Delta axes Pinnacle's flying

[Flyprdu]

It is just irritating to see how many people are foaming at the mouth to get their hands on these airplanes.

Bunch of vultures if you ask me.

 

[joe_pilot]

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.

I find it to be not only irritating, but disgusting.

For the record, I am an ATL based OO pilot who hopes something can be worked out for you guys to keep the flying.

Short of that, the best thing would be for the work to return to mainline.

Good luck guys.

-JP

 

[norskman2]

You are correct. PNCL is just leasing the airplanes.

No. DAL required that 9E purchase the airplanes as part of the contract.

 

[B.T.Justice]

No. DAL required that 9E purchase the airplanes as part of the contract.

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.



So your saying the 9 aircraft are completely paid off, and free of all liens? Thats about 315M, for 9 aircraft, and 560M for all 16. Where did PNCL come up with that cash?

PNCL "owns" the airplanes, like I own my house. Well I own about 23% of it, the bank owns the rest.

05/08/2008
Peter Hunt
Well, the total of the new aircraft we're adding is 31. We added three in the fourth quarter of '07 and then we got those 28 that come in '08 and January '09, and the total investment on the fleet is $660 million, of which $100 million is financed by Pinnacle. It's come out of our pocket and then $560 million of the $660 million is financed through Export Development Canada, where we're borrowing the funds from EDC in 15-year mortgage-style loans.

It sounds to me like Export Development Canada owns the airplanes.

 

[TOOL CRIB]

Pinnacle can always start branded flying!

 

[SmitteyB]

Guys-

Pinnacle owns the CRJ900's. They are financed. EDC holds the certificate of ownership.

Pinnacle owns the Q400's. They are financed. EDC holds the certificate of ownership.

What is soooo hard?

Pinnacle has a LOT of cash. Nothing like Skywest, but not bad either.

If PNCL cannot put these airplanes into a CPA, they will lease them overseas. Management reaps bonuess.

 

[theo]

If Pinnacle cannot find a place to fly the 900's then they will need to dump them. My guess is they have the option of giving them to DAL. DAL will take them and turn around and fly them using Comair pilots. That explains why Comair is continuing to hire and train 900 pilots. Seems like DAL has a plan, they are in the middle of executing that plan. Also DAL probably has the option to pick up any deliveries Pinnacle fails to take, those too probably end up at Comair.