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NW Wants To Buy Mesaba

Fri Nov 03, 2000 1:06 am

The Twin Cities media is reporting today (2 Nov) that NW wants to buy its commuter affiliate, Mesaba Aviation. Northwest already owns 30% of the outstanding shares. Carl Pohlad, majority owner of the Minnesota Twins, owns a big portion of the rest. Mesaba and NW declined to comment beyond the announcement. Mesaba has one hell of an operation, providing extensive and reliable feeder service to NW at both MSP and DTW. Recently, the issue had come up about Mesaba's stock price and growth opportunities, as its growth is 100% tied to Northwest, and it pretty much has all the commuter markets to MSP and DTW already covered. I believe this purchase announcement is in response to that issue.
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RE: NW Wants To Buy Mesaba

Fri Nov 03, 2000 1:48 am

Is there any speculation (if this happens) what would happen to the AVROs? For some reason, someone on another board seemed certain that they would go away. I don't know if they meant as a direct result of the buyout or what. I really like the AVRO and would hate to see it disappear from my airport. Of course, if it were replaced by a DC9, that would be easier to take, but I fear that Saabs or, less-painfully, CRJs would replace them. Thanks for any info. BTW, my airport is FWA.

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RE: NW Wants To Buy Mesaba

Fri Nov 03, 2000 1:55 am

I personally don't think the AVRO's would go away. I like the AVRO's as well.
An unexamined life isn't worth living.

RE: NW Wants To Buy Mesaba

Fri Nov 03, 2000 2:01 am

It's logical following DL's acquiring of Comair and ASA, two airline's whose fortunes were directly tied to the the US' #3 carrier.

DL, however, also was concerned with having control over the regional's ability to introduce CRJ operations quickly. By buying the two firms and infusing tremendous amounts of capital, the newly created subsidiary Delta Connection Inc. was able to lodge a significant order with Bombardier. (what 4 billion?)

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RE: NW Wants To Buy Mesaba

Fri Nov 03, 2000 2:19 am

Mesaba's Avro's can't go away. They do seasonal service to Aspen, Colorado. The BAe 146 family of aircraft is the only large plane that can get out of ASE with anything resembling a large load of people. That has to do with performance based on one engine being inoperative.

What would NW buying Mesaba do to its pilot group? I read an article the other day that made a good point. It was addressing Delta's acquisition of Commair and ASA. It basically said that the pilot's for the major's hate RJ's because they drag down the overall salary of the industry. Instead of fighting the regional's through scope clauses, they should fight to make the regionals part of the major's. Then they can unite and fight for better salaries as one group of pilot's. That step would go a long ways towards making the guys at the majors happier about the influx of RJs.

Thoughts anyone?

RE: NW Wants To Buy Mesaba

Mon Nov 06, 2000 7:19 am

Mesa Air Group had already expressed intered in Mesaba; perhaps this sparked Northwest's move.

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RE: NW Wants To Buy Mesaba

Mon Nov 06, 2000 7:38 am

When Delta bought the remainder of Comair and ASA, my understanding was that they are subsidiaries, and therefore have separate books, ops, and most importantly - separate seniority lists for pilots and FAs. Is this correct?

If so, then NW shouldn't have a problem getting Mesaba. Would Express I be the next step?
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RE: NW Wants To Buy Mesaba

Mon Nov 06, 2000 11:08 am

NW already owns Express I

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