Item 8.01. Other Events.
On Monday, September 26, 2005, Northwest Airlines, Inc. ("Northwest") made a payment of approximately $1.6 million to Mesaba Aviation, Inc. ("Mesaba"), a wholly owned subsidiary of MAIR Holdings, Inc. (the "Company"). The payment due was for services provided by Mesaba to Northwest from September 1 through September 15. However, due to Northwest's bankruptcy petition filed on September 14, 2005, Northwest paid only that portion of the payment attributable to services provided post-petition. Mesaba estimates the total amount of its prepetition claim with Northwest to be approximately $28 million.
Although Northwest's most recent payment indicates its intent to pay Mesaba for services provided following the date of Northwest's bankruptcy filing, Northwest has also significantly reduced the number of flights Mesaba will operate for Northwest. Specifically, Northwest will remove nine Avro Regional Jets ("Avros") from service effective October 31, 2005, and Northwest provided Mesaba with notice of its intent to terminate the leases for all 35 of the Avros effective December 20, 2005. The aggregate effect of these actions will significantly reduce Mesaba's revenue and will lead to losses in the Company's third and fourth fiscal quarters. Mesaba continues to assess all available alternatives, and the Company, as the sole shareholder of Mesaba, continues to separately assess the impact of the various alternatives available to Mesaba.
DLKAPA From , joined Dec 1969, posts, RR:
Reply 3, posted (9 years 5 months 3 days 17 hours ago) and read 3516 times:
Quoting Nkops (Reply 1): Will NW be closing some cities after getting rid of 35 ARJ's??? If I was Mesaba I might start looking for other code-share opps.
If I were XJ there would be no "might" about it. I'd be scrambling to put jets back in the air with anybody who will take them. Unfortunately for XJ, there's probably nobody around that will take them. AA: No. UA: Possibly but more likely No. CO: Definetly not. DL: Haha that's funny. US: Definetly not. Any LCC's anybody?
LUVRSW From United States of America, joined Aug 2005, 498 posts, RR: 1
Reply 4, posted (9 years 5 months 3 days 10 hours ago) and read 3373 times:
Quoting DLKAPA (Reply 3): If I were XJ there would be no "might" about it. I'd be scrambling to put jets back in the air with anybody who will take them.
One problem...XJ doesn't own any jets, they are basicly a subcontractor for NW, with labor only being contracted...NW leases/owns the jets. XJ could approach UAL and say "We have 3500 people for you....do you have any planes for us?"
Mcdu From United States of America, joined Apr 2005, 1524 posts, RR: 17
Reply 6, posted (9 years 4 months 4 weeks 1 day 2 hours ago) and read 3214 times:
I heard a rumor UAL is considering trying to get MAIR to fly the Aspen and other old ARW 146 flying. The airplane availability is the problem since NWA has the leases and MAIR has the crews. Not sure what is in the works but it might be ex ARW 146's being sent to MAIR for the flying as UAX.
EMBQA From United States of America, joined Oct 2003, 9364 posts, RR: 11
Reply 8, posted (9 years 4 months 4 weeks 1 day 1 hour ago) and read 3162 times:
Quoting LUVRSW (Reply 4): One problem...XJ doesn't own any jets, they are basicly a subcontractor for NW, with labor only being contracted...NW leases/owns the jets. XJ could approach UAL and say "We have 3500 people for you....do you have any planes for us?"
Your only talking about a small percentage of the Mesaba fleet when you talk about the Avro's. Mesaba also have a very large number of Saab 340's which are not owned by Northwest.... and with Northwest defaulting on these payments it will make it harder for Mesaba to pay their bills.
[Edited 2005-10-03 14:33:39]
"It's not the size of the dog in the fight, but the size of the fight in the dog"
Highly doubtfu, I fail to see any commonality between XJ and WN/B6, and besides, WN and B6 probably won't expand by mergersn and aqusitions, but rather natural growth. Keep in mind thath the only company WN ever bought was Morris Air, because David Neeleman had modelled Morris Air on WN, so there were few differences in corporat culture and they operated the same aircraft.
TOLtommy From United States of America, joined Dec 2003, 3320 posts, RR: 5
Reply 11, posted (9 years 4 months 4 weeks 22 hours ago) and read 3027 times:
Quoting EMBQA (Reply 8): Mesaba also have a very large number of Saab 340's which are not owned by Northwest.... and with Northwest defaulting on these payments it will make it harder for Mesaba to pay their bills.
All of Mesaba's aircraft are leased from NW. NW owns or leases all of the Airlink aircraft. Pinnacle and Mesaba sublease all of their fleet from NW.
Ouboy79 From United States of America, joined Nov 2001, 4640 posts, RR: 22
Reply 12, posted (9 years 4 months 4 weeks 21 hours ago) and read 2968 times:
Quoting LCH (Reply 10): Keep in mind thath the only company WN ever bought was Morris Air,
You may want to research a company named TranStar, aka Muse Air. Competitor to Southwest...bought, abused, and shut down. Situation was much better than the Morris Air merger, as you could probably compare it to AA buying RenoAir.
NLINK From United States of America, joined Nov 2003, 313 posts, RR: 0
Reply 16, posted (9 years 4 months 4 weeks 13 hours ago) and read 2773 times:
The B+ planes are leased by NWA then subleased to XJ. The PX planes 360-370 are leased by 9E then subleased to XJ. The PX airplanes are old, they are the old Express I birds. The 3 A models left I think are leased directly by XJ.
Ca2ohHP From United States of America, joined Sep 2005, 955 posts, RR: 1
Reply 18, posted (9 years 4 months 3 weeks 6 days 22 hours ago) and read 2594 times:
Mesaba management should have seen this coming and prepared their company for what it is now facing. They put all their eggs in one basket - a huge risk. To top it off, they sue NW days after NW files bankruptcy.....talk about biting the hand that (has fed) feeds you.
Northwest Airlines will remove 10 Saab B+ aircraft from Mesaba's schedule as of Jan. 4.
Mair also said in a government filing that Northwest has advised Mair that it likely will be unable to meet the delivery schedule for the remaining 13 Canadair Regional Jet Aircraft that are to be delivered according to a previous agreement.