MESABA AIRLINE PILOTS REACH TENTATIVE CONTRACT

Eagan, MN-based Mesaba Airlines, a regional partner of Northwest Airlines, announced Jan. 11, that it had reached a tentative contract agreement with its pilots union, narrowly averting a strike. Talks between the carrier and its 844 pilots, represented by the Air Line Pilots Association (ALPA), had dragged on for two-and-a-half years.
Although details of the pact were not immediately available, Tom Wychor, chairman of the Mesaba pilots unit of ALPA, told the Minneapolis/St. Paul StarTribune that it “satisfies the pilots’ requirements for strong job security, improved work rules, appropriate pay, and a solid retirement plan.”

CAL’s BETHUNE TO RETIRE

Continental Airlines (CAL) announced Jan. 16, that Chairman and Chief Executive Officer Gordon Bethune, the longest-standing CEO at a major US airline, will retire at the end of 2004—earlier than originally planned—and will be succeeded by CAL President Larry Kellner. The airline also said four members of its board of directors—including David Bonderman, with whom Bethune had often feuded over corporate issues—would not stand for re-election, and board size would shrink to 10 directors from 14.
Kellner, who joined the airline in 1995 as senior vice president, was named president and elected to the board in May 2001 and was given additional responsibilities of chief operating officer in May 2003. He will succeed Bethune on Jan. 1, 2005.

US AIRWAYS CONSOLIDATING SUBSIDIARIES

US Airways Group announced Jan. 14, that in order to use its aircraft more efficiently and save money, it plans to consolidate two of its wholly owned subsidiaries in the US Airways Express network. Some jobs would be lost in the consolidation of Allegheny Airlines and Piedmont Airlines by the end of March, the airline said. Allegheny, based in Harrisburg, PA, employs 1,400 people, while Piedmont, based in Salisbury, MD, has nearly 2,100 employees.
The two carriers each currently operate 41 Dash-8 turboprops, but US Airways plans to phase them out to make room for regional jets. Some of Allegheny’s aircraft lease agreements are expiring and not being renewed, and after the consolidation, Piedmont will operate the company’s entire Dash-8 fleet. US Airways also is considering whether to sell assets like its East Coast shuttle in order to stay viable in the face of mounting competition from low-cost carriers.
“Turboprop aircraft will still have a role in our network,” US Airways Express President Bruce Ashby said, “but it is inefficient to have two wholly owned Dash-8 [aircraft] operators with duplicative overhead functions for a shrinking part of the company.”

MESA ORDERS 20 CRJs

Bombardier Aerospace confirmed late in January, that Phoenix-based Mesa Air Group (MAG) has placed a firm order for a total of 20 Canadair Regional Jets (CRJs). The $637 million order represents the conversion of 20 of 40 options Mesa holds on CRJ700 and CRJ900 aircraft, with the model mix of deliveries yet to be determined.
Mesa Air Group currently operates a total of 158 aircraft, including 43 CRJ200s, 15 CRJ700s and 11 CRJ900s. In addition, a further 11 CRJ200s from Midway Airlines will soon join its fleet. MAG operates in the West and Midwest as America West Express; in the Midwest and East as US Airways Express; in Denver as United Express; in Kansas City as Midwest Express; and in New Mexico and Texas as Mesa Airlines.

CHAUTAUQUA AIRLINES EARNS ATW HONOR

Air Transport World (ATW) magazine recently named Chautauqua Airlines its 2004 Regional Airline of the Year. The Indianapolis-based carrier, a partner of American Airlines, Delta Air Lines, and US Airways, was cited for its ability to sustain profitability since 2000 while its traffic since 1999 has grown more than 900 percent.
The magazine named Australia’s Qantas Airlines its Airline of the Year and gave Delta its Airline Technology Leadership Award. All awards were scheduled for presentation Feb. 23, at ATW’s Gala Awards Dinner at the Swissotel Singapore.

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