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

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[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.