Northwest Agrees To Acquire Mesaba

Northwest Airlines this week reached an agreement to acquire regional feeder Mesaba Airlines, enabling Northwest to co-sponsor Mesaba's plan of reorganization as both carriers seek to exit bankruptcy.

Northwest in a statement confirmed that "an agreement has been negotiated by representatives of Northwest Airlines, Mesaba Airlines, and (Mesaba's) Unsecured Creditors Committee and there are no significant open issues requiring further negotiation."

The deal largely would be for financial and bankruptcy-exiting purposes, said a Northwest spokesperson today, adding that it would not impact regional service.

"Northwest believes that having Mesaba as part of the Northwest family is the preferred way to operate the NWA Saab 340 fleet," Northwest said in a statement. "The agreement would allow Northwest to continue to offer its current level of service to a number of communities that depend on the Saab fleet to provide convenient connections to Northwest's global network."

At least one shareholder for MAIR Holdings, Mesaba's parent, said the $145 million proposed is "grossly inadequate," according to an filing late last month.

Northwest, however, is encouraging stakeholders to approve the deal. "Northwest believes that the proposed transaction would be in the best interest of Mesaba's creditors, its employees, and the many customers who depend on Mesaba," Northwest said in a statement, adding that the bankruptcy court must also give the nod. Northwest said it intends to file its plan of reorganization by Jan. 16.