Mesaba loses attempt to reject collective bargaining agreement but can refile

New York, May 18 - Mesaba Aviation, Inc. said the U.S. Bankruptcy Court for the District of Minnesota denied its 1113(c) motion to reject its collective bargaining agreements with its mechanics, flight attendants.

Mesaba said it will meet with unions to address their concerns about the bankruptcy and continue to seek consensual agreements.

"While we're disappointed in the delay, [bankruptcy] judge [Gregory] Kishel states that if the unions do not recognize the dire financial condition of the company, Mesaba can re-file the motion and it will be heard promptly," the company said in a statement.

It noted that the court found its core business assumptions to be "reasonable and necessary" including the 19.4% labor cost concessions over six years.

Mesaba said its motion was denied only due to its failure to provide a working financial model to the unions and its modeling of workforce attrition.

These limited issues either already have been addressed or will be shortly, the company added.

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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