Northwest Airlines has unveiled plans to spin off Express Airlines I, accelerating an industry trend for US majors to separate themselves from their regional subsidiaries.
The carrier has filed a registration statement to offer an undisclosed number of shares in Express I, which will be renamed Pinnacle Airlines as part of the sale.
Memphis-based Express I now operates 34 Bombardier CRJ200s and 24 Saab 340s on behalf of Northwest Airlink. However, the carrier plans to transfer all its 340s to fellow Northwest Airlink carrier Mesaba Airlines by the end of this year as part of a move to transition to an all-CRJ fleet, which is slated to grow to 83 aircraft by mid-2004.
Shift
Northwest purchased Express I in 1997 and last year made an offer to buy its only other regional partner, Minneapolis – based Mesaba. But Northwest has since decided against purchasing Mesaba and over the last year has also been reconsidering its plans for Express I.
The strategy shift comes as several US majors make and ponder moves to separate themselves from their regional partners.
A long pilot strike at Delta Air Lines, regional subsidiary Comair last year seemed to end a string of sales of US regionals to their major-airline partners and start a movement in the opposite direction.
The 11 September terrorist attacks could further accelerate this trend as majors look for ways to drum up cash.
Meanwhile, Continental Airlines has revised its registration statement for the spin-off of Continental Express, restarting IPO plans put on hold temporarily following the 11 September attacks.
AMR is also considering selling off Puerto Rico-based Executive Airlines and several other US majors are expected to follow suit.
Source: Flight Daily News
