Back To The Bargaining Table

ANN REALTIME UPDATE 05.18.06 1900 EDT: For the second time in a month, a bankruptcy court judge has rejected an airline's request to toss out its existing contracts with union workers in order to impose pay cuts. Just minutes ago, Judge Gregory Kishel ruled that Mesaba Airlines cannot reject contracts with its pilots, flight attendants, and mechanics.

"Clearly, the parties can -- and should -- continue efforts toward a consensual resolution," Judge Gregory Kishel wrote in his order.

The ruling -- as well as the judge's strong suggestion for Mesaba and its workers to return to the bargaining table -- comes four weeks after a similar ruling involving Delta subsidiary Comair. That carrier had requested permission to dump existing contracts with its flight attendants.

Mesaba and its pilots have expressed hope they can still make a deal. Less certain are negotiations between the carrier, and its flight attendants and mechanics.

Original Report

The next few days could either make-or-break Mesaba Airlines, as a bankruptcy judge is expected to rule whether the feeder carrier for Northwest Airlines will be allowed to reject its union contracts.

In what has become an all-too-familiar predicament, unions representing Mesaba's pilots, mechanics, and flight attendants have threatened to strike the regional airline if Judge Gregory Kishel makes such a decision -- a move Mesaba believes would be illegal.

Airline spokesperson Elizabeth Costello told the Associated Press the airline would seek a court order to stop such a strike, should it become necessary.

If recent events serve as an example, though, perhaps such a move won't be necessary. Just last month, a judge denied a similar request by Comair, the regional subsidiary for Delta Air Lines, to toss aside its union contract with flight attendants. As Aero-News reported, the judge ordered both parties back to negotiations.

Last minute deals have also been reached between pilots at Delta and Northwest and their respective airlines, halting their talks of strikes -- at least temporarily. Northwest's pilots approved their new agreement earlier this month; Delta's pilots are expected by many analysts to do the same, when they vote on their own pay cut deal next week.

Even if a strike is averted, however, the recent volatility of Mesaba's situation comes at a very bad time for the airline, as it fights to hold onto business for Northwest -- which is planning to launch its own regional subsidiary, Compass, in the near future -- as well as attract new business from such airlines as Continental.

Those negotiations haven't gone well for Mesaba so far, with Continental rejecting the carrier's bid due to high costs, and Northwest stating it will cut Mesaba's fleet -- which currently includes Avro RJ85 (above) and Bombardier CRJ200 regional jets -- to just 49 Saab 340 turboprops (right), which are seen by many passengers as a less attractive alternative.

That could mean that Mesaba -- which has flown for Northwest since 1984 -- could be in danger of being marginalized, anyway, regardless of how the judge's decision plays out.

FMI: www.mesaba.com