Pinnacle Airlines will continue to fly for Delta Air Lines as a Delta Connection carrier under its existing contract, which expires in 2017. Delta previously served notice that it intended to terminate the contract, effective July 31. Loss of the contract, while only four percent of Pinnacle’s revenues, would have meant the loss of $3.5 million per month. The agreement also retains Pinnacle’s efforts to diversify its portfolio for the moment since that diversification will end when Delta and Northwest complete their merger.
"We have tremendous respect for the people at Delta," said Phil Trenary, Pinnacle Airlines Corp.'s president and chief executive officer. "Our discussions with them were amicable and we were able to resolve the issues at hand. We look forward to building on our hard-earned reputation for operating a safe, reliable and cost-effective airline to serve what will soon be the largest air carrier in the world."
Pinnacle entered into an agreement with Delta in April 2007 to operate 16 CRJ-900 aircraft as a Delta Connection carrier and began operations under the agreement in December. Pinnacle has already taken delivery of nine of the 16 CRJ-900 aircraft on order. As part of the resolution between the parties, the in-service dates of the remaining seven aircraft will be deferred until between January and May 2009. The 76-seat CRJ-900 NextGen jet has operating costs that are the lowest among comparably sized regional jets, providing for an economic, efficient aircraft in the Delta network.