Pinnacle Reaches Terms with NWA
A new code-share contract with Northwest Airlines (NWA) will allow Memphis-based Pinnacle Airlines to keep its fleet of 124 Bombardier CRJs, potentially fly 76-seat jets and enter code-share deals with other major airlines. Under the 10-year deal, Northwest will also assign Pinnacle another 17 CRJ200s and/or CRJ440s by the end of the year. However, if Pinnacle fails to sign a new labor contract with its pilots by March 31, Northwest may remove the airplanes at a rate of three per month. Pinnacle may not fly into or out of Northwest hub cities for other airlines, and Northwest can remove one aircraft for every two that Pinnacle operates for a new partner beyond 20 regional jets. However, Northwest can remove no more than 20 aircraft and no more than five in any 12-month period. The new deal settles Pinnacle’s pre-bankruptcy petition claims against Northwest with a new unsecured claim of $377.5 million, and gives Northwest the right to exchange CRJ200s in Pinnacle’s fleet for aircraft configured with 70 or more seats.