Delta to Sell Regional Subsidiaries Compass and Mesaba

By | July 1, 2010
Delta Air Lines headquarters in Atlanta
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The Wall Street Journal reports that Delta Air Lines will be selling two of its regional airline subsidiaries, Mesaba and Compass.

Mesaba will be sold to Pinnacle Airlines for $62 million. Pinnacle also owns Colgan Air, the company which operated the fatal Continental Connection flight that brought to light problems in the regional airline system.

Compass will be sold to Trans-State Holdings for $20.5 million. Trans State operates Trans State Airlines and GoJet Airlines. Yesterday, the FAA declared its intent to fine Trans State and GoJet for violating maintenance procedures, although the airlines claim they will prove the allegations are incorrect.

Both airlines will continue to contract with Delta to provide over 600 daily regional flights for the next 7-12 years.

Author: Guru

Guru is the Editor of Flight Wisdom and a long time aviation enthusiast.