Mesaba requests court approval for $2.1 million employee compensation plan

By Jennifer Lanning Drey

Portland, Ore., Dec. 13 - Mesaba Aviation, Inc. requested court approval to pay certain employees a total of up to $2.1 million in aggregate benefits in 2007 through its performance incentive compensation plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Minnesota.

According to the company, the benefits included in the plan are consistent with its pre-bankruptcy incentive practices and are designed to encourage employees to work to achieve more efficient operations for the company and to remain employed by the company.

Mesaba said any delay in paying the 2007 benefits would adversely impact the company's relationship with the employees and irreparably impair their morale and dedication.

A hearing is scheduled for Jan. 2.

Mesaba, an Eagan, Minn.-based Northwest Airlines affiliate, filed for bankruptcy on Oct. 13, 2005. Its Chapter 11 case number is 05-39258.

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