Pinnacle just filed for Chapter 11 protection

Discussion in 'Delta Air Lines | SkyMiles' started by TravelerRob, Apr 2, 2012.  |  Print Topic

  1. TravelerRob
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    TravelerRob Silver Member

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  2. Wandering Aramean
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    Wandering Aramean Gold Member

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    Of the $74MM, about $44 is already committed; only $30MM is new money.

    Also of note, there are 16 CRJ-900s which Pinnacle operates under the Delta flag which will be retired in the first half of 2013. The deal also extends the agreements for operations of the CRJ-200s beyond 2017. Not quite as significant for DL as for UA which is seeing more planes retired more quickly, but still some impact. Then again, the Delta deal calls for paying actual costs plus a margin so it isn't too surprising that those are more likely to remain in service.
    http://boardingarea.com/blogs/thewa...or-bankruptcy-protection-delta-takes-a-stake/
     
  3. DCAview
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    DCAview Silver Member

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    I don't understand why Delta is keeping the 50-seat jets and losing the 90-seat jets. Hasn't the industry mantra over the last few years been that 50-seat flying is uneconomic at current fuel-price and fare levels? I thought that most network carriers were looking to reduce the number of 50-seat jets they have under contract.
     
  4. mtkeller
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    mtkeller Silver Member

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    It sounds like Pinnacle playing games to force some concessions from Delta. They know that Delta wants to keep the CR9s and dump the 50-seaters, so they're trying to gain some leverage with what little control they actually have.
     
  5. TravelerRob
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    TravelerRob Silver Member

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    The article says Pinnacle is currently in the process of dropping UA completely so I'm not sure UA plays much of a factor here.

    Thanks for the note on the current (~$40M) vs new money (~$30M).

    -RM
     
  6. N670DN
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    N670DN Silver Member

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    Why can't they just merge with another regional carrier like Comair, ASA, etc...Then get rid of the CRJs.
     
  7. USAF_Pride
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    USAF_Pride Gold Member

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    Because DL has been trying to dump Comair for years without any takers. They sold off Mesaba and Pinnacle, but they were more legacy NWA than legacy DL. DL is responsible for the likes of Comair and ASA. Not much more needs to be said about keeping the wrong ones!!
     
  8. Art234
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    Art234 Milepoint Guide

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    I understand dumping the Saab 340's, but I thought the Q400's were efficient and profitable on all but very thin routes. As I hear it the fee schedule was what didn't work, so one wonders who will pick up the Q400s and associated flying--I thought that there would be a growing market for the Q's, not this.....
     
  9. Wandering Aramean
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    Wandering Aramean Gold Member

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    The Q4s are great for the parent airline from a CASM basis. The problem here is that UA (CO at the time) locked in a fixed fee rather than cost plus arangement for the CPA. Costs spiked and Pinnacle was left holding the short end, to the tune of $11MM in 2011. UA wouldn't agree to terms that made sense to Pinnacle long-term so Pinnacle is dumping the contract under the auspices of Ch11. Given the relatively small size of their deal it probably makes sense for UA to try to roll those planes into a partner where they have larger operations. CommutAir already has Q2 and Q3s for UA so they are a leading candidate to pick up the Q4s.

    As for merging with another regional carrier, that won't help much of anything I can see.
     
  10. Art234
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    Art234 Milepoint Guide

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    Thanks Seth, that was the information I had heard.
     
  11. MSPeconomist
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    MSPeconomist Gold Member

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    Yesterday I had a Pinnacle CRJ-900 flight in FC. Despite the bankruptcy decision, the FA working in front was very good (no direct observations about the other FA) and both FAs seemed to be in good spirits.

    However, as the FA told me emphatically, the plane wasn't catered properly at the station before my departure point. She was apologetic and embarrassed. This was a dinner flight of over three hours, with no choice for the meal. More importantly, the flight ran out of both red and white wine while we were eating dinner, roughly half way into the flight. The FA said that the plane was given just a few small bottles of the wine they sell in coach, insufficient in both quantity and quality. There was no "FC" wine in 750 ml bottles on board.
     
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  12. USAF_Pride
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    Was there any "whining" on board?
     
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  13. frankmu

    frankmu Silver Member

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    If Skywest gets the Q400's, would they get rid of the EMB120's? I keep reading rumors that Skywest wants to retire the EMB120's, but there doesn't seem to be any aircraft that can replace it. I actually like the EMB120's, and appreciate the fact they provide economic service to small airports like ours (OTH, North Bend Oregon)
     

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