Delta reaches agreements to sell Mesaba, Compass subsidiaries
Delta Air Lines announced (01-Jul-2010) it has entered into definitive agreements to sell two of its wholly owned regional airline subsidiaries, Mesaba and Compass Airlines. Mesaba has been sold to Pinnacle Airlines for USD62 million, and Compass to Trans States Holdings for USD20.5 million. Under the terms of the agreements, Mesaba and Compass will continue to serve Delta customers with long-term extendable agreements, ranging from seven to 12 years depending on aircraft type. The proceeds from these transactions will be used by Delta for general corporate purposes. [more - Delta] [more - Pinnacle] [more - Pinnacle's SEC filing] [more - ALPA] [more - Trans States]
Delta Connection: "Today's announcement reflects our continued focus on streamlining the portfolio of Delta Connection carriers serving our customers to ensure each partner airline is independently positioned for success with a competitive cost structure and an industry-leading focus on safety, reliability and customer service. In recent years, the Delta Connection carriers have made substantial progress in creating a consistent customer experience across our brand with more first-class cabins, enhanced food service, jetbridge boarding and other amenities Delta customers expect when they fly Delta or Delta Connection flights. This transaction is another step in positioning our regional airlines for future success and we look forward to delivering even more improvements to customers in the more than 260 communities our partners serve." Don Bornhorst, Senior Vice President of Delta Connection.