Mesaba Negotiations update:  August 31, 2006

Mesaba, AMFA, AFA and ALPA returned to the court room today in Minneapolis for a hearing on the unions appeal of the 1113c decision. AMFA, AFA and ALPA took a
unified stance and had coordinating arguments. The hearing lasted approximately two hours. Judge Davis did not say when he would issue his ruling.

AMFA's focus was on the balance of equities that did not favor the rejection of the collective bargaining agreements.

ALPA focuses on the failure of Mesaba to meet with the unions in violation of the bankruptcy code language and that Mesaba did not act in good faith when it made terms
of the proposals to the unions nonnegotiable.

AFA argued the necessity of the 19.4% reductions and the need of the 8% operating margin to attract exit financing. This is financing that Mesaba is unsure if it will even
need.

Mesaba's counsel countered that Mesaba needed the concessions to secure new flying opportunities. Mesaba's counsel attempted to rebut the unions claim that
management had negotiated in bad faith, but was unable to do so effectively.

All three unions responded that they had put substantial money on the table and that managements refusal to compromise was resulting in a stalemate.

There are currently non negotiations scheduled for and of the unions.

Nate