Atlanta-based Delta Air Lines, Inc., announced Thursday that it has agreed to sell two of its wholly owned regional airline subsidiaries, Eagan-based Mesaba Airlines and Minneapolis-based Compass Airlines, for a combined $82.5 million.
Mesaba Airlines has been sold to Memphis, Tennessee-based Pinnacle Airlines Corporation for $62 million, and Compass Airlines has been sold to St. Louis-based Trans States Holdings, Inc., for $20.5 million.
Under the terms of the agreements, Mesaba and Compass will continue to serve Delta customers with long-term, extendable agreements, which range from seven to 12 years depending on aircraft type.
In addition, both Mesaba and Compass will continue to be headquartered in the Twin cities and their current presidents, John Spanjers of Mesaba and Tim Campbell of Compass, will continue leading the airlines under the new ownership.
Both subsidiaries are, and will continue to be, members of the Delta Connection program—a group of carriers that are under service agreements with Delta.
Delta said that proceeds from the sales will be used for general corporate purposes.
Pinnacle Airlines Corporation is the parent company of Pinnacle Airlines, Inc., and Colgan Air, Inc. Pinnacle Airlines, Inc., operates a fleet of 142 regional jets and Colgan Air, Inc., operates a fleet of 48 regional turboprops as Continental Connection, United Express, and US Airways Express.
Trans States Holdings, Inc., is the parent company of two regional airlines, Trans States Airlines and GoJet Airlines. Together, Trans States Holdings' regional airlines serve nearly five million passengers annually to 69 cities on 330 daily flights. Trans States currently operates flights as United Express and US Airways Express.