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Published on 11/27/2006 in the Prospect News Distressed Debt Daily.

Mesaba pilots, flight attendants and mechanics ratify new contracts

By Caroline Salls

Pittsburgh, Nov. 27 - Mesaba Aviation, Inc.'s pilots, flight attendants and mechanics have all ratified their tentative collective bargaining agreements that reduce labor costs by 15%, according to a union news release.

The pilots are represented by the Air Line Pilots Association, International, the flight attendants by the Association of Flight Attendants-CWA and the mechanics by the Aircraft Mechanics Fraternal Association.

The pilots' agreement passed by 68.35%, with 89.7% of eligible union members voting; the flight attendants' agreement passed by 81.9% percent, with 64% of eligible members voting; and the mechanics' agreement passed by 64.8%, with 82% of eligible members voting.

"We hope that the sacrifices we have made will allow our airline to exit bankruptcy and return to profitability," AFA-CWA Mesaba Master Executive Council president Tim Evenson said in the union release.

According to the release, Mesaba originally attempted to impose cuts of 19.4% and health insurance increases of up to 66%.

With new consensual agreements slated to take effect Dec. 1, the Mesaba Labor Coalition said in the union release that it expects that Mesaba will be able to successfully emerge from bankruptcy next year.

"Reaching this point has been difficult and complex; yet throughout this process, Mesaba employees have exemplified the true commitment and professionalism that makes Mesaba the exceptional airline it is," Mesaba president and chief operating officer John Spanjers said in a company news release.

"The pilots, flight attendants and mechanics along with every single Mesaba employee, are making a considerable sacrifice to ensure the survival of this company and I am confident we will see brighter days ahead."

Mesaba, an Eagan, Minn.-based Northwest Airlines affiliate, filed for bankruptcy on Oct. 13, 2005 in the U.S. Bankruptcy Court for the District of Minnesota. Its Chapter 11 case number is 05-39258.


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