Colgan / Pinnacle Corp rumor

altimaklr

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Rumor is...

Due to the fallout and lawsuits from the Buffalo crash, Pinnacle Corp will transfer the Q400's and probably the Saabs to Pinnacle Inc, Pinnacle Corp (aka Colgan) will be spun off and probably go into bankruptcy. FWIW, this is very similar to what happened with Valuejet/Airtran.
 
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Broke in CVG

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Nope, not going to happen. You can't use BK to evade liability lawsuits. Insurance will cover the loss.
 

SLUF4

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Is that not what the peanut company in GA just did? I heard they declared BK so they wouldn't get sued.
 

Raoul Duke

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all lawsuits from crashes hits the insurance. I am sure Colgan and PNCL are on the same policy (single policy results in a combined lower premium). The insurance provisions would be required under the CO codeshare agreement and are likely clost to 500M. There is no incentive to move the aircraft because the policy premiums will be the same either way.
 

nethan

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I don't know about the liability insurance, but last I knew the hull insurance is through Delta out of all things.
 

i fly boxes

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I am sure that this rumor was probably started by a bunch of middle management types with no actual info.
 

CALRepublic

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Flew on Colgan last week, talked to the F/A , she said "no lawsuit yet", I said "give it time, this is America, home of the get rich quick, it's coming".

Two days later the lawsuit was announced. There was no doubt in my mind about it. These days people will take you to court over turbulence or a hard landing
 

quinnlake

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Flew on Colgan last week, talked to the F/A , she said "no lawsuit yet", I said "give it time, this is America, home of the get rich quick, it's coming".

Two days later the lawsuit was announced. There was no doubt in my mind about it. These days people will take you to court over turbulence or a hard landing
-- or dying.
 

brokedash

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-- or dying.
People will sell their souls for a quick buck. And there too many leech lawyers hungry to take 90% of what is awarded and usually the award is a propostersly high amount.
 

rickair7777

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In the case of colgan, they probably need to get to sued, unless the NTSB determines that it was hit by a meteor.

The families are due something, and the insurance company would lowball them if they did not sue...just the way it is. There are kids to support, and put through college...

Once a lawsuit is filled, it is too late to hide assets. I'm sure that Colgan's insurance will get maxed out, but they will also tap CAL...their policy is probably worth one billion or more.

As to whether this will affect 9E, it all depends on the corporate structure...9E will probably be shielded if the corporations were built properly.
 

Top Gum

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I was working for Valuejet back in those days and it seems like they mostly wanted a new name so that the pax didn’t associate them with the accident. They may have had other reasons but I think it was primarily driven by marketing rather than liability.
 

hockeypilot44

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I was working for Valuejet back in those days and it seems like they mostly wanted a new name so that the pax didn’t associate them with the accident. They may have had other reasons but I think it was primarily driven by marketing rather than liability.
That is not something to be proud of. In fact, I would be embarrassed to tell people I flew for Valujet.
 

Raoul Duke

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In the case of colgan, they probably need to get to sued, unless the NTSB determines that it was hit by a meteor.

The families are due something, and the insurance company would lowball them if they did not sue...just the way it is. There are kids to support, and put through college...

Once a lawsuit is filled, it is too late to hide assets. I'm sure that Colgan's insurance will get maxed out, but they will also tap CAL...their policy is probably worth one billion or more.

As to whether this will affect 9E, it all depends on the corporate structure...9E will probably be shielded if the corporations were built properly.
They will not come anywhere close to maxing out the policy. Recovery is based on your life expectancy and earning capacty and not much else. All of the cases will settle long before going to court. Look at the Comair crash, they settled with every passenger and those were terrible facts for the Company.
 

Top Gum

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That is not something to be proud of. In fact, I would be embarrassed to tell people I flew for Valujet.

I certainly wasn’t trying to come across as being proud.

Why would you be embarrassed?
 

Windsor

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I miss valujet....they had the best callsign......Critter
 

glasspilot1

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I was working for Valuejet back in those days and it seems like they mostly wanted a new name so that the pax didn’t associate them with the accident.

Gum, you beat me to it! Didn't VJ buy Airtran (which was a small separate airline then) to get the new name, to disassociate itself from the old name?
 

OK Bud!

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I am sure that this rumor was probably started by a bunch of middle management types with no actual info.

By middle management, I assume you mean senior captains that just think about the good ole days.
 
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