and in other markets it has lost revenue.

The airline with the biggest planes usually wins in my book. The old DC9s helped NW capture alot of my business that would have gon to UA.