Mesaba, we hardly knew ye

[Mel Sharples]

Will be announced tomorrow that XJ is sold. We're going south, but not as far south as we all thought.

Funny, Pinnacle has a major employee webcast set for 10:30am. Draw your own conclusion.

I don't think Compass will skate on this, either. I think it's safe to say the flowthrough is going away for both companies.

Have a Happy 4th of July.

 

[altimaklr]

I don't see anything on flypinnacle about a call tomorrow? Where did you hear that?

 

[Butters]

Mesaba is now the new Colgan?!?! What an effing joke!!!

Pinnacle Airlines Corp. Acquires Mesaba Aviation, Inc.
Combined organization ‘well positioned to be a major competitive player for the long term’
MEMPHIS, Tenn – July 1, 2010 – Pinnacle Airlines Corp. (NASDAQ: PNCL) (the “Company”)
announced today that it has acquired Mesaba Aviation, Inc. from Delta Air Lines (NYSE: DAL),
for $62 million.
Previously a wholly owned subsidiary of Delta, Mesaba operates a fleet of 92 regional aircraft as
a Delta Connection carrier, and is one of the largest operators of Bombardier CRJ-900 aircraft in
the world. The acquisition enhances the Company’s position as one of the nation’s pre-eminent
independent regional airline companies.
“This transaction brings together very strong and very similar organizations,” said Phil Trenary,
the Company’s President and Chief Executive Officer. “Together, we will be even stronger, well
positioned to be a major competitive player for the long term.”
Trenary added, “Even as long-time competitors, Pinnacle and Mesaba have always had
tremendous respect for one another. We have comparable values and goals, built around
safety, respect for our people, customer service and operational excellence. We have very
similar fleets of regional jets and turboprops, and we fly complementary routes with schedules
that are already integrated as part of Delta Connection.”
Founded in 1944, Mesaba is the longest-flying regional airline in the United States. It will
remain headquartered in Eagan, Minn., under its current management team.
“We at Mesaba are excited about this partnership and the opportunities that it can provide,” said
Mesaba President John Spanjers. “Pinnacle is no longer a competitor but a partner that shares
our common goal of success and offers growth opportunities with other major carriers.”
Pinnacle Airlines, Inc. (“Pinnacle”), the Company’s regional jet operating subsidiary, also
operates as a Delta Connection carrier. In addition, the Company’s Colgan Air subsidiary
operates turboprop regional service for Continental Airlines, United Air Lines and US Airways,
minimizing the Company’s dependence on any single partner.
The total fleet consists of 202 regional jets – 57 76-passenger Bombardier CRJ-900 and 145
50-passenger Bombardier CRJ-200 – and 80 turboprops, consisting of 14 74-passenger
Bombardier Q400 and 66 34-passenger Saab SF340. The Company also has 15 firm orders for
new Q400 NextGen aircraft, with deliveries starting in August, and purchase options for an
additional 30.
Under the terms of the transaction, the Company and Delta established a new, 12-year capacity
purchase agreement effective July 1, 2010, for the operation of Mesaba’s CRJ-900 fleet. This
new CRJ-900 agreement is structured similarly to Pinnacle’s existing agreements with Delta,
2
providing for targeted levels of performance and profitability. Mesaba will continue to sublease
its fleet of CRJ-900 aircraft from Delta for the 12-year term of the related capacity purchase
agreement.
Mesaba’s CRJ-200 operations will be governed under Pinnacle’s current Airline Services
Agreement with Delta, which runs through 2017. In addition, the Company and Delta entered
into a separate, short-term capacity purchase agreement providing for the operation of
Mesaba’s Saab 340B+ fleet until they are removed from Delta Connection service in late 2011
under Delta’s previously announced retirement program.
“We have further solidified our future with Delta, which has previously signaled its desire to work
with a smaller number of strong regional partners,” said Trenary. “We also have additional
opportunities to grow with the ‘right’ product offering – a full spectrum of regional jets and
turboprops. As we grow, our emphasis will be on expanding our existing fleets of CRJ-900 and
Q400 aircraft, the most cost-effective and fuel-efficient aircraft types within their respective
classes – and what our airline partners are demanding.”
With total employment of approximately 7,700, the Company will continue to operate three
subsidiaries – Pinnacle Airlines, inc., Colgan Air, inc. and Mesaba Aviation, inc.
“Over the longer term, we anticipate that we can enhance efficiency and growth opportunities for
our airlines and our people by reorganizing around two operating airlines,” said Trenary. “Our
intent is to combine the regional jets under Pinnacle Airlines and the turboprops under Mesaba
Aviation. However, there are many complex issues to be addressed, and this will take time.”
The Company will hold a webcast for investors today at 9 a.m. CT to provide additional details​

about the transaction. Interested parties may access the webcast at

www.PNCL.com, the

Company’s Web site.
“As the industry continues to consolidate at both the major and regional carrier levels, we have
solidly established ourselves as a strong, independent regional airline corporation,” said Trenary.
“We are well positioned to succeed and grow, which will provide growth in jobs, growth
opportunities for our people and increased value for our shareholders.”​

# # #

​

 

[RiddleEagle18]

Maybe the pinnacle pilots and just get the mesba contract??

 

[JustaNumber]

Maybe the pinnacle pilots can just get the mesaba contract??

Would be nice, but more likely the Mesaba pilots will get the current Pinnacle contract, as all the XJ jets are moving to 9E. A sad day for all concerned. Let's just hope it's not at first year pay as they play musical airplanes without the pilots.

 

[johnsonrod]

Sorry to hear this news. Not sure if it is true, but I heard a bunch of Mesaba pilots passed up the chance to move on to Mother Delta recently (2nd-hand information). Bet they are gonna regret decision that if the window closes...

I also hope that they grandfather the rules for existing pilots there and Compass but you never know... Personally, I'd rather be owned by Pinnacle than Hulus at TSA - that would be torture with his management whims... Good luck to all involved!!!!!