Mesaba to Buy Regional Carrier
Mesaba Holdings to Buy Regional Carrier Big Sky for $3.5 Million in Cash
Thursday September 26, 9:42 pm ET

MINNEAPOLIS (AP) -- Mesaba Holdings Inc., a regional air carrier affiliated with Northwest Airlines, said Thursday it would buy Big Sky Transportation Co. for about $3.5 million in cash.

Big Sky, based in Billings, Mont., provides regional air service to 20 cities in Montana, North Dakota, Washington, Colorado and Idaho using 19-seat turboprop planes.

ADVERTISEMENT
The companies agreed Mesaba would pay $2.60 a share for all outstanding Big Sky stock. Big Sky traded for 50 cents a share on the Pacific Stock Exchange Thursday.

Mesaba, which flies to 106 cities in 24 states, plans to operate Big Sky as a wholly owned subsidiary. Mesaba Holdings expects the transaction will have no effect on its fiscal year 2003 earnings and will add slightly to earnings in fiscal 2004.

Mesaba Holdings will formally begin the tender offer after Big Sky has satisfied certain labor conditions.

"Big Sky is a good example of the type of opportunity we are seeking," said Paul Foley, Mesaba Holdings president and chief executive. "It is an efficiently run company with an excellent safety record and a cost structure that positions it well in the highly competitive regional airline marketplace."

Mesaba shares rose 73 cents, or 14.5 percent, to close at $5.76 Thursday on the Nasdaq stock exchange.

http://biz.yahoo.com/ap/020926/mesaba_big_sky_1.html

Big Sky is already a NW partner. This by the way spells disaster for Mesaba Airlines employees. It's pretty clear the way Mesaba Holdings is taking this venture. Their cost structure is the perfect entity to bid for CRJs to aid in growing NW or other airlines.... at the expence of the hard working employees that made all the cash for Mesaba Holdings. This is the beginning of really bad times at the airlinks of NW.


AZJ

AZJ: Did you read the article?

Kinda ironic, huh?

FAIRCHILD METRO IIIs!!! Exciting! I wonder if Mesaba will merge with Big Sky? Is it feasible to see Big Sky become Northwest Airlink? If not, maybe we'll get elite qualifying miles?

Of course I read the article!! I'm going to stop jumping the gun with speculation - but I hope that the labor issues they're talking about is how they're going to merge the Big Sky seniority list into the Mesaba Airlines seniority list so that Mesaba Airlines pilots don't get screwed in this deal.

Now that Mesaba Holdings will own big sky - they can use Big Sky to expand their opportunities outside NW - so this may not become another NW Airlink airline.

There are tons of details to come forth... we should wait and see.


AZJ

Yeah, a senior pilot at Mesaba with two years seniority may be displaced by a senior pilot at Big Sky with two and half years seniority. What a joke.

AZJ,

Didn't mean to insult you - I thought the article was implying Big Sky was having labor problems...

But I hope you guys get the contract you're looking for -- you certainly deserve it!

Yes - I think this is called running the company to the benefit of the shareholders - strange concept I know.

yes - I realize this is running a company. However it has been preached at Mesaba that their employees are their best assett and that Mesaba Airlines employees will be used to grow the company. There is a difference between running the company the right way and running the company ethically.

Try this article on for size...

http://biz.yahoo.com/prnews/020927/dcf032_1.html


AZJ