Mesaba Reorganization Approved

 - April 30, 2007, 10:23 AM

Mesaba Airlines expected to exit bankruptcy during the last week of April, following the approval of its reorganization plan by U.S. Bankruptcy Judge Gregory Kishel. The Minneapolis-based Northwest Airlines affiliate filed for Chapter 11 bankruptcy in October 2005, a month after the major airline itself filed for Chapter 11 and defaulted on its service contract payments to Mesaba. The regional airline’s reorganization plan details cost-cutting measures worth $68 million a year and includes its sale to Northwest for a $145 million bankruptcy claim, which it has since sold to Goldman Sachs for $125 million. According to the company, it continues to move quickly through FAA certification and training processes in preparation for the summer launch of Bombardier CRJ900 service for Northwest Airlines.