Delta shenanigans

[dvmthwsvan]

How in the world can a judge allow Delta to do this. Pinnacle will be right back in BK in a few years!!!

http://www.bloomberg.com/news/2012-05-16/pinnacle-airlines-can-take-delta-s-74-million-loan.html

 

[i fly boxes]

Delta is powerful. This is good news for pinnacle pilots without that money we are out of business. Anyone who wants their own company to shut down obviously must be getting money and health insurance from somewhere else

 

[altimaklr]

Delta is running the show now, and 9E will be mostly owned by Delta ala Comair.

 

[comrcap]

I wonder if leo Mullins holding company has the leases on pncl aircraft?

 

[flyboyike]

Delta is running the show now, and 9E will be mostly owned by Delta ala Comair.

If that's true, then liquidation would have been better news, trust me.

 

[777forever]

I believe this is Delta's way of solving two problems, one, keeping Pinnacle running until more MD-90s get on property to replace 50 seat flying and secondly, the loan might be the pre-paid contract termination fee for however many 50 seaters $74 million in fees gets rid of.

 

[enuffalready]

Delta is running the show now, and 9E will be mostly owned by Delta ala Comair.

when has delta not been running the show? they dictate schedule, contracts, aircraft, scope, marketing, tickets.

 

[Sherpa]

"The loan requires Pinnacle to take on money-losing contracts to provide services to Delta and sets a timeline for it to renegotiate labor terms with its unions and file an exit plan"

So Delta sets them up for failure with money-losing contracts and leaves it up to the employees to do the real bailout, that's how I interpret the statement. How much can a regional squeeze from already underpaid employees? Not good for pilots at Pinnacle or anyone trying to raise the bar. The hope the Big D TA didn't cave on scope so some folks can see some eventual movement in the right direction.

 

[Pilot Hopeful]

“Pinnacle has also said its $74.3 million loan from Delta would help it repay a $44.3 million debt to the larger airline.” How does borrowing money from a creditor “help” to repay a loan to that same creditor?

 

[777forever]

“Pinnacle has also said its $74.3 million loan from Delta would help it repay a $44.3 million debt to the larger airline.” How does borrowing money from a creditor “help” to repay a loan to that same creditor?

I'm guessing it's some accounting mumbo jumbo

Sent from my HTC One X using Tapatalk 2

 

[altimaklr]

when has delta not been running the show? they dictate schedule, contracts, aircraft, scope, marketing, tickets.

Pinnacle was a publicly traded company with an independent board of (incompetent) directors ... After 9E exits CH11, Delta will be the majority shareholder and will control every aspect of the company (including who sits on the board, hires a CEO, enters new contracts), not just the schedules.

 

[kf4amu]

“Pinnacle has also said its $74.3 million loan from Delta would help it repay a $44.3 million debt to the larger airline.” How does borrowing money from a creditor “help” to repay a loan to that same creditor?

That's exactly what our banking system does with the Federal Reserve. Except its fake money, so they can print it out of thin air but the concept is the same.

 

[Snaab]

Well, I guess the only good news is that liquidation is off the table (for now). But this DIP financing sounds shady... So going forward, we have to rely SOLELY on Daddy Delta, it's financing, and low-ball way of doing business for our salvation. As someone said earlier, good that we have a paycheck and health insurance (as opposed to a liquidation), but jeez- how much worse can conditions get for Pinnacolaba going forward?

I think there's a much bigger picture going on here (for better or worse) that's been orchestrated and thought out for a long time. Who knows what's really going on behind the scenes..

 

[cbrown1]

Delta is cutthroat with their regionals. Funny thing is 5 years ago it was the opposite, they let regionals paint their airplanes the way they wanted, they could have 100% of the feed in one hub and ect. Now it's like a nike factory in china. It wouldn't surprise me if they tried to merge pncl with comair and try to sell it off again.

 

[filejw]

Delta is cutthroat with their regionals. Funny thing is 5 years ago it was the opposite, they let regionals paint their airplanes the way they wanted, they could have 100% of the feed in one hub and ect. Now it's like a nike factory in china. It wouldn't surprise me if they tried to merge pncl with comair and try to sell it off again.

That is the NWA in Delta , they always want the regionals under contract to them for fly for only NWA.

 

[Plainsman]

Does Richard Anderson go by Dick? If not he should!

 

[General Lee]

I believe this is Delta's way of solving two problems, one, keeping Pinnacle running until more MD-90s get on property to replace 50 seat flying and secondly, the loan might be the pre-paid contract termination fee for however many 50 seaters $74 million in fees gets rid of.

Rumor has it (on the Major's board) that there could be a 717 payrate in the TA. I don't know if that is true, but the 717 could replace a lot more of the RJ flying than the MD90. I believe there are 88 Airtran 717s, and 25 or more out there in the desert (mostly ex Mexicana Click and before that Midwest). There are also rumors out there stating Delta wants some more 76 seaters in exchange for a large pulldown of those 50 seaters. It wouldn't be one for one, but a chunk of 76 seaters for a larger chunk of 50 seaters going away. We shall see.


Bye Bye--General Lee

 

[xjhawk]

Delta has already got the CEO they want in there-The same one NWA put in charge of Mesaba during the last bankruptcy.

 

[ultrarunner]

Rumor has it (on the Major's board) that there could be a 717 payrate in the TA....
Bye Bye--General Lee

The 717 is the DC-9-30 size airframe. Don't you have that in the contract now, or just the larger -50 series?

Ultra

 

[General Lee]

The 717 is the DC-9-30 size airframe. Don't you have that in the contract now, or just the larger -50 series?

Ultra

That is true, the DC9s that are left are the -50 series.(maybe 17 left?) I was told recently that they may stay in the fleet now until 2014, and rumor has it that not one but two sims now are being shipped from Natco in MSP to ATL.

If a new contract comes out and the 717s are a part of the fleet plan (???) , and they know at that time they are getting some of those planes, I would think there could be a payrate for it in there. We'll just have to see if that all pans out. Lots of rumors out there that haven't been verified yet.


Bye Bye---General Lee

 

[Full of LUV]

when has delta not been running the show? they dictate schedule, contracts, aircraft, scope, marketing, tickets.

That is the NORMAL Contractor-Subcontractor relationship

 

[jetstream]

This is bad. Very bad.

Delta is in effect doing its own connection flying now. It is funding the operation and setting the price it will pay for it.

 

[Full of LUV]

This is bad. Very bad.

Delta is in effect doing its own connection flying now. It is funding the operation and setting the price it will pay for it.

I guess if people quit or don't apply, they will know when they have found the sweet spot. This is an exaggerated example of what happens when you have no scope (which regionals as contractors by default have no control over).

Hope mainline sees that scope is everything, otherwise you have nothing.

The best payrates don't mean squat if the jobs just evaporate..

LUV

 

[Flyer1015]

“Pinnacle has also said its $74.3 million loan from Delta would help it repay a $44.3 million debt to the larger airline.” How does borrowing money from a creditor “help” to repay a loan to that same creditor?

Simple! If I owe you $10 bucks, just give me $20 bucks and I'll pay your $10 bucks right then and there! What? You've never done that before?

 

[Whataboutbob]

Any chance of Delta reinstating the flow through for Pinnacle pilots to help get the Pinnacle pilot group to quickly bite on a bankruptcy contract (not saying everything on the 1113 term sheet) but probably the 5% plus other work rules and benefits??

Better yet any chance if it's reinstated it only include the former Mesaba pilots, grandfather in the old deal ))

Just trying to stir the pot a little bit.

 

[i fly boxes]

Just wear your 4 bars upside down again to show delta you can fly the "nine" and I'm sure that can be arranged

 

[jetstream]

I remember, post 911 when Delta was in serious trouble, us doing everything we could to help Delta cut expenses. Project APU, single engine taxi, flying in fuel savings mode, etc. Then as soon as they get profitable again they begin screwing us.

F#%* 'em!

I believe that some day, some how, all this will come back to bite Delta on the ass.

Karma.

 

[Meiguy]

Rumor has it (on the Major's board) that there could be a 717 payrate in the TA. I don't know if that is true, but the 717 could replace a lot more of the RJ flying than the MD90. I believe there are 88 Airtran 717s, and 25 or more out there in the desert (mostly ex Mexicana Click and before that Midwest). There are also rumors out there stating Delta wants some more 76 seaters in exchange for a large pulldown of those 50 seaters. It wouldn't be one for one, but a chunk of 76 seaters for a larger chunk of 50 seaters going away. We shall see.


Bye Bye--General Lee

You say that like it's a good thing. We don't need to allow ANY 76 seaters to get rid of something where the price of fuel will take care of for us.

 

[N813CA]

Its all about the contracts.. Now Delta owns the contract for Pinnacle... It will become the next Comair. SAD, very sad.

 

[joepilot29]

Its all about the contracts.. Now Delta owns the contract for Pinnacle... It will become the next Comair. SAD, very sad.

Welcome to the suck! Being wholly owned is awesome!!!! New rumor I heard was us ie OH being merged with 9E since Delta basically owns 9E. That was from a 9E pilot!