Delta Air Lines Sells Mesaba and Compass Regional Subsidiaries
Delta Air Lines on Thursday announced it has entered into definitive agreements to sell two of its regional airline subsidiaries, Mesaba and Compass Airlines.
Delta said in a statement that Mesaba has been sold to Memphis, Tenn.-based Pinnacle Airlines Corp. for $62.0 million, and Compass has been sold to St. Louis-based Trans States Holdings, Inc. for $20.5 million.
Both regional carriers will continue to serve Delta customers with long-term, extendable agreements, ranging from seven to 12 years. The airlines will continue to be headquartered in Minneapolis-St. Paul with current presidents John Spanjers and Tim Campbell, respectively, leading the airlines under new ownership, Delta said.
“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,” said Delta Connection Senior Vice President Don Bornhorst.
Both regional carriers will operate as wholly owned subsidiaries of Pinnacle Airlines Corp, Inc. and Trans States Holdings, Inc., respectively.
Delta added that the transactions are not expected to result in any changes in flight schedules or locations served. Compass and Mesaba’s combined fleet of nearly 130 aircraft will continue to be dedicated to flying Delta routes.
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