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Published on 10/24/2006 in the Prospect News Distressed Debt Daily.

Mesaba granted preliminary injunction to prevent threatened strike

By Caroline Salls

Pittsburgh, Oct. 24 - Mesaba Aviation, Inc. was granted a preliminary injunction to prevent a strike threatened by its flight attendants, pilots and mechanics, according to a company news release.

The flight attendants are represented by the Association of Flight Attendants, the pilots by the Airline Pilots Association and the mechanics by the Aircraft Mechanics Fraternal Association.

"Judge [Gregory] Kishel's decision to grant Mesaba the injunction allows our customers to continue their travel plans on Mesaba Airlines with assurance, knowing we will get them to where they're going reliably," president and chief operating officer John Spanjers said in the release.

"At the same time, we will continue our efforts to negotiate consensual agreements with our mechanics, pilots and flight attendants.

"We hope to accomplish that goal yet this week before it becomes necessary to impose terms on Thursday, Oct. 26."

If the company must impose contract terms on Thursday, Mesaba said it plans to continue negotiations in order to find a solution that ensures the company is positioned to emerge successfully from bankruptcy and that works for employees.

In order to access its debtor-in-possession financing with Marathon Asset Management, the company said it must achieve labor cost savings either through tentative agreements or imposition of new terms.

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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