Flights Cut in Half Between Duluth and Detroit
Commercial air service between Duluth and Detroit will be cut in half at the end of this month.
That news came Friday, the same day that Mesaba Aviation Inc., which provides three daily flights between Duluth and the Twin Cities, revealed it may file for bankruptcy protection.
Duluth relies on Northwest Airlines and its Northwest Airlink affiliates -- Mesaba and Pinnacle Airlines -- for commercial air service. Northwest filed for Chapter 11 bankruptcy protection Sept. 14, in hopes of restructuring.
Brian Ryks, executive director of the Duluth Airport Authority, expressed optimism that, like Northwest, Mesaba would continue to operate in bankruptcy.
But the carriers' financial difficulties are taking a toll on service. Northwest notified Ryks this week that Pinnacle Airlines will discontinue one of two daily flights it operates between Duluth and Detroit. The 6:25 a.m. departure to Detroit will remain, but the10:13 a.m. flight will disappear.
"Obviously, we're disappointed," Ryks said. But he observed the airline's move doesn't come as a great shock: "This reduction in service is similar to what we're seeing in other markets, as well."
After filing for Chapter 11 bankruptcy protection in September, Northwest also reduced service to Rochester, Minn., and several North Dakota cities.
"I'll feel pretty good if that's all the service we lose," said Earl Rogers, owner of Duluth Travel, adding, "Plenty of bigger cities than ours have seen larger cuts."
Rogers said he hopes Northwest doesn't discontinue service between Duluth and Detroit altogether, as the route provides useful travel options. "It gives our clients two hubs to work from," he said.
Ryks said the number of daily flights into and out of Duluth will slip from nine to eight when Pinnacle reduces its service. As of November, Duluth travelers will have access to one Detroit route, and seven Twin Cities flights, four of them courtesy of Northwest Airlines' own planes.
Duluth International Airport's passenger loads remain strong, Ryks said. Although the airport operated most of last year with service to Chicago via American Eagle, its passenger count to date is down just 1.7 percent, without the carrier.
Northwest and its affiliates remain an important source of airport revenue. Ryks said monthly payments generate $41,000 from Northwest, $7,000 from Mesaba and $3,100 from Pinnacle. Pinnacle's reduced schedule will cut its airport fees in half.
Mesaba and Pinnacle assist Northwest by picking up passengers in small cities, such as Duluth, funneling travelers into the larger airline's hubs. Northwest sets its partners' schedules, books their passengers, provides most of their planes and serves as their primary source of revenue.
But since entering bankruptcy, Northwest has failed to make several scheduled multi-million-dollar payments to Pinnacle and Mesaba.
"Mesaba is focused on reducing all areas of its cost structure, but will incur substantial losses in the third and fourth fiscal quarters," said Mesaba's parent company, MAIR Holdings Inc., 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."
Northwest has told Mesaba it will remove 10 Saab B+ aircraft on Jan. 4, and that it probably won't be able to deliver 13 more Canadair Regional Jets on time, according to the filing. Northwest also intends to take away Mesaba's 35 Avro Regional Jets, nine of which were scheduled for removal on Oct. 31.
MAIR also runs Big Sky Transportation Co., a Billings, Mont.-based regional airline. Mesaba is its largest holding.
MAIR's stock rose 6 cents in trading on the Nasdaq Market Friday, closing at $5.32 per share. It traded around$9.50 last month before Northwest filed for bankruptcy protection.
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