Mesaba Airlines Announces Cost-Cutting Moves; Airline Will Furlough 50 Pilots, Close Two Flight Crew Bases

Business Wire, August 28, 2002

Business Editors

MINNEAPOLIS & ST. PAUL, Minn.--(BUSINESS WIRE)--Aug. 28, 2002

Mesaba Aviation, Inc., today announced a series of moves aimed at reducing its cost structure, as the airline expects to see decreased passenger loads and lower aircraft usage in the fall. Mesaba will furlough approximately 50 pilots between now and January and close its flight crew bases in Wausau, Wis., and Rhinelander, Wis., by Dec. 31.

"We regret the need to make these decisions, but they are necessary given the current economic realities of the airline industry," said John Spanjers, chief operating officer and vice president of flight operations. "The reduced fall flight activity reflects the continued softness in passenger demand."

Mesaba Aviation, Inc., d/b/a Mesaba Airlines, operates as a Northwest Jetlink and Airlink partner under service agreements with Northwest Airlines. Currently, the airline serves 103 cities in 26 states and Canada from Northwest's and Mesaba's three major hubs, Detroit, Minneapolis/St. Paul, and Memphis. Mesaba operates an advanced fleet of regional jet and jet-prop aircraft, consisting of the 69 passenger Avro RJ85 and the 30-34 passenger Saab SF340.

Mesaba Aviation's parent company, Mesaba Holdings, Inc., is traded under the symbol MAIR on the NASDAQ National Market.

More information about Mesaba Airlines is available on the Internet at: http://www.mesaba.com

This news release contains forward-looking statements that are based on the best information currently available to management. These forward-looking statements are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933. There can be no assurance that actual developments will be those anticipated by the Company. Actual results could differ materially from those projected as a result of a number of factors, some of which the Company cannot predict or control. For a discussion of some of these factors, please see Item 1 of the Company's Form 10-K for the year ended March 31, 2002 and Form 10-Q for the quarter ended June 30, 2002.