Pushed To Liquidation, Mesaba Asks To Cut Wages

Law360, New York (October 2, 2006, 12:00 AM EDT) -- Saying it will soon run out of cash, bankrupt Mesaba Airlines Inc. is again asking a court to allow it to void its collective bargaining agreements and cut wages for about 1,500 unionized workers by more than 19%.

In a court filing Friday, the Minnesota-based regional carrier said it is losing $1 million a week, and will be forced to liquidate if it doesn’t reach labor agreements by Oct. 15. The airline cannot access its debtor-in-possession financing until it has agreements in place.

The airline says...
To view the full article, register now.