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Old 01-04-2007 | 06:57 PM
  #1  
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Default Mesaba purchase in Final Stages

Going to get interesting around here again.

http://www.startribune.com/535/story/916401.html
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Old 01-04-2007 | 07:06 PM
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I think this is GREAT for the industry. Imagine if every airline had their own regional. One and only one for each airline. Less competition among regional airlines is great for us as pilots.

Imagine if this (and only this) was true:
American uses American Eagle
Continental uses ExpressJet
Delta uses Comair/Skywest
Northwest uses Mesaba
Alaska has Horizon
Frontier has Lynx

That would be great for the industry. I am rooting for Northwest to aquire Mesaba and give all their new flying to Mesaba.
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Old 01-04-2007 | 07:22 PM
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Default History repeats itself

Originally Posted by ryane946
I think this is GREAT for the industry. Imagine if every airline had their own regional. One and only one for each airline. Less competition among regional airlines is great for us as pilots.

Imagine if this (and only this) was true:
American uses American Eagle
Continental uses ExpressJet
Delta uses Comair/Skywest
Northwest uses Mesaba
Alaska has Horizon
Frontier has Lynx

That would be great for the industry. I am rooting for Northwest to aquire Mesaba and give all their new flying to Mesaba.

Are you being sarcastic here? If Mesaba gets bought by someone else or liquidates, then NWA will have lost one of it's whipsaw pawns. In case you didn't know the history; In the 80's to around 97-98? Express Airlines 1 (Memphis) and Express Airlines 2 (MSP)existed. I don't know the particulars or the order, but Brady sold the airline to NWA. They inturn split the company and gave the MSP flying to Mesaba. There's alot more to the stoy, but the bottom line is that NWA put Express on the brink, held out carrots of growth and jets just like they had to Mesaba with them being given the nothern flying. Mesaba also got the Avros. They will do the same thing with this. Anyone that knows the history of this can see the uncanny similarities. It's scary if you ask me!
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Old 01-04-2007 | 09:25 PM
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only good thing that can come out of this is a bridge program

and continental uses chataqua now, and maybe trans states soon
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Old 01-05-2007 | 04:28 AM
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It seems like parts of this are starting to come true. The next few weeks will be interesting. Watch the "Compass Option" fade into the sunset.

Originally Posted 12/22/06

FACTORS
NWA owns 30+ % of Mesaba (Mair Holdings)
NWA Senior Management owns a significant % of Mesaba (Mair Holdings)
NWA owns Mesaba aircraft and equipment
Mesaba is a "body factory." No concrete and bricks to purchase.
NWA has new CRJs and ERJs comming (may need court approval)
NWA short routes with average load factor can be flown by 90 seaters.
NWA pilots object to any regional flying aircraft with over 50 seats.

GOAL
Increase MAIR holdings stock value . (Management makes money.)
Reduce costs by using CRJs instead of A-320s, etc.on some routes
Avoid NWA pilot protest over commuter 90 seat issue.
Exercise greater control over owned assets.
Have a solely owned regional capability (like COMPASS was to be.)
Maintain crew staffing levels. Avoid eventual pilot shortage.
Make money.

SOLUTION
Assign 50 seat CRJs / ERJs to regional contractor (not Mesaba).
Purchase Mesaba (ready made regional airline)
Incorporate Mesaba personnel into NWA.
Assign 90 seat CRJs (ERJs ?) to NWA (former Mesaba personnel)
Establish a "flow through" for crew members.

RESULTS
NWA Makes money and comes out of bankruptcy.
NWA senior managers make money on their stock.
NWA pilots are happy that 50 seats and below go to regionals.
NWA has regional capability (foil to testy regional contractors)
Former Mesaba pilots are happy to be part of NWA with flow through.
Compass option is cancelled.
NWA avoids a potential pilot shortage at the "major" level.

And they all lived happily ever after.
Last edited by Ftrooppilot : 12-22-2006 at 12:03 PM

Last edited by Ftrooppilot; 01-05-2007 at 04:40 AM.
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Old 01-05-2007 | 10:30 AM
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Where does Big Sky lie in this whole equation? There has been speculation in other forums that if Mesaba is bought my Northwest, that Big Sky will eventually be sold to Mesa!? Why would this scope clause even need to be eliminated if Big Sky may eventually be sold to another airline. Possibly a rumor, but I have heard it from a few sources. There is a lot of expansion going on at Big Sky, pretty widely scattered too. Four current bases and a fifth in the works.

Current: Billings, Boise, Springfield, Ft. Lauderdale

Speculated: Somewhere around Boston

A lot of growth going on in the past year, noone here seems to know what is happening. A lot of speculation, though. Weird that Mesaba has pilots on furlough and Big Sky is hiring like crazy. My guess is as good as yours.

Street captain talk is also being thrown around if you want to go to Boston.
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Old 01-05-2007 | 11:24 AM
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Originally Posted by ryane946
I think this is GREAT for the industry. Imagine if every airline had their own regional. One and only one for each airline. Less competition among regional airlines is great for us as pilots.

Imagine if this (and only this) was true:
American uses American Eagle
Continental uses ExpressJet
Delta uses Comair/Skywest
Northwest uses Mesaba
Alaska has Horizon
Frontier has Lynx

That would be great for the industry. I am rooting for Northwest to aquire Mesaba and give all their new flying to Mesaba.

There is a lot you will learn when you are not an instructor and are a regional pilot, and why is it alright for delta to have 2 when the rest would have one?
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Old 01-05-2007 | 02:45 PM
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Originally Posted by Nick
Where does Big Sky lie in this whole equation? There has been speculation in other forums that if Mesaba is bought my Northwest, that Big Sky will eventually be sold to Mesa!? Why would this scope clause even need to be eliminated if Big Sky may eventually be sold to another airline.
This is probably why MAIR has filed the motion in Texas court to reject the Mesaba Scope letter. That letter is executed between MAIR and Mesaba. If Mesaba is sold to NWA and remains "Mesaba" a separate wholly owned company, the scope letter is still valid and any new MAIR flying over 19 seats has to go to pilots on our list. MAIR Holdings has to "hold" something to have a reason to exist. What they "hold" has to be profitable to pay Paul Foley's salary. Big Sky is not going to be profitable if owned by MAIR and our scope letter is in force. MAIR is not going to exist if they sell Big Sky.

My opinion, Mesaba gets sold, Big Sky gets sold, MAIR takes the money, gets out of the airline business and buys a trucking company or a restaurant or something! No matter what, WE ARE GOING TO BE BETTER OFF WITHOUT MAIR. Foley may have finally realized that bull**** might get you to the top, but it won't keep you there.

I wish the best to Big Sky. It sucks that you were USED by MAIR.
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Old 01-05-2007 | 03:05 PM
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Originally Posted by RJ85FO
This is probably why MAIR has filed the motion in Texas court to reject the Mesaba Scope letter. That letter is executed between MAIR and Mesaba. If Mesaba is sold to NWA and remains "Mesaba" a separate wholly owned company, the scope letter is still valid and any new MAIR flying over 19 seats has to go to pilots on our list. MAIR Holdings has to "hold" something to have a reason to exist. What they "hold" has to be profitable to pay Paul Foley's salary. Big Sky is not going to be profitable if owned by MAIR and our scope letter is in force. MAIR is not going to exist if they sell Big Sky.

My opinion, Mesaba gets sold, Big Sky gets sold, MAIR takes the money, gets out of the airline business and buys a trucking company or a restaurant or something! No matter what, WE ARE GOING TO BE BETTER OFF WITHOUT MAIR. Foley may have finally realized that bull**** might get you to the top, but it won't keep you there.

I wish the best to Big Sky. It sucks that you were USED by MAIR.
So why even bother with the scope clause elimination if both Mesaba and Big Sky are going to be sold off anyway? Oh, I think I get what you're saying... If the scope is eliminated, then Big Sky will stay owned by Mair ... If the scope clause stays intact, then Big Sky will be sold off and Mair will be gone? So do you think that all this expansion going on at Big Sky is because Mair is betting on this BS move that they are trying to pull off. Why is it that any contract that is signed between and Union and Management doesn't seem to be set in stone(atleast in managements eyes)?

I guess what it eventually will come to is how will upper management make the most money, not what is the right thing to do.
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Old 01-05-2007 | 06:43 PM
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The general consensus around Comair is that when Delta purchased them...that was the begining of the end. That was one of the worst things to happen to the Comair group. Comair had posted profit margins of roughly 30%! I know that this could not have continued in the present day, BUT things definately turned for the worse AFTER the purchase. Assuming the two are not merged, the lists/companies/scope/etc., are two different entities! I sincerly hope that things work out for Mesaba and Northwest should this happen, but being bought by big brother is not necessairly a good thing.
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