The US Bankruptcy Court confirmed Mesaba’s reorganization plan in preparation for its emergence from bankruptcy later this month. The ruling means the plan is acceptable to creditors and satisfies requirements of the bankruptcy code. Mesaba intends to exit from Chapter 11 bankruptcy protection the final week of April when the reorganization plan becomes effective and the acquisition by Northwest Airlines (NWACQ) is completed. Related Story
"Today’s confirmation of our plan by the Bankruptcy Court validates 18 months of work to make Mesaba a sustainable regional carrier, positioned to become a wholly-owned subsidiary of Northwest Airlines," said John Spanjers, Mesaba president and COO. "We are capable of great things moving forward and that’s been demonstrated by the exceptional commitment and professionalism of our employees during this difficult time in our history.”
The plan implements the stock repurchase and reorganization agreement with Northwest struck earlier this year through which the regional would become a subsidiary of the major carrier. The restructuring reduces costs by $68 million annually and secures its core business as a Northwest Airlink flying 49 Saab 340s. It also reconfirms Northwest’s plans for Mesaba to launch Bombardier (BBD) CRJ 900 operations with the 36 ordered by the major carrier last year. Related Story  Mesaba is moving quickly through the Federal Aviation Administration certification and training process to begin operating the first of 36 CRJ 900s for Northwest.
“Mesaba employees have made a considerable sacrifice to achieve this cost structure,” Spanjers said. “We are now pleased to be in a position to recall a number of our furloughed team members and provide opportunity for all employees with the addition of the CRJ900 to our fleet.”