Not sure of the details, just passing on the info.
Pinnacle Airlines Shares Slip After Analyst Sees Few Prospects From Northwest Labor Deal
NEW YORK (AP) -- Pinnacle Airlines Corp., which operates regional flights primarily for bankrupt Northwest Airlines Corp., saw its shares lose ground on Monday after an analyst said Northwest's recent labor agreement included little promise for Pinnacle.
On Friday, Northwest and its pilots reached a pay-cut deal. The country's fourth-largest airline said it got the $358 million in savings it sought, but other details weren't released.
A central issues in the talks was who will fly smaller regional jets, including 70-seat planes. Northwest had proposed forming a new subsidiary for that service.
JPMorgan analyst Jamie Baker said in a client report that with the formation of a subsidiary staffed by Northwest furloughees, "it appears the potential for a 70-seat growth allocation to Pinnacle is slim."
Although Pinnacle will likely continue to fly its 124 50-seat planes on behalf of Northwest, the lack of 70-seat growth "doesn't make for attractive risk-reward" at the current stock price, Baker said.
Baker maintained his "Underweight" rating on Pinnacle's stock.
Pinnacle shares shed 39 cents, or 5.3 percent, to $6.93 in midday trading on the Nasdaq. The stock has bounced between $4.42 and $11.25 over the past 52 weeks.
Pinnacle Airlines Shares Slip After Analyst Sees Few Prospects From Northwest Labor Deal
NEW YORK (AP) -- Pinnacle Airlines Corp., which operates regional flights primarily for bankrupt Northwest Airlines Corp., saw its shares lose ground on Monday after an analyst said Northwest's recent labor agreement included little promise for Pinnacle.
On Friday, Northwest and its pilots reached a pay-cut deal. The country's fourth-largest airline said it got the $358 million in savings it sought, but other details weren't released.
A central issues in the talks was who will fly smaller regional jets, including 70-seat planes. Northwest had proposed forming a new subsidiary for that service.
JPMorgan analyst Jamie Baker said in a client report that with the formation of a subsidiary staffed by Northwest furloughees, "it appears the potential for a 70-seat growth allocation to Pinnacle is slim."
Although Pinnacle will likely continue to fly its 124 50-seat planes on behalf of Northwest, the lack of 70-seat growth "doesn't make for attractive risk-reward" at the current stock price, Baker said.
Baker maintained his "Underweight" rating on Pinnacle's stock.
Pinnacle shares shed 39 cents, or 5.3 percent, to $6.93 in midday trading on the Nasdaq. The stock has bounced between $4.42 and $11.25 over the past 52 weeks.
