Pinnacle Airlines, Operator of Delta Connection, United Express, and US Airways Express Flights, Files Chapter 11

By Paul Riegler on 1 April 2012
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Pinnacle Airlines announced it has filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

Pinnacle Airlines Corp. has revenues of $1 billion and 8,000 employees.  It is the parent of Pinnacle Airlines, Inc. and Colgan Air, Inc. and operates Delta Connection, United Express, and US Airways Express Flights.

In a statement released Sunday night, the airline said it will develop “a comprehensive turnaround plan aimed at addressing its operational and financial challenges in a rapidly evolving airline industry.”

The airline’s CEO, Sean Menke, said that the airline’s “current business model is not sustainable, as increasing operating expenses, liquidity constraints, business integration delays and difficulties associated with combining our operations have hindered our ability to maximize our growth potential.”

Pinnacle intends to provide passengers “with safe, reliable and timely service” in conjunction with its network partners.”  The airline has a commitment for debtor-in-possession financing from Delta Air Lines.

The airline previously filed withdrawal notices with the U.S. Department of Transportation for its Essential Air Service (EAS) markets currently served by its Colgan Air subsidiary with Saab 340 turboprops. Pinnacle plans to ground its remaining Saab 340 aircraft, which Colgan operates for United Express,  by August 1, 2012 and ground its Bombardier Q400 turboprop fleet by the end of November.

The airline operates 199 regional jets and 62 turboprops on over 1,500 daily flights to 188 cities and towns in the United States, Canada, Mexico, and Belize.


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