MINNEAPOLIS (AP) -- The pressure is off at Mesaba Aviation Inc., at least for now.þþThe bankrupt feeder carrier for Northwest Airlines Corp. had permission to impose pay cuts on its pilots, flight attendants and mechanics at 1:01 a.m. EDT on Wednesday. But when it asked a judge to block a strike, Bankruptcy Judge Gregory Kishel balked, delaying a decision on whether the unions can strike, and pulling back his permission for the airline to impose new terms.þþSaying he would not be hurried, Kishel said he would rule later this week or early next week. He barred the airline from imposing new terms before he issues his ruling.þþ''It has an effect of cruelty. It's not intended to be cruel,'' he said Tuesday night after seven hours of testimony and arguments over whether he should block a strike.þþHe also barred creditors from seeking to liquidate the airline for now -- something they had threatened to do if Mesaba didn't get labor deals it says it needs to keep flying for Northwest, its only customer.þþMesaba President John Spanjers testified that the airline would be devastated by a strike, and that he expects that creditors would then step in to sell off its assets.þþ''Our flight operations would cease, and we would likely see the creditors committee step in and seize our assets,'' he said.þþAttorneys for Mesaba's pilots, flight attendants, and mechanics argued that the law bars judges from blocking strikes even when the consequences would be dire. The bankruptcy judge in Northwest Airlines' case found the same thing earlier this year when its flight attendants tried to strike. However, a different judge blocked the strike, and the matter remains on appeal.þþThe unions also said it would be unfair to allow the company to impose the terms it wants while also taking away their right to strike. The company said it would keep negotiating even if it imposes new terms, but union lawyers said the company would have no incentive to make a better deal. Mesaba has said it would impose cuts that would cut 17.5 percent off its labor expenses.þþ''All hope of any real leverage, any real negotiations to reach a consensual agreement, will evaporate,'' said Nicholas Granath, an attorney for the Aircraft Mechanics Fraternal Association. ''It will evaporate with the stroke of a pen, and that will be your honor's pen,'' he said.þþSpanjers said employees who don't like the new terms can leave.þþMesaba, a unit of MAIR Holdings Inc., gets all of its planes, passengers and revenue from Northwest, which filed for bankruptcy protection in September 2005. Mesaba followed a month later.þþMesaba has warned that its financial situation is deteriorating and it can't tap into $24 million in debt financing unless it reaches a deal with its unions.þþMesaba, which does business as Mesaba Airlines and flies under the Northwest Airlink name, flies to 86 cities in the U.S. and Canada, funneling passengers to Northwest's hubs in Minneapolis, Detroit and Memphis, Tenn. It's the only air carrier serving some of those cities.þþNorthwest has said it has a contingency plan for a strike, but has declined to provide details. Northwest pilots have said they won't fill in for striking Mesaba pilots. And on Tuesday Spanjers said he has had no contact with Northwest about plans to transport passengers if there's a strike.þþIn cities where Mesaba offers the only air service, the situation is being watched closely. They include Fort Dodge, Iowa, where Mesaba's three arrivals and three departures daily save people a four-hour drive to Minneapolis.þþ''We love our service,'' said Rhonda Chambers, manager of Fort Dodge Regional Airport. ''We want to make sure it stays. It's very important to our community.''þþ
Source: NY Times
