Delta Sells Mesaba, Compass Regional Airlines - Business Travel News

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Delta Sells Mesaba, Compass Regional Airlines

July 01, 2010 - 03:25 PM ET

By Jay Boehmer

Delta Air Lines today unloaded for more than $82 million two regional airline subsidiaries that it picked up during its merger with Northwest Airlines, though the carrier said it would continue to use both Mesaba and Compass Airlines as regional affiliates. The carrier said it would use the proceeds of the sale to fund "general corporate purposes."

Delta is selling Mesaba to Memphis, Tenn.-based Pinnacle Airlines Corp. for $62 million and Compass to St. Louis-based Trans States Holdings for $20.5 million. The sales leave Comair as Delta's last remaining wholly owned regional airline subsidiary.

"Comair was considered by interested parties during the exploratory sale process," a spokesperson said. "However, no offers were made by these interested parties to purchase Comair." The spokesperson, however, said Delta would "continue to explore alternatives" for Comair.

Delta said it is entering into new Delta Connection agreements with Mesaba and Compass for regional operations, noting that the sale would not impact routes or flight schedules. "Compass and Mesaba's combined fleet of nearly 130 aircraft will continue to be dedicated to flying Delta routes," the carrier said.

Delta Connection senior vice president Don Bornhorst in a statement today said, "In recent years, the Delta Connection carriers have made substantial progress in creating a consistent customer experience across our brand with more First Class cabins, enhanced food service, jetbridge boarding and other amenities Delta customers expect when they fly Delta or Delta Connection flights. This transaction is another step in positioning our regional airlines for future success and we look forward to delivering even more improvements to customers in the more than 260 communities our partners serve."

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