Mesaba Slashes Management Force
Mesaba Aviation last month announced the elimination of 33 management positions as a result of expected declining flight activity. The company plans to reduce its capacity for fiscal year 2004 by 5 percent. Mesaba said the decline “reflects the current economic conditions in the airline industry and lower consumer demand.” The positions affected include both staffed and open positions. The airline has reduced its management headcount to 312 from 345, a reduction of nearly 10 percent.
Mesaba said it also plans to cut some 50 positions from its non-management workforce over the next six months, through a combination of furloughs and voluntary leaves. Last month the company froze all management base pay through next April 1.
During the month of March Mesaba flew 243.7 million available seat miles (ASMs), a 7.7-percent increase over the same month a year earlier. Its total passengers carried rose 5.9 percent, while its 143.7 million revenue passenger miles (RPMs) resulted in a 1.2-point increase in load factor, to 59 percent.