Northwest Airlines has been making some moves lately that will help strengthen the company and help it emerge from bankruptcy protection mid 2007. Right before Christmas Northwest released a statement saying that they have reached a 10 year deal with Pinnacle Airlines. Pinnacle will operate 141 small jets for Northwest Airlines. Pinnacle is still working with their pilots to reach a deal, if no deal is met, it could jeopardize at least 17 new jet deals with the airline. The new 10 year contract calls for Pinnacle to operate 124 of their 50 seat Canadian Regional Jets already in their fleet.
Northwest is also making news on the Mesaba Airlines front. Mesaba is another one of Northwest Airline’s regional feeder carriers. Mesaba has had troubles with their labor groups and just recently reached a deal with the management. Northwest is looking to acquire the company and cut out the middle man. Mesaba President John Spanjers disclosed the talks in a letter to employees last week along Northwest spokesman Bill Mellon saying that NWA wants to wrap up the deal in the “near future.”
The lines between Mesaba and Northwest Airline’s new regional carrier Compass Air could become blurred as both companies could be operating under the NWA banner before NWA exits bankruptcy protection middle of next year. This move really does not surprise me. It is classic NWA mentality. Let Mesaba’s parent company handle the messy contract negotiations and then come in after all that is settled and acquire the company, eliminating the middleman that handled all the messy stuff. It is a wise business move but something that could further sour management/employee relations at a company that is already known for hostile relationships.
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