MINNEAPOLIS (AFX) - Regional airline Mesaba Aviation Inc. said Friday a bankruptcy judge gave it permission to reject the labor contracts of its flight attendants, pilots and mechanics.
Mesaba, a subsidiary of MAIR Holdings Inc., must give 10 days notice before rejecting the workers' contracts and imposing new terms, ruled Gregory Kishel of the U.S. Bankruptcy Court for Minnesota. The airline has been fighting recently to cut costs, as the overall industry battles ever-rising fuel costs.
Mesaba, which operates as a regional carrier for Northwest Airlines, said it prefers to cut its labor costs through consensual negotiations. But if it does reject the contracts, it said it will impose its most recent proposals made to the work groups.
'Northwest Airlines' bankruptcy and its subsequent actions, along with the continuing distress impacting the entire industry, require us to take sweeping measures to secure Mesaba's future,' said Mesaba President John Spanjers.
The carrier has already reached agreements on wage and benefit cuts with the Transport Workers Union. It still is working on cuts with the Association of Flight Attendants, Airline Pilots Association and Aircraft Mechanics Fraternal Association.
Mesaba shares closed down 2 cents at $5.62 on the Nasdaq.
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