Mesaba labor groups call for removal of top executives

By Caroline Salls

Pittsburgh, Feb. 7 - Mesaba Aviation, Inc.'s pilots, flight attendants and mechanics are calling for the removal of top executives at Mesaba Airlines and parent Mair Holdings, Inc. in an overwhelming vote of no confidence, saying they don't believe top management has acted in the airline's best interest, according to a Mesaba Labor Coalition news release.

According to the release, a decision to transfer virtually all of Mesaba's profits to Mair Holdings has put the employees' careers, livelihood and futures at risk.

The release said management is seeking bankruptcy court approval to reject the pilot, flight attendant and mechanic contracts, and has proposed deep wage and benefit cuts.

"This management team has acted shamefully and it's about time the public knows what we know," flight attendant and vice president of Mesaba's Association of Flight Attendants unit Carla Rogat said in the release.

"Mesaba and Mair executives are bleeding this airline dry without regard for anyone or anything but their own financial gain."

Alleged issues prompting the vote of no confidence include:

• Mesaba Airlines generates more than 95% of Mair Holdings' revenue, and virtually all of Mesaba's profits have been transferred to Mair Holdings, which had $120 million in cash and equivalent assets when Mesaba filed for bankruptcy;

• Mair Holdings began to siphon off Mesaba's profits in late 2002 when it used Mesaba's earnings to purchase Big Sky Airlines.

According to the release, Mair said Big Sky would become the holding company's "growth vehicle" because of its low labor costs, and MAIR executives actively pursued growth via Big Sky, but were not successful in winning any new business.

In addition, the labor council said Big Sky has been consistently unprofitable since its purchase, yet it is not in bankruptcy; and

• Despite the failed growth strategy, Mair Holdings executives have rewarded themselves with salaries, bonuses and stock options at levels that exceed their peers at both regional and mainline carriers.

"We agree that Mesaba needs to restructure," Aircraft Mechanics Fraternal Association negotiating chairman Kevin Wildermuth said in the release, "but labor is not the problem at Mesaba. In today's environment, Mesaba cannot subsidize an expensive holding company and an unprofitable airline subsidiary."

The labor groups said they will highlight their complaints through a series of picketing demonstrations.

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

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