Memphis-based Pinnacle Airlines on Wednesday officially emerged from bankruptcy as a wholly owned regional subsidiary of Delta Air Lines.
Pinnacle Airlines subsidiary Colgan Air performed its last revenue flight on September 5. Flight 3923, a Bombardier Q400 operating as United Express, flew from Washington Dulles International Airport to Albany International, arriving at 8:11 a.m. local time.
Pinnacle entered Chapter 11 bankruptcy protection April 1 and on that same day announced its plan to “wind down” all its turboprop flying and close Colgan by November 30. United’s ability to reach a deal quickly with Republic Airways to fly the 28 Q400s leased by Colgan allowed Pinnacle to accelerate the closure process.
Pinnacle Airlines has resumed talks with its employee groups over contract concessions, following a recalculation of the cost savings it says it needs to emerge from Chapter 11 bankruptcy protection. According to Pinnacle, it now needs to shed $76 million to return to viability due in large part to Delta Air Lines’ plans to shed more than 200 fifty-seat regional jets from the Delta Connection system. It originally asked for $43 million in concessions.
A Saab 340 operated by Silver Airways as a United Express flight landed on the 3,200-foot by 75-foot runway at Fairmont Municipal Airport-Frankman Field in West Virginia on August 7. Its intended destination was nearby West Virginia Central Airport, serving Bridgeport, W.Va. Cabs took all the passengers to Bridgeport. Silver Airways took over the service from Colgan Air on August 1.
Bankrupt Pinnacle Airlines suspended negotiations over pay concessions with its unions while it “reformulates” its business plan in an effort to issue a more competitive contract offer to mainline partner Delta Air Lines, according to a June 22 letter sent by CEO John Spanjers to all employees.
Made public in a filing with the Securities and Exchange Commission, the letter said that Delta told Pinnacle management that its competitors had submitted bids for Bombardier CRJ900 flying that undercut Pinnacle’s current rates by a “significant” margin.
Current Pinnacle Airlines COO John Spanjers will replace Sean Menke as chief executive of the Memphis, Tennessee-based regional airline group on June 1, Pinnacle said in a statement issued Thursday. Menke, who, according to Pinnacle, has chosen to resign from the company, has agreed to help with the leadership transition over the next five weeks.
Memphis-based Pinnacle Airlines filed for Chapter 11 bankruptcy protection on April 1, marking the start of a process in which it plans to “wind down” all its United Airlines turboprop flying, including its Colgan Air Bombardier Q400 operation.
The FAA proposed levying a civil penalty of $153,000 on Colgan Air last month for allegedly operating 17 flights without giving pilots or flight attendants the required minimum amount of rest.
Export Development Canada (EDC) has agreed to defer $16.6 million worth of loan payments for the fleet of Bombardier Q400 turboprops operated by Pinnacle Airlines subsidiary Colgan Air, a Pinnacle filing with the Securities and Exchange Commission revealed in late January. According to the document, the EDC agreed to defer payments and withhold any “enforcement action” from January 14 through March 31.
The world breathed a sigh of relief as 2011 came to a close; aviation had experienced two remarkably safe years, following 2009, during which two extraordinary airline accidents focused the public’s attention on what appear to be serious lapses in fundamental airmanship.
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