Home Medical Factors Facing Pilots Aviation Stories Of Interest FAA Exam Aviation News Maintenance and Aircraft Mechanics General Aviation Helicopters
Aviation History Legal Issues In Aviation Links To Other Sites Editorials Hot Air Balloon Aviation Training Handbooks Read Online Upcoming Events Editorials

 



 
Pinnacle Airlines Reaches Agreements To Path Out of Chapter 11
 
By Shane Nolan
 

January 3, 2013 - Pinnacle Airlines announced today that it and its wholly owned subsidiaries have entered into comprehensive agreements that, among other things, provide a path forward for the Company to emerge from bankruptcy with a competitive cost structure and a viable long term business plan.

Under Pinnacle's new business plan, the Company will transition its fleet to operate a fleet of 81 fuel-efficient, two class regional jets for Delta Air Lines Inc. 

 
The comprehensive agreements among Pinnacle, Delta, the Air Line Pilots Association, International (ALPA) and the Official Committee of Unsecured Creditors (Creditors' Committee) in Pinnacle's Chapter 11 cases include: 

An amendment to the Company's existing debtor-in-possession credit facility, to provide Pinnacle with $30 million of additional liquidity to support its continued operation through emergence from Chapter 11 and an additional $22 million to fund certain required payments to Pinnacle's pilots under a Bridge Agreement and related employer taxes. The amendment would also extend the maturity date for the credit facility from April 1 to May 15, 2013. 

Amendments to the existing operating agreements with Delta that form the basis of the new business plan. Pinnacle will receive Delta Connection's next 40 CRJ-900 aircraft awarded, setting Pinnacle's long-term fleet plan at 81 CRJ-900 aircraft. The 40 additional CRJ-900 aircraft deliveries are planned to begin in the fall of 2013 and are expected to be completed by year-end 2014. Pinnacle's 140 CRJ-200 aircraft will be removed from operation over the next two to three years.   

A Bridge Agreement that provides transitional payments, furlough benefits and specified career opportunities at Delta to Pinnacle's pilots in conjunction with the recently negotiated letter of agreement between Pinnacle and ALPA.   

A letter of agreement to amend Pinnacle's collective bargaining agreement with the ALPA pilots. This letter of agreement and the Bridge Agreement are subject to ratification by the ALPA membership by Jan. 15, 2013.   

A restructuring support agreement among Pinnacle, Delta and the Creditors' Committee setting forth certain principal terms for a plan of reorganization to emerge from Chapter 11. The reorganization plan will provide for Delta or an affiliate to acquire the equity in the reorganized Pinnacle Airlines Corp. after it emerges from bankruptcy. Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors' Committee by Feb. 15, 2013. 

 

 

Pinnacle filed motions with the Bankruptcy Court seeking approval of the various components of the comprehensive agreements. All of the components of the comprehensive agreements are interdependent and are subject, among other things, to Court approval. 

"The agreements we have reached represent a significant milestone in Pinnacle's restructuring and provide a clear and achievable path toward emergence from Chapter 11," said John Spanjers, president and CEO of Pinnacle Airlines Corp. "Pinnacle will be well positioned to emerge from the bankruptcy process with a viable business plan that provides meaningful opportunities for our employees. We are confident that Delta will continue to be a strong partner and we look forward to working closely together to provide outstanding service and operating a safe, reliable airline. We also thank our partners, employees and other stakeholders who have helped us achieve this significant progress in our reorganization." 

About Pinnacle Airlines Corp. is an airline holding company with 5,100 employees, is the parent company of Pinnacle Airlines, Inc. Flying as Delta Connection, Pinnacle Airlines, Inc. operates 191 regional jets on 1,000 daily flights more than 100 cities in the United States and Canada. Corporate offices are located in Memphis, Tenn., and hub operations are located in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis and New York.
 
 
Other News Stories (For the latest news please checkout our home page)
 
 
 
 
blog comments powered by Disqus  
Home Aviation News Aviation Stories Of Interest FAA Exam Upcoming Events Links To Other Sites General Aviation Helicopters Medical Factors Facing Pilots
Maintenance and Aircraft Mechanics Hot Air Balloon Aviation Training Handbooks Read Online Aviation History Legal Issues In Aviation Sea Planes Editorials
 
 ©AvStop Online Magazine                                                                 Contact Us                                                  Return To News                                          Bookmark and Share
 
 

AvStop Aviation News and Resource Online Magazine