Thursday, January 3, 2013
Pinnacle Airlines to Become Delta Subsidiary
Pinnacle Airlines has reached comprehensive agreements with Delta Air Lines, the Air Line Pilots Association (ALPA) and committee of unsecured creditors that will allow it to exit Chapter 11 Bankruptcy and become a Delta subsidiary.
Pinnacle, which is based in Memphis, Tenn., must file a reorganization plan acceptable to Delta and the creditors’ committee by Feb. 15 to officially exit bankruptcy. The new business plan will transition Pinnacle to operating a fleet of 81 two-class regional jets for Delta. Pinnacle will require $30 million in additional borrowing capacity for operations and $22 million to pay its pilots.
The airline entered filed for bankruptcy in April 2012 after attempting to unsuccessfully expand its regional operations for United Airlines and US Airways.
"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,” said John Spanjers, president and CEO of Pinnacle Airlines. More