Delta has changed its minds about Pinnacle

[Airboss]

I think someone at Delta missed the memo about who owned the CR9's. Delta thought that Pinnacle would lose the airplanes if they cancelled the contract. Now that they realized that Pinnacle owns them, Delta wants the First Class product, so they are going to keep flying those CR9's.

 

[rockit85]

9E and Freedom both deserved the boot in the ass out of the ATL! Sad news I was hoping they both were gone for good. 90 days is just a stay of execution.

 

[Poahi]

And it looks like they've entered the "cone of confusion" while they're at it

Funny. I'm guessing there were two reasons. First, the Mesa injunction (and presumably the Pinnacle one if granted) are going to cost something and secondly, the Justice Department isn't going to like it when Delta bullies the regionals into reducing competition while asking for a merger. If they engage in a pattern of using legal tactics to reduce competition, Congress will likely get more involved.

 

[Flyer1015]

9E and Freedom both deserved the boot in the ass out of the ATL! Sad news I was hoping they both were gone for good. 90 days is just a stay of execution.

Really? That means a lot coming from a guy who flies a Seneca.

Why don't you get a job at a regional, become a regional pilot, and THEN try and make fun of someone else losing their flying and facing furloughs.

Trust me, it's no laughing matter.

Good luck to all of us in these tough times.

 

[CRJ puppy]

I think someone at Delta missed the memo about who owned the CR9's. Delta thought that Pinnacle would lose the airplanes if they cancelled the contract. Now that they realized that Pinnacle owns them, Delta wants the First Class product, so they are going to keep flying those CR9's.

Please look at page 98 of the 2007 year end financial statement for Delta. Here you will read that Delta ordered and "owns" 40 CRJ 900 series. It outlines how they are to be divided amongst various DCI carriers (pinnacle, Comair and Mesa) and how as part of the contract that those carriers must lease (sublease) the aircraft from Delta. It also points out that if any DCI carrier stops flying for Delta or refuses to or is unable to make the payments on the 900's, then Delta alone is responsible for the lease payments on said aircraft.

This is pretty much industry standard. Those of you who remember ACA will recall that when Delta "pulled the plug" on the DoJet flying that while on Nov 1st the planes were "ACA's" that on Nov 2nd they reverted back to Delta. This is why in the previous Delta memo regarding the Pinnacle flying it said that those aircraft would be reassigned to another DCI carrier. They can reassign them because they "own" them.

So, make no mistake. Those CRJ900's while being leased by Pinnacle for now, BELONG to Delta.

Have a Delta day!

 

[sinkrate]

CRJ Puppy wrote

Please look at page 98 of the 2007 year end financial statement for Delta. Here you will read that Delta ordered and "owns" 40 CRJ 900 series.

That is true but those 40 do not include Pinnacle's aircraft. Pinnacle alone is responsible for those AC. Had they left the widget tail family they would very likely end up with a red tail still operated by the same crews. The PCL crews will tell you that Delta's ground support for the regionals does not come any where close to the support NW provides. It has been a real culture shock to go back to doing business the way it was done 15 years ago with turbo props. Most of them weren't around then so it has been a steep learniong curve.

 

[redflyer65]

The 900's are completely financed by PCL. No Delta money involved.

 

[RJLoser]

9E and Freedom both deserved the boot in the ass out of the ATL! Sad news I was hoping they both were gone for good. 90 days is just a stay of execution.

Someone poop in your sandbox?

 

[rogerwilcoout]

Anderson couldn't pull the plug on his buddy's Airline.

You still have not posted a source and I have not seen anything on this. I think this might be a bs post, not that 90% on here isnt anyway.

 

[trip]

This shows a real lack of leadership at the highest level coming from Delta wich is a bit disturbing, more along the lines of what U would pull. It seems as managment shot from the hip until the legal dept. said whoa, we better take another look here.

Regarding Delta ground ops in ATL - very pathetic handling of the CRJ, like they have just showed up yesterday. In the rampers defense it seems as if they have little or no training on just about every aspect of ground handling the CRJ.

 

[CFI2766]

Source, please?

Anyone have a source?

Good for the PCL guys if true.

 

[Indy319FA]

This is pretty much industry standard. Those of you who remember ACA will recall that when Delta "pulled the plug" on the DoJet flying that while on Nov 1st the planes were "ACA's" that on Nov 2nd they reverted back to Delta. This is why in the previous Delta memo regarding the Pinnacle flying it said that those aircraft would be reassigned to another DCI carrier. They can reassign them because they "own" them.

This isn't correct. ACA "put" the aircraft to Delta per the contract. If DL canceled the contract for anything other than performance reasons, then ACA could choose to keep the aircraft or make Delta take the leases. DL was watching our performance numbers very closely in the summer and fall of 04 hoping that we would not be able to make our performance numbers (and with the engine issues it was very close) so ACA would be stuck with the aircraft. DL had no say where the aircraft ended up. It was entirely up to ACA, and because there was no need for them with Independence Air, ACA exercised the option to put the leases to Delta.

Also, if you read the initial press release from Pinnacle, it says:

Under the agreement, Pinnacle will directly acquire and finance the aircraft. Pinnacle will take delivery of the aircraft between November 2007 and July 2008, with scheduled service as a Delta Connection carrier beginning in December 2007. The term of the agreement is for ten years

Which means Pinnacle owns the airplanes, and the only way DL will get them is if the contract is violated and Pinnacle decides to assign the leases to Delta.

 

[PeanuckleCRJ]

You still have not posted a source and I have not seen anything on this. I think this might be a bs post, not that 90% on here isnt anyway.

It's pretty common knowledge that Anderson and Trenary have a long running good history with each other. Anderson's days at NWA were when Pinnacle had it's exponential growth.

 

[Butters]

You still have not posted a source and I have not seen anything on this. I think this might be a bs post, not that 90% on here isnt anyway.

I agree. You'd think they would announce something about it. The stock didn't do a thing today.

 

[TurboAWD]

The "ownership" of the CRJ900's is more complicated than any of you seem to realize. Both PCL and Delta have there name on the aircraft in some way. I don't really understand it, and I doubt any of you do either.

You should be careful with "facts".

Here's one for you: We are all f'd.
What's that number for truckmasters? Oh, wait, they are f'd too.

Perhaps I could become a gigolo. I would probably have to loose about 15 lbs to get the high-end good paying female clients though...


Turbo