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Mesaba considers Chapter 11

Mesaba considers Chapter 11
By JOHN SKIPPER, Of The Globe Gazette
Publsihed: Saturday, October 8, 2005 12:59 AM CDT

MASON CITY — Mesaba Airlines, the regional carrier for Northwest Airlines that serves Mason City Municipal Airport, is considering filing for bankruptcy.

“Mesaba is focused on reducing all areas of its cost structure, but will incur substantial losses in the third and fourth fiscal quarters,” a spokesman for MAIR Holdings Inc., Mesaba’s parent company, said in a filing with the Securities and Exchange Commission.

“Mesaba is considering all options available to it, including a court supervised restructuring under Chapter 11 of the Bankruptcy Code,” the spokesman said.

Mesaba cited reduced passenger levels on its flights.

Mesaba is the carrier for all commercial flights in and out of the Mason City Municipal Airport.

Pam Osgood, airport manager, said Friday, “I have not received any confirmation from Mesaba that they will formally file (for bankruptcy). I will be monitoring this situation carefully and if further details are released I will comment at that time.”

Mesaba flies into small cities such as Mason City and Fort Dodge under the Northwest Airlink name. It gets its schedule, passengers, planes and revenue from Northwest, which filed for Chapter 11 protection on Sept. 14. Northwest has said it will shed unprofitable routes.

Mesaba is MAIR’s largest business, although it also runs Big Sky Transportation Co., a Billings, Mont.-based regional airline.

The Associated Press contributed to this report.


LINK: http://www.globegazette.com/articles/2005/10/08/local/doc43473e5ece110990604613.txt