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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