Mesaba Negotiations update:  October 16, 2006

Today in Bankruptcy court, Judge Gregory Kishel granted Mesaba’s renewed 1113c motion to abrogate the collective bargaining agreements of ALPA, AFA and
AMFA. Judge Kishel is allowing Mesaba to impose the new terms of the company’s latest proposal of 17.5% reductions of pay, work rules and benefits on the
three unions at 12:01am, Wednesday, October 18. Mesaba has stated that it still intends to bargain with the unions. Judge Kishel is holding a hearing on Tuesday
afternoon at 1:30 on the union’s right to strike. A full update of Tuesday’s hearing will follow.

Mesaba has still not contacted or made a counter-proposal to AMFA since AMFA made a proposal to Mesaba on Saturday evening.

The unions are in the process of preparing a joint appeal to the District Court, the same court that overturned the last 1113c decision.