Delta sells 2 of its regional subsidiaries, Mesaba and Compass Airlines, for combined $82.5M

Delta sells 2 regional carriers for $82.5M

NEW YORK — Delta Air Lines says it sold two of its regional subsidiaries, Mesaba and Compass Airlines, which both operate as Delta Connection.

Delta Air Lines Inc., the world’s largest airline, said Thursday it sold Mesaba to Pinnacle Airlines Corp. for $62 million and Compass to Trans States Holdings Inc. for $20.5 million. Pinnacle is one of Delta’s largest regional carriers.

Mesaba and Compass will continue to operate Delta flights through agreements ranging from seven to 12 years. Both Mesaba and Compass will keep their home base in the Minneapolis-St. Paul area and retain their top executives.

Delta says the move is part of its plan to streamline its regional operations to save money.