Mesaba Says Crisis Could Come Within Six Weeks

Mesaba Airlines management warned Friday that it must secure concessionary deals with its unions in the next two to six weeks or face a cash crisis that could trigger liquidation, according to the pilots union at the carrier.

"The employees are looking at the choice of personal liquidation or corporate liquidation," said Tom Wychor, chairman of the Mesaba pilots union. "This pilot group will not ratify a substandard agreement that will undercut their futures in the industry, whether at Mesaba or somewhere else."

He added that the pilots want to do a deal and have offered Mesaba labor savings of 14 or 15 percent.

In December, bankrupt Mesaba asked for 19.4 percent labor cuts from its pilots, flight attendants and mechanics.

On Wednesday, U.S. District Judge Michael Davis in Minneapolis reversed a bankruptcy judge's ruling that gave management the power to void labor contracts and impose concessions. The decision has created a new urgency for Mesaba to secure deals.

"We are focused on negotiations, but we are also reviewing all of our legal options," Mesaba spokeswoman Elizabeth Costello said. She did not comment on the amount of time that Mesaba has left before facing the possibility of liquidation.

Costello said top management met with leaders of the pilots and flight attendants unions Friday and will have a similar session with the mechanics union Monday.

"We wanted to share with them the detailed financial information about the serious situation of the company," Costello said.

No talks have been held with the pilots union in about six weeks, and Wychor said his group is waiting for a better offer from the company before resuming talks. The last negotiations with the flight attendants were held in June, and the airline last bargained with the mechanics in mid-July.

Mesaba operates many regional flights for Northwest Airlines and provides the only commercial air service for some Minnesota cities.

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