» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 126 | NO. 239 | Thursday, December 08, 2011

Pinnacle Airlines to Ask Creditors for Help

AP

Print | Front Page | Email this story | Comments ()

MEMPHIS (AP) Pinnacle Airlines Corp., which operates regional flights as Delta Connection, United Express and US Airways Express, said Thursday that it's trying to make deals with its major airline partners, creditors and employees to cut costs and reduce its debt.

"Pinnacle Airlines Corp. is facing a convergence of events that, if left unaddressed, will make 2012 an extremely challenging year," President and CEO Sean Menke said in a statement.

Its shares dropped 12 cents, or 6.1 percent, to $1.79 in morning trading Thursday.

The airline lost $8.8 million in the first nine months of this year in contrast to a profit of $17 million in the same period a year earlier. Revenue improved in that time, but costs accelerated at a faster pace. It ended the third quarter with $81.8 million in cash and cash equivalents.

Pinnacle said it will try and modify its deals with Delta Air Lines Inc., United Continental Holdings Corp. and US Airways Group Inc., the companies that lease its equipment and real estate, debt holders and vendors. The company will also ask its pilots and other employees, both union and non-union, to help it reduce costs. In addition, Pinnacle said it's looking at its business structure and executive functions for possible ways to streamline the operation.

Pinnacle has about 7,800 employees. It's the parent company of Pinnacle Airlines, Mesaba Aviation and Colgan Air.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 69 311 15,028
MORTGAGES 83 338 19,668
FORECLOSURE NOTICES 0 43 3,838
BUILDING PERMITS 0 512 35,842
BANKRUPTCIES 65 247 14,281
BUSINESS LICENSES 16 120 5,111
UTILITY CONNECTIONS 70 316 21,749
MARRIAGE LICENSES 18 93 4,650

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.