Paul Lewis/WASHINGTON DC
Mesaba Airlines has set it sights on adding up to 100 new regional jets to its Northwest Airlink feeder operation, broadening out into the regional cargo industry and looking for acquisition and new feeder opportunities as part of its new business plan.
"Our primary focus is to be the recipient of the next 100 regional jets that Northwest Airlines plans to order either at the end of this year or early 2001...we want to be in a position to compete for those aircraft," says Paul Foley, Mesaba president and chief executive.
Northwest is currently looking at regional jets with 44-seats or less, such as the Embraer ERJ-140/135, Fairchild Dornier 328jet or a recertificated Bombardier CRJ200, to comply with its current scope clause agreement. The airline at the same time is hoping to get its pilots to agree to relax the existing cap on larger 50/69-seat jets which is currently set at 54.
Mesaba lost out in the last major Northwest purchase, with 42 of the 54 CRJ200s going to its wholly owned subsidiary Express One. Foley hopes to secure the remaining 12 when delivered in 2002, but this and the fate of the next 100 jets hinges on Mesaba being able to absorb the extra capacity and proving competitive over pilot pay.
Foley says the airline needs the extra capacity to expand and upgrade existing turboprop services. The airline, which operates hubs in Minneapolis, Detroit and Memphis, has identified more than 100 city destinations for regional jet operations.
Mesaba does not plan to phase out its 73 leased Saab 340s, but redeploy them to smaller 19-seat routes, and convert 20-35 aircraft to freighters to feed large express package operators. "The market value of the aircraft is now $2.5 to $3 million making them attractive for cargo missions," says Foley.
The company has spoken to major forwarders, including the US Post Office, Memphis-based Fedex and Cincinatti-based DHL, where Mesaba already maintains a presence. Converting a Saab 340 costs around $200,000 including the installation of a side door and nets. It would be able to carry up to 3,178kg (7,000lb) of freight.
Longer term, Mesaba is using Salomon Smith Barney to scout for regional operations it could acquire to give it a feeder service to another major carrier, such as United Airlines or US Airways.
Source: Flight International
