Bombardier Aerospace received a major boost for its sagging CRJ regional jet program on Thursday, when Delta Air Lines placed a firm order for 40 dual-class CRJ900s and reserved options on another 30.
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.
Cincinnati-based Comair will close its doors at the end September, and nearly 2,000 people will lose their jobs as a result. Granted, the reasons for the airline’s demise might not matter much to them, but perhaps an examination of the forces that led to Delta’s decision to shutter its subsidiary will prepare others for a similar fate.
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.
Last week’s vote by Delta Air Lines pilots to accept a contract proposal forged between their Air Line Pilots Association unit and airline management could carry implications for a vital subset of the industry.
The scope clause language in the tentative settlement reached between the Air Line Pilots Association and Delta Air Lines in May at first looked like a positive development for all involved.
Indianapolis-based Republic Airways has agreed with United Airlines to fly the 28 Bombardier Q400s that bankrupt Pinnacle Airlines plans to return to its lessors, Republic announced Monday.
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.