Northwest drops bid for Mesaba

Northwest Airlines has withdrawn its offer to buy the shares of Mesaba it does not already own. Northwest had made the offer in November 2000 and negotiations had been underway since then. Northwest’s decision to withdraw the offer appears to be a reaction to the problems Delta Airlines experienced following its acquisition of Cincinnati-based Comair. The move prompted Comair’s pilots to demand salaries and working conditions more similar to those of mainline Delta pilots. The resulting strike has grounded Comair since March. Despite its decision not to pursue an outright acquisition of Mesaba, Northwest has announced it would continue its existing relationship with Mesaba, and expand it. Mesaba operates 36 Avro RJ85s and a large fleet of SAAB 340s on Northwest’s behalf.

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