Pinnacle - Delta Connection - Files Chapter 11 in Bankruptcy Court
Apr 1, 2012, 10:04 pm
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Pinnacle - Delta Connection - Files Chapter 11 in Bankruptcy Court
Pinnacle Airlines, Operator of Delta Connection, United Express, and US Airways Express Flights, Files Chapter 11
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Pinnacle Airlines announced it has filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.
Pinnacle Airlines Corp. has revenues of $1 billion and 8,000 employees. It is the parent of Pinnacle Airlines, Inc. and Colgan Air, Inc. and operates Delta Connection, United Express, and US Airways Express Flights.
In a statement released Sunday night, the airline said it will develop “a comprehensive turnaround plan …
Pinnacle Airlines Corp. has revenues of $1 billion and 8,000 employees. It is the parent of Pinnacle Airlines, Inc. and Colgan Air, Inc. and operates Delta Connection, United Express, and US Airways Express Flights.
In a statement released Sunday night, the airline said it will develop “a comprehensive turnaround plan …
Apr 2, 2012, 2:44 am
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what's the speculation on the near and long-term impact? Wikipedia displays a long-list of cities served by Pinnacle.
I see the executive team got huge pay raises right after a 5% pilot wage cut and right before the bankruptcy filing.
Corporate bankruptcy is such a joke.
Apr 2, 2012, 4:37 am
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It's the easy way to get rid of the Saabs and Q's.
Odds are they emerge with the Mesaba name.
Too bad the bankruptcy court won't have the guts to roll back those management raises.
Odds are they emerge with the Mesaba name.
Too bad the bankruptcy court won't have the guts to roll back those management raises.
Apr 2, 2012, 5:53 am
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The company will shed debt, cut employee wages/benefits and then resume business as usual after the top guys get huge "retention bonuses", most likely...
I see the executive team got huge pay raises right after a 5% pilot wage cut and right before the bankruptcy filing.
Corporate bankruptcy is such a joke.
I see the executive team got huge pay raises right after a 5% pilot wage cut and right before the bankruptcy filing.
Corporate bankruptcy is such a joke.
Last edited by xliioper; Apr 2, 2012 at 6:11 am
Apr 2, 2012, 6:45 am
#7
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If memory serves me correctly, Pinnacle was once a wholly-owned subsidiary of NWA under a different name. With Delta providing DIP financing and its majority creditor, does this mean that the airline is once again or will be part of NWA-Delta?
Apr 2, 2012, 7:03 am
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Apr 2, 2012, 7:25 am
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This expert from the artlice quoted at The Wandering Armenean scares me...
While the company plans to operate normally in the coming days, they also intend to make significant operational changes in the coming months regarding their contracts with carriers. With Delta, the filings indicate an extension of the CRJ-200 Agreement, suggesting that those aircraft will remain in service for Delta beyond the current 2017 expiry. At the same time, they claim that the CRJ-900 flying is unprofitable and that it must be curtailed or renegotiated. To that end, the CRJ-900 aircraft currently operating for Delta will be removed from service in the first half of 2013.
Apr 2, 2012, 7:51 am
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This expert from the artlice quoted at The Wandering Armenean scares me...
Also, how is it possible that the 900 is less profitable? I thought they were more fuel efficient and seat 20 more passengers, in addition to offering FC and soon EC monetization opportunities.
Maybe Pinnacle and Delta just need to part ways.
Apr 2, 2012, 7:59 am
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I'm just wondering why they plan on getting of the newer, more efficient aircraft. The -900 is a good airplane, although a little cramped in back. I would take riding on a Q400 any day over a CRJ-200. No one wants 50 seat RJ's anymore. Delta sure doesn't. Not quite sure what Pinnacles strategy is here.
Apr 2, 2012, 9:11 am
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Delta has told investors that they are committed to reducing and eliminating use of 50 seat planes. I wonder what happens if Delta refuses to extend the contract for Pinnacle to use the 200s?
Also, how is it possible that the 900 is less profitable? I thought they were more fuel efficient and seat 20 more passengers, in addition to offering FC and soon EC monetization opportunities.
Maybe Pinnacle and Delta just need to part ways.
Also, how is it possible that the 900 is less profitable? I thought they were more fuel efficient and seat 20 more passengers, in addition to offering FC and soon EC monetization opportunities.
Maybe Pinnacle and Delta just need to part ways.
Apr 2, 2012, 9:14 am
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I'm just wondering why they plan on getting of the newer, more efficient aircraft. The -900 is a good airplane, although a little cramped in back. I would take riding on a Q400 any day over a CRJ-200. No one wants 50 seat RJ's anymore. Delta sure doesn't. Not quite sure what Pinnacles strategy is here.
Apr 2, 2012, 9:46 am
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The profitable 200s versus unprofitable 900s is a Pinnacle/Delta contract issue, not a characteristic of the aircraft. Two pilots and 76 seats versus two pilots and 50 seats with similar fuel burn rates is a simple mathematical advantage to the CRJ-900. All of the mainline carriers want to reduce their <= 50 pax exposure and subject to pilot contract restrictions on the allowable >= 51 pax aircraft.
Apr 2, 2012, 9:53 am
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