Mesaba Wins Court Battle

Aviation International News » December 2005
October 30, 2006, 11:23 AM

Mesaba Aviation won a motion it filed last month against its fellow Chapter 11 petitioner and mainline partner Northwest Airlines for withholding more service contract payments. Mesaba, which subleases its Avro RJs and part of its Saab 340 fleet from Northwest, claimed that Northwest withheld $5.2 million in retaliation for the regional airline’s suspension of lease payments–a practice allowed under U.S. bankruptcy rules and common during negotiations for new lease terms.

A U.S. bankruptcy court judge ordered Northwest to pay the $5.2 million and the full amount of any service contract fees due during the next 60 days.

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