About that Big Stick

Why Mesaba might not use its trump cards

In recent days, beleaguered regional airline Mesaba got pretty much everything it wanted from the bankruptcy court: Permission to unilaterally impose wage cuts on its three largest unions and an injunction preventing union members from retaliating with a strike. But the deadlines laid down by the court have come and gone and the airline and its flight attendants, mechanics, and pilots are still at the bargaining table. So what gives? Maybe the bankers have spoken.

Associated Press business writer Joshua Freed, whose coverage of Mesaba's bumpy ride has been generally excellent, has penned what we in the trade like to call "an explainer."

Court orders barring strikes, like the one issued by a bankruptcy judge in Mesaba's case on Monday night, only apply to immediate walkouts. The unions could still strike if they convince the National Mediation Board that no deal is possible and a cooling-off period expires. And lenders generally prefer to see consensual deals even when the airline has been able to impose what it wants on workers, analysts said....

..."Lenders are always concerned about potential lingering conflicts, and if some type of consensus or agreement can be reached, the lenders are often more comfortable in moving forward with the financing that's necessary," said John Kasarda, a business professor at the University of North Carolina who specializes in aviation issues.

You can read the rest here.