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Published on 10/30/2006 in the Prospect News Distressed Debt Daily.

Mesaba reaches tentative contract agreements with pilots, flight attendants

By Caroline Salls

Pittsburgh, Oct. 30 - Mesaba Aviation, Inc. has reached tentative contract agreements with its flight attendants, represented by the Association of Flight Attendants - CWA, and its pilots, represented by the Airline Pilots Association, according to company news releases.

The flight attendants' agreement is subject to approval by Mesaba's AFA-represented employees and supports the airline in meeting its required reduction in annual labor costs, the release said.

"We appreciate the hard work of the flight attendants' representatives in reaching this deal," Mesaba president and chief operating officer John Spanjers said in a release.

"We have been in non-stop negotiations the past few days that have resulted in a solution that works for the company and the flight attendants."

The pilots' agreement, which is subject to approval by the union's master executive council and by Mesaba's ALPA-represented employees, also assists the airline in meeting its required reduction in annual labor costs.

"All along we have believed that consensual agreements are in the best interest of all involved - the company, its employees, and our passengers," Spanjers said in a release.

"This has been a challenging process and we appreciate ALPA's efforts in working toward a solution. We look forward to continuing to work together to ensure Mesaba emerges successfully from bankruptcy and is positioned for growth."

According to a flight attendants' union news release, their tentative agreement allows both parties to move forward while management navigates the airline out of bankruptcy.

"After a long battle, we are glad to reach an agreement that will allow flight attendants to continue to work at Mesaba," master executive counsel president Tim Evenson said in the union release.

"We fought to ensure that flight attendants would not bear the full burden of our airline's recovery, but we are willing to do what it takes to make sure that our company is successful once again."

The flight attendants' tentative concessionary agreement will be reviewed this week by the master executive council.

If approved, the tentative agreement will then go to the membership for ratification.

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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