Judge: Mesaba can void labor contracts

Minneapolis/St. Paul Business Journal - 12:31 PM CDT Friday

Mesaba Airlines can void its contracts with its three largest unions, a bankruptcy judge ruled Friday.

Voiding the contracts would allow Mesaba to impose its own contract terms. The airline has said it needs to trim labor costs by 19.4 percent as part of its plan to emerge from bankruptcy.

Judge Gregory Kishel said Mesaba must give the unions 10 days notice if it plans to throw out the current contracts.

Mesaba's pilots, flight attendants and mechanics have said they might strike if the airline voids their contracts.

Mesaba, a subsidiary of Minneapolis-based MAIR Holdings Inc. (Nasdaq: MAIR), flies regional routes for Eagan-based Northwest Airlines Corp. (Pink Sheets: NWACQ). Mesaba filed for bankruptcy last October, a month after Northwest did so.