U.S. Bankruptcy Court Ruling Blocks Job Actions by Mesaba Airlines’ Workers
Mesaba Airlines, a subsidiary company of MAIR Holdings (NASDAQ:MAIR), said today that the Honorable Gregory Kishel of the United States Bankruptcy Court for the District of Minnesota granted the company’s request for a preliminary injunction to prevent a threatened strike or work action by the company’s flight attendants, represented by the Association of Flight Attendants (AFA), pilots, represented by the Airline Pilots Association (ALPA) and/or mechanics, represented by the Aircraft Mechanics Fraternal Association (AMFA).
“Judge Kishel’s decision to grant Mesaba the injunction allows our customers to continue their travel plans on Mesaba Airlines with assurance, knowing we will get them to where they’re going reliably,” said John Spanjers, president and chief operating officer. “At the same time, we will continue our efforts to negotiate consensual agreements with our mechanics, pilots and flight attendants. We hope to accomplish that goal yet this week before it becomes necessary to impose terms on Thursday, October 26. We have worked diligently to address the unions’ concerns and are hopeful they will come forward now and address the company’s needs.”
In the event the company must impose terms on Thursday, October 26, it plans to continue negotiations in order to find a solution that ensures the company is positioned to emerge successfully from bankruptcy and that works for employees. “We recognize the valuable contributions of our employees and that consensual agreements are in the best interest of everyone involved here,” Spanjers said.
Mesaba has reached agreements on permanent wage and benefit reduction agreements with the Transport Workers Union (TWU). Today’s ruling does not impact Mesaba’s operations or its obligations to Northwest or to its passengers – Mesaba intends to fly its full schedule.
In order to access Mesaba’s debtor-in-possession (DIP) financing loan with Marathon Asset Management, the company must achieve labor cost savings either through tentative agreements or imposition of new terms. The DIP loan is essential to fund Mesaba’s daily operations and to help restructure its business.
Mesaba operates as a Northwest Jet Airlink and Airlink partner under service agreements with Northwest Airlines. The airline serves 88 cities in the United States and Canada from Northwest’s and Mesaba Aviation’s three major hubs: Detroit, Minneapolis/St. Paul, and Memphis. Mesaba Aviation operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69-passenger Avro RJ85, the 34 passenger Saab SF340, and the 50-passenger Canadair Regional Jet. Mesaba filed for Chapter 11 bankruptcy protection on October 13, 2005, and continues to operate as a debtor-in-possession. Mesaba maintains a web site at www.mesaba.com.
Mesaba Airlines is a wholly owned subsidiary of MAIR Holdings, Inc. MAIR Holdings, Inc. is traded under the symbol MAIR on the NASDAQ National Market.
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