Mesaba Corporate Profile

Date: Thu, 20 Nov 1997 15:52:38 GMT Server: Stronghold/1.3.4 Ben-SSL/1.3 Apache/1.1.3 Content-type: text/html Content-length: 9027 Last-modified: Mon, 17 Feb 1997 16:12:24 GMT Mesaba Corporate Profile

Corporate History

As a small fixed-base operator in rural northern Minnesota, Mesaba Aviation, whose Native American name is derived from the geographic iron ore range in that area, had its humble beginning in 1944. Its first owner, Gordy Newstrom, a World War II veteran, nurtured Mesaba's fledgling assets until a corporate relocation to Grand Rapids, Minnesota helped secure the company's future as a growing general aviation contractor.

Although two ownership transitions took place in the early 1970's, Mesaba Aviation's scheduled air service did not begin till 1973 when service was initiated to several rural Minnesota communities. In 1977 Mesaba Aviation was purchased by the Swenson family of Grand Rapid, Minnesota.

Under the direction of the Swenson Family and aided by the Airline deregulation Act of 1978 , Mesaba entered into an Essential Air Service agreement that introduced the commuter carrier into more areas in Minnesota, South Dakota, North Dakota, and Iowa. The airlines expanded route network using Minneapolis/St. Paul as a hub, helped develop a foundation in the twin cities for Mesaba.

After forging a partnership with Republic Airlines in 1983 to connect mutual passengers and offer joint fares, Mesaba continued to grow and acquire additional aircraft. The Fokker-27 and then later the Fairchild Metro III aircraft became the backbone of Mesaba's first definitive route structure. During the same period the airline transitioned its operation to one that flew under a Part 121 FAA certificate.

In 1984 Mesaba Aviation discontinued its marketing relationship with Republic Airlines, moved its corporate headquarters to Minneapolis/St. Paul, and entered into a corporate marketing agreement with Northwest Airlines. Under this new agreement Mesaba Aviation would become known as Northwest Airlink, the first regional affiliate for Northwest Airlines. Under this agreement, the two airlines coordinated flight schedules, fares, and marketing initiatives.

In 1986, Northwest and Republic merged to form the fifth largest airline in the United States. The merger had several effects on Mesaba. First, Mesaba's route structure adjusted, leaving some aircraft to sit idle. As a result of excess capacity, Mesaba ventured into a brief phase of charters. The F-27 charter aircraft had such supporters as athletic teams in the "Big Ten Conference". The nickname "The Big Ten Airline" still echoes today in Mesaba's route structure. In 1988 the airline continued to benefit from the Northwest/Republic merger, Mesaba Aviation, now operating as Northwest Airlink, was asked to operate a second hub at Detroit's Metropolitan Airport. This new operation nearly doubled the regional airline's route structure, increased passenger traffic over 73%, and solidified its corporate relationship with its major airline affiliate.

The phenomenal expansion of the Detroit operation and the stability of the Minneapolis/St.Paul operation significantly contributed to the overall drive of Mesaba Airlines. In 1991, the acquisition of a new fleet of 37-seat DeHavilland Dash-8 turbo-prop aircraft helped extend Mesaba's dual hub system to 16 states and 2 Canadian provinces. Although 1993 was a trying time in its company history since its affiliate partner was on the verge of bankruptcy, Mesaba remained a dedicated participant in the growth of the regional airline industry.

The financial problems Northwest Airlines was experiencing in early 1994 led Mesaba Aviation to look for additional forms of growth for the holding company. In June of 1994 the airline acquired Conquest Airlines Corporation and developed a jet operation operating as Airtran Airways.

1995 was a hallmark year for Mesaba Aviation Inc. The company spun-off the jet operation that the holding company had developed earlier in 1994. In conjunction with the spin-off of the jet operation, Northwest Airlines took a 29.7% equity position in the airline and received three board positions. In addition the longtime President Rob Swenson stepped down as Chairman, President & CEO of the company. Carl Pohlad who held approximately 14% of the airlines stock and who has had many years of experience in the airline industry was named Chairman of the Board. In July of 1995 Carl Pohlad named Bryan K. Bedford as President & CEO of Mesaba Holdings, Inc. the parent company of Mesaba Aviation, Inc. Under Bryan Bedford and several new key senior management personnel the airline focused on improving its operation and developing a platform for further growth.

As a major enhancement, Mesaba Holdings, Inc. and Northwest Airlines in conjunction with Wayne County built a new regional airline terminal. Mesaba opened the new "G" concourse in October of 1995. The $17 million dollar facility allowed Mesaba to offer a world class regional airline product, as well as serve as a transfer point for Northwest Airlines international passengers. As a result of this new concourse and the increased flying Mesaba was offering, Mesaba's passenger levels swelled to over 1.5 million throughout its dual-hub system.

In March of 1996, Mesaba placed a firm order for fifty Saab 340's with Saab Aircraft Ab of Sweden valued at approximately $400 million dollars. The order called for 30 new 34 passenger Saab 340B plus aircraft, and 20 pre-owned 30 passenger Saab 340's. In addition there were options for an additional 22 aircraft. Under this new contract Mesaba's existing fleet would be replaced within a two-and-a-half year time frame.

In addition, on October 28, 1996 Mesaba Aviation, Inc. announced that it had agreed to fly twelve Avro RJ85 jet aircraft for Northwest Airlines who earlier the same day announced an order for twelve RJ85's and options or an additional 24 aircraft. The aircraft will be configured in a two class configuration with 16 first class seats, and 53 coach seats. The aircraft will replace flight schedules that are currently operated with high cycle Northwest equipment.

Corporate Officers

Carl R. Pohlad	Chairman of the Board
Bryan K. Bedford	President & Chief Executive Officer
F.Darryl Richardson	Vice President & Chief Operating Officer
John Fredricksen	Vice President Legal Counsel
Scott L. Durgin	Vice President Customer Service
James R. Arble	Director Customer Service East Region
Scott R. Bussell	Director of Maintenance
Robert H. Cooper	Director of Finance
Wayne C. Heller	Diector of System Operational Control
Jeffery B. Jones	Director of Market Planning
Richard A. Lawrence	Director of Flight Operations
Dennis J. Ofstedahl	Director of Customer Service West Region
Jeffrey C. Olander	Director of Information Systems
Darlene Radloff	Director of Corporate Training
Charles Rathburn	Director of Technical Services
Dan F. Sheehan	Director of Administration & Human Resources
Sandy K. Sturm	Director of Purchasing & Contracts
Warren R. Wilkinson	Director of Marketing & Corporate Communications

© MESABA AIRLINES
7501 26th Avenue South
Minneapolis, Minnesota 55450
(612) 726-5151

For Reservations Call: 1-800-225-2525