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Old 12-21-2006, 12:02 PM
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Default Northwest may buy Mesaba

http://biz.yahoo.com/ap/061221/north...saba.html?.v=2
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Old 12-21-2006, 08:58 PM
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http://www.aero-news.net/index.cfm?C...-223c8449baf5&

Isn't that going to hurt a little bit? Couldn't this threaten the their partnerships with other regional airlines such as Pinnacle. Now, Pinnacle will have to compete with Compass and Mesaba. Those two together will definitely have some strength. It's kind of a new game though with the new ASA between Pinnacle and NW. It's all crazy these days!
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Old 12-22-2006, 07:59 AM
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WARNING: I am not and have never been an airline pilot nor have I ever been employed in airline management. The statements below are a figment of my imagination - OR ARE THEY ?


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 08:03 AM. Reason: Additional result.
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Old 12-22-2006, 08:02 AM
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Ftroop,

Your scenario is not as "out to lunch" as you may think.
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Old 12-22-2006, 10:24 AM
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Originally Posted by Ftrooppilot
WARNING: I am not and have never been an airline pilot nor have I ever been employed in airline management. The statements below are a figment of my imagination - OR ARE THEY ?


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.
What if Northwest was buying Mesaba with the intentions of taking it public again in a few years? (ala Pinnacle) Think about it, after the bloodletting that Mesaba's employees have been through since NWA's and Mesaba's bankruptcies, the cost of wages and benefits at Mesaba is low right now. Give them some new airplanes and routes and they look pretty good to financial community. The profits from the IPO could also be used to feed the mainline's pension plan.
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Old 12-22-2006, 11:32 AM
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Are they just buying them so they don't have to bother with Compass and just fly the RJs on Mesaba OC?
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Old 12-22-2006, 11:42 AM
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Originally Posted by DMEarc
Are they just buying them so they don't have to bother with Compass and just fly the RJs on Mesaba OC?
I think Mesaba already had received a CRJ from Norhtwest before the bankruptcy, so I am not sure what that would change. Maybe some Mesaba employees could jump in here....
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Old 12-22-2006, 11:55 AM
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Mesaba received two 50 seat CRJs. One went to Compass and has been sitting on the ramp. The other has been flow by Mesaba. It was announced today that both of these aircraft will go to Pinnacle.
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Old 01-27-2007, 04:28 AM
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1/27/07

Let’s see how we are doing on a thirty-five day old post.



Originally Posted by Ftrooppilot
WARNING: I am not and have never been an airline pilot nor have I ever been employed in airline management. The statements below are a figment of my imagination - OR ARE THEY ?


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). (To Pinnacle)
Purchase Mesaba (ready made regional airline) (Done)
Incorporate Mesaba personnel into NWA. (Relationship remains to be seen.)
Assign 90 seat CRJs (ERJs ?) to NWA (former Mesaba personnel) (Mesaba - for now)
Establish a "flow through" for crew members. (Depends upon relationship)

RESULTS
NWA Makes money and comes out of bankruptcy. (In process)
NWA senior managers make money on their[Mesaba] stock.
(Mesaba managers will get $1M in bonuses) NWA Management ?
NWA pilots are happy that 50 seats and below go to regionals. (Done)
NWA has regional capability (foil to testy regional contractors) (Done)
Former Mesaba pilots are happy to be part of NWA with flow through. (Happy with CRJs / Flow through ???)
Compass option is cancelled. (It will happen.)
NWA avoids a potential pilot shortage at the "major" level. (Draw from Mesaba)

And they all lived happily ever after.

.

Batting average isn't bad. My best guess - Compass will fade into the sunset. The ERJs will go to Mesaba or NWA mainline. Much depends upon the finalized relationship after NWA purchases Mesaba. Will the name Mesaba be dropped ? Lots of interesting senarios possible.

Last edited by Ftrooppilot; 01-27-2007 at 05:24 AM.
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