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Mon, Oct 30, 2006

Mesaba Reaches Tentative Deals With Pilots, Flight Attendants

Mechanics Still Holding Out

Finally, some good news to report for beleaguered Northwest Airlines regional carrier Mesaba... as the airline announced Sunday it has reached a tentative agreement with the unions representing its pilots and flight attendants. Both deals aim to reduce labor costs, while still keeping Mesaba's planes flying.

News of the deals comes five days after the court barred Mesaba's pilots, flight attendants, and mechanics from striking the airline. The airline has yet to reach any agreement with the third group.

Bloomberg reports Mesaba had asked the pilots for a 17.5 percent pay and benefits reduction, while the Air Line Pilots Association (ALPA) had countered with a 15 percent cut. Terms of the deal weren't released... but it's likely the TA falls somewhere in between.

Mesaba had also insisted on a 17.5 percent pay cut with its flight attendants. The airline had planned to impose that contract on them if a deal had not been reached.

"All along we have believed that consensual agreements are in the best interest of all involved -- the company, its employees and our passengers," said John Spanjers, Mesaba president and chief operating officer. "Reaching a second consensual agreement in just as many days builds on the progress we have already made in our plan to emerge successfully from restructuring."

The pilots contract must now be voted on by the union's master executive council, before it goes before voting members of the ALPA. The deal with the flight attendants will go through a similar process with the Association of Flight Attendants.

As Aero-News reported, Mesaba filed for bankruptcy protection a year ago, one month after Northwest skipped payments to the regional airline following its own foray into Chapter 11.

FMI: www.mesaba.com, www.alpa.org, www.afanet.org

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