Delta axes Pinnacle's flying

[ohplease!]

told ya' so..... good bye and god riddance.....oh yeah, leave the keys for those 90's on the seat as you leave

 

[silver02ex]

told ya' so..... good bye and god riddance.....oh yeah, leave the keys for those 90's on the seat as you leave

You wish... When Pinnacle leaves ATL the airlplane will leave also.

Under the agreement, Pinnacle will directly acquire and finance the aircraft. Pinnacle will take delivery of the aircraft between November 2007 and July 2008, with scheduled service as a Delta Connection carrier beginning in December 2007. The term of the agreement is for ten years.

N-number : N162PQAircraft Serial Number : 15162
Aircraft Manufacturer : BOMBARDIER INC
Model : CL600-2D24
Engine Manufacturer : GE
Model : CF34-8C5
Aircraft Year : 2008
Owner Name : PINNACLE AIRLINES INC
Owner Address : 1689 NONCONNAH BLVD STE 111
MEMPHIS, TN, 38132-2111
Type of Owner : Corporation
Registration Date : 01-Feb-2008
Airworthiness Certificate Type : Standard
Approved Operations : Transport

 

[wms]

Keeping the airplanes means nothing if there's no one to fly them for And it's not like they're the only -900s around.

 

[Broke in CVG]

Actually, DL owns those airframes.... they are only registered in Pinnacle's name.

Delta Air Lines adds to Bombardier CRJ fleet

February 2007

Delta Air Lines has placed a firm order for 30 CRJ900 regional jets and taken options on 30 additional CRJ900 aircraft. Contract value of the 30 firm ordered aircraft is approximately $1.1 billion US and could rise to $2.3 billion if all options are exercised.

"The fit with our fleet, timing of delivery and ownership economics made the Bombardier CRJ900 aircraft the best overall solution to our need," said Shawn Anderson, Delta's Vice-president of Delta Connection.

Steven Ridolfi, President of Bombardier Regional aircraft noted that Delta Air Lines and Delta Connection have been CRJ customers since 1989 and currently operate more than 350 CRJ aircraft. "Delta has played a major role in the success of the CRJ program and we are grateful for their continuing confidence in our regional jet products," he said.

 

[SEVEN]

Pinnacle will not keep those airplanes. DAL owns them as mentioned and registers them to 9E. The fate of Pinnacle with reference to the DAL/NWA merger was set in place long ago. Unless they get firm replacement orders soon, they are in deep trouble. The 200 flying will be drastically reduced when options for the 900 and 170 are exercised with Compass/Mesaba.
I often thought there might be a place for Pinnacle to operate the 900 for NWA, but after the latest news, I think this is the tip of the iceberg and the writing is on the wall. No doubt, the next 12 months will be trying times for some of the DAL/NWA regional carriers.

 

[DTWFO]

Why is this so hard to understand?? Pinnacle owns the 900's. They bought them. From the annual report:


Property and Equipment Nature of Estimates Required: More than 35% of our total assets are invested in property and equipment, which will continue to increase as we acquire additional aircraft to support our new agreements with Delta and Continental.

Item 1.01 Entry into a Material Definitive Agreement
On October 3, 2007, Pinnacle Airlines Corp. and its operating subsidiaries (collectively, the "Company"), entered into the second of two short-term pre-delivery payment financing facilities (the "Facility") with Export Development Canada ("EDC") for up to $38.5 million to finance certain pre-delivery payments to Bombardier, Inc. ("Bombardier") under the Company's aircraft purchase agreements.


Overview During the third quarter of 2007, we continued to make progress in what we have identified as a significant year of transition for the Company. We have continued to prepare for our new operations with Continental Airlines and Delta Air Lines by entering into agreements to obtain financing for the Q400 and CRJ-900 aircraft pre-delivery payments. We further increased shareholder value through our recently expanded share repurchase program, and through continued use of our hedging program, designed to reduce our exposure to interest rate risk related to financing our aircraft purchases.

Delta does NOT own these planes...period.

 

[rickair7777]

Duplicate Post.....

 

[rickair7777]

Here's a little business perspective for the aviation science grads. I'm not in this mess, so nothing personal or emotional, just business logic.

PCL does not have many options to re-utilize the airplanes. Not many scopes allow regional 900 flying, not to mention to state of the industry (downsizing).

Best option: Get DAL to reinstate the flying. If not, then get them to buy out the contract. This will at least provide income/profit to safeguard management bonuses...which is what it's REALLY all about, if you didn't know.

Plan B: Hope mesa tanks, and pick up some Airways 900 flying.

NWA is probably not an option...they are in a merger process with, guess who? Delta Airlines! They are not likely to piss off their wedding partner by turning around and hiring their rejects. Stranger things have happened, but still.

Also, I'm pretty sure that PCL does not "own" the 900's, rather they "lease" them. What will happen if they can't make the payments? Reference the home mortgage industry for more details. If they cannot cover their leases, they will unload the airplanes in a flash. The good news is that 900's are a hot commodity, and they may be able to re-lease them at a markup...ensuring positive cash flow and management bonuses. These people are NOT in business to fly airplanes or employ pilots...they just want to make money.

Best of luck to the pilots.

 

[DTWFO]

Also, I'm pretty sure that PCL does not "own" the 900's, rather they "lease" them. What will happen if they can't make the payments? Reference the home mortgage industry for more details. If they cannot cover their leases, they will unload the airplanes in a flash. The good news is that 900's are a hot commodity, and they may be able to re-lease them at a markup...ensuring positive cash flow and management bonuses. These people are NOT in business to fly airplanes or employ pilots...they just want to make money.

Best of luck to the pilots.

You are correct. PNCL is just leasing the airplanes. It is just irritating to see how many people are foaming at the mouth to get their hands on these airplanes. And also those claiming they are the authority on something they know NOTHING about.

 

[Spicepilots]

And also those claiming they are the authority on something they know NOTHING about.

FI would not exist otherwise