Did Pinnacle file, or not?

[Rossa]

Quick question:
Did 9E file for chpt 11, or not??
If not, why not?

I was under the impression that 9E was being screwed just as hard as XJ.

 

[Andy Neill]

PINNACLE AIRLINES CORP Files SEC form 8-K, Other Events

 

[norskman]

Nyet.

 

[Mesabi Miner]

Quick question:
Did 9E file for chpt 11, or not??

Nope.

If not, why not?

Why should they? We didn't need to file either.

MM

 

[Lear70]

No, and we most probably won't. NWA is REQUIRED to start paying us now for any flying we perform per bankruptcy law, so cash will start flowing again.

Think about WHY a carrier would file.

1. Renegotiate vendor contracts: our main vendor is Northwest and we use THEIR prices to obtain our catering supplies. Additionally, we pay their guaranteed fuel rate and Mesaba for ground ops in DTW and MSP at rates implemented by NW Mainline. Therefore those contract aren't really negotiable.

2. Renegotiate their labor costs: Our labor is THE cheapest in the industry. If our management went to a BR judge and asked to LOWER the rates of any unionized employee OR get more productive work rules, they would be laughed out of court and we MIGHT get MORE than we already get - we're in the middle of pay and bottom of work rules comparable with any other regional.

3. Get rid of aircraft we don't want: We don't own any.

SO, there is no benefit to us filing, the deadline to file under the OLD rules has passed, we have enough cash to survive until NWA has to start sending money again, and it would hurt our stock, already at rock bottom prices (I just bought 1,000 shares).

Does that about sum it up?

 

[PCL_128]

Lear pretty much summed it up. Our management did get advice from BK lawyers just in case we didn't make it until the payments started coming back in from Northwest, but it wasn't necessary. We're already receiving regular payments from Northwest again, so positive cash-flow has returned. We haven't received the roughly $50 million that Northwest owed us for pre-BK flying, and we probably won't. That hurt our cash position, but that's about it. We should be good from this point on. The next thing to watch for is the result of the 1113(c) filing in the first week of December when the judge rules. What will the NWA pilots do if the judge approves the scope changes? That's the big question, because I doubt the NWA pilots and management will reach an agreement on scope.