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Oct 4
Northwest Airlines to Buy New Aircraft; Mesaba In Trouble
In a move to replace their aging fleet, Northwest Airlines is in talks to place a large order with Brazil's Embraer and Canada's Bombardier Inc.  NWA is looking to replace 105 aging DC9 aircraft, and it is looking to purchase more planes for its low-cost subsidiary, CompassAir, to do its regional flying. 

The most likely scenario, observers say, is that Northwest places the larger, 100-seat ERJ190/195s at its main operation, while the smaller 70-90 seat Bombardier CRJ700/900s will be used by CompassAir. 

NWA DC-9 REARrrrrr.jpgThis could be bad news for regional partner for NWA, Mesaba Airlines.  Their employees have offered to keep the company alive after proposing a 15 percent pay cut for the next three years and giving up more benefits, but that is well short of what the company said it needs to even have a chance to bid on NWA routes. 

"Mesaba will not only be able to reorganize and exit successfully from bankruptcy with the level of cuts offered by the unions, but it would also achieve profit margins that substantially exceed those of previous years," the unions said in a written statement.

Mesaba Airlines flies only for NWA and also leases planes from the company.  The company only has around $10 million dollars in cash on hand and is bleeding a $1 million dollars a week. 

WCCO.com

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