$PNCLQ Pinnacle Airlines close to deal with p
Post# of 29735
Posted On: 11/25/2012 11:37:25 AM
$PNCLQ
Pinnacle Airlines close to deal with pilots, possible exit from bankruptcy
Memphis Business Journal by Andy Ashby, Staff writer
Date: Monday, November 19, 2012, 11:39am CST - Last Modified: Friday, November 23, 2012, 6:00am CST
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Andy Ashby
Staff writer- Memphis Business Journal
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Pinnacle Airlines Inc., a wholly-owned subsidiary of Memphis-based Pinnacle Airlines Corp., has a taken a step closer to reaching an agreement with its pilots, which could help the company emerge from bankruptcy.
The U.S. Bankruptcy Court for the Southern District of New York issued a ruling providing Pinnacle Airlines and the Air Line Pilots Association (ALPA), the legal representative of the Pinnacle’s pilot group, a clear path to a consensual agreement.
The court noted three “very limited exceptions” that prevented it from granting Pinnacle’s motion at this time, characterizing them as “relatively easy to fix.” The court concluded that significant modifications to the CBA are needed.
“Today’s ruling gives Pinnacle a brief opportunity to reach an agreement that will provide the savings we need,” John Spanjers, president and CEO of Pinnacle Airlines, said in a statement. “Although the Court did not approve our proposed modifications in full, the court gave the parties a clear road map to arrive at cost savings necessary for Pinnacle to emerge from bankruptcy as a viable, competitive company.
“Pinnacle continues to face severe financial challenges requiring urgent cost savings, but we now believe there is a path to achieving a competitive cost structure necessary to survive in our challenging industry.”
Pinnacle Airlines Corp. (OTC: PNCLQ), a $900 million airline holding company with 5,250 employees, is the parent company of Pinnacle Airlines Inc.
Flying as Delta Connection, Pinnacle Airlines operates 197 regional jets on 1,000 daily flights to 131 cities in the U.S. and Canada. The company has hub operations in Atlanta, Detroit, Memphis and Minneapolis.
Andy Ashby covers commercial real estate; transportation and logistics; construction; and Downtown Memphis. Contact him at aashby@bizjournals.com.
Related links: Bankruptcies
Pinnacle Airlines close to deal with pilots, possible exit from bankruptcy
Memphis Business Journal by Andy Ashby, Staff writer
Date: Monday, November 19, 2012, 11:39am CST - Last Modified: Friday, November 23, 2012, 6:00am CST
Enlarge Image
Sponsored Links
iShares ETFs
Quality Products to Help Navigate Today's Volatile Markets. Get Info.
www.ishares.com
Screen Sharing Software
Most Secure Solution. Free Trial! Efficient Remote Support Software.
www.Bomgar.com/Free-Trial
Get Listed Here
Andy Ashby
Staff writer- Memphis Business Journal
Email | Twitter
Pinnacle Airlines Inc., a wholly-owned subsidiary of Memphis-based Pinnacle Airlines Corp., has a taken a step closer to reaching an agreement with its pilots, which could help the company emerge from bankruptcy.
The U.S. Bankruptcy Court for the Southern District of New York issued a ruling providing Pinnacle Airlines and the Air Line Pilots Association (ALPA), the legal representative of the Pinnacle’s pilot group, a clear path to a consensual agreement.
The court noted three “very limited exceptions” that prevented it from granting Pinnacle’s motion at this time, characterizing them as “relatively easy to fix.” The court concluded that significant modifications to the CBA are needed.
“Today’s ruling gives Pinnacle a brief opportunity to reach an agreement that will provide the savings we need,” John Spanjers, president and CEO of Pinnacle Airlines, said in a statement. “Although the Court did not approve our proposed modifications in full, the court gave the parties a clear road map to arrive at cost savings necessary for Pinnacle to emerge from bankruptcy as a viable, competitive company.
“Pinnacle continues to face severe financial challenges requiring urgent cost savings, but we now believe there is a path to achieving a competitive cost structure necessary to survive in our challenging industry.”
Pinnacle Airlines Corp. (OTC: PNCLQ), a $900 million airline holding company with 5,250 employees, is the parent company of Pinnacle Airlines Inc.
Flying as Delta Connection, Pinnacle Airlines operates 197 regional jets on 1,000 daily flights to 131 cities in the U.S. and Canada. The company has hub operations in Atlanta, Detroit, Memphis and Minneapolis.
Andy Ashby covers commercial real estate; transportation and logistics; construction; and Downtown Memphis. Contact him at aashby@bizjournals.com.
Related links: Bankruptcies
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