“These investments will result in a strong company in 2012 and beyond,” said Mr Hunt. “When we sat down with Delta to acquire Mesaba the goal was to provide a better product for Delta and a better cost structure for both. To that end we have an early rate increase based on the increased costs of integrating the three pilot groups and the new pilot contract which will come 12 months from now. We will get a one-time payment as much as USD18-20 million to cover the cost increases incurred over the next 12 months for the contract and pilot training and relocation costs as well as integration costs. In addition, the contract includes forward looking changes in rates that will start in the Spring of 2012 that the company currently estimates at USD14 million annually. So, 2011 will be a down year because we won’t have the benefit of the rate increase until 2012. But that means a vastly improved 2012 and beyond and that is where the focus needs to be.” The company will also see its first rate increase in 10 years for its former Northwest operations effective in January 2013. The original contract called for an adjustment every five years but Northwest was in bankruptcy when the first five years came due, putting off any rate increases until 2013. However, during the past decade, said Mr Hunt, cost increases have far outpaced inflation owing to its ageing CRJ200 fleet. Consequently, the company is in for a sizeable increase beginning 2013.