MAIR Holdings (MAIR) is concentrating on its only remaining platform, Big Sky and growing its Beech 1900D operation to double its current size with the addition of eight additional former Commutair aircraft for its new Boston Delta (DAL) Connection operation. Big Sky, based in Billings, Mont., currently serves 24 communities in 10 states with the 1900Ds in code-sharing relationships with Northwest Airlines (NWA), Alaska Airlines (ALK),Horizon Air  and US Airways (LCC).
The company also said it is exploring other business opportunities, but narrowed is explorations from both inside and outside the airline industry as previously announced to focus solely on airline opportunities. The opportunities will be evaluated against the value of returning money to shareholders.
MAIR Holdings  posted a $1.2 million net loss for its fiscal fourth quarter ended March 31 compared to the $54.1 million loss in the year-ago period when still owned Mesaba Airlines, which was acquired by Northwest earlier this year. Related Story  The closing for the stock purchase occurred on March 12, 2007, at which time MAIR paid Northwest $4.25 per share, or approximately $24 million, and Northwest returned all of the shares to MAIR for cancellation. Northwest’s warrant to purchase additional shares of MAIR’s stock was also canceled on that date. MAIR still owes Northwest the remaining $2.00 per share, or approximately $11.3 million, which must be paid by October 22 or the date on which MAIR receives at least $25 million in distributions from Mesaba’s bankruptcy estate.
MAIR posted a loss of $2.8 million fourth quarter net loss at Big Sky, attributing it to additional expenses the company recorded in connection with Mesaba’s bankruptcy. Big Sky’s losses were impacted by the return of its Metro aircraft fleet and startup expenses for the new Boston route expansion with and seasonally reduced travel typical in the quarter.
“The fourth quarter of fiscal 2007 marked the culmination of 18 months of effort to resolve Mesaba’s bankruptcy,” said Paul F. Foley, MAIR’s president and chief executive officer. “As a result, during fiscal 2008, the company could receive up to $44 million in cash distributions from Mesaba’s bankruptcy estate.”
For its fiscal year the loss reached $7.4 million compared to a net loss of $82.8 million in fiscal 2006. In fiscal 2006, MAIR recorded a $40 million loss in its equity position in Mesaba and a $50.2 million impairment charge primarily owing to the Northwest bankruptcy and subsequent Mesaba bankruptcy. As of March 31, Mesaba reported a net loss of $71.3 million.
Big Sky operating revenues for Fiscal 2007 reached $23.9 million, up 17.2 percent owing to a 20.3 percent increase in the average fare. Operating expenses for the fiscal year were $38.6 million, $28.8 million of which related to Big Sky and $9.9 million to the MAIR Holding.
Unit revenues for Big Sky were was up 8.4 percent for the fiscal year to 28.5 cents per available seat mile because of the air fare increase. Fiscal year unit costs were down 5.2 percent to 34.4 cent per ASM from charges in FY2006 and reduced aircraft costs. Passenger counts were down 0.5 percent and load factor was down 2.4 points to 39 percent year over year. ASMs increased 7.8 percent 83,829 and RPMs increased 1.4 percent to32,656. Cash and investments on hand total $66 million with an additional claim against Mesaba of $94 million.