More money to NWA from 9E??

[goin' missed]

bizjournals.com

NWA extends Pinnacle's deposits deadline

Wednesday March 15, 12:07 pm ET
Northwest Airlines Corp. has extended the deadline on its request for additional sublease deposits from Pinnacle Airlines Corp., according to an SEC filing by Pinnacle.
In September 2005, Northwest requested that Pinnacle pay $21.7 million in additional aircraft sublease security deposits by March 1, 2006. After Pinnacle had disputed Northwest's right to seek additional security deposits, Northwest extended its deadline to April 15, 2006, while the parties continue ongoing discussions regarding their future business relationship.
Last week, Northwest said it is buying FLYi Inc.'s operating certificates for Independence Air, which stopped flying in January after failing to find a buyer, for $2 million. The deal paves the way for Northwest to launch its own regional subsidiary. Northwest's recent tentative agreement with the Air Line Pilots Association allows the airline to operate 76-seat aircraft.
Earlier this month, JPMorgan analyst Jamie Baker told the Associated Press that Northwest's recent labor agreement with its pilots included little promise for Pinnacle.
Pinnacle shares fell nearly 1 percent to $6.49 in early morning trading Wednesday.
Pinnacle Airlines (NASDAQ.NM: PNCL) operates under the name Northwest Airlink and provides service to destinations in the U.S. and Canada. It operates regional flights from Northwest Airlines (Pink Sheets: NWACQ - News) hubs. Pinnacle employs 3,450 people.
Published March 15, 2006 by the Memphis Business Journal</I>​

WTF?!?!?!? More money to fly jets on property? What is uncle phil and team saying about this?​

 

[fieldinsight]

Basically, NWA wants two months of deposits on hand. If 9E doesn't retain all their current flying, odds are that a Ch11 filing would be strongly considered, and NWA knows this. They also forgot to remember that they'd get screwed if a regional filed, and lost the case against XJ. they're just trying to make sure 9E doesn't cost them any money if they file.

 

[theo]

So NW leases all of the a/c for Pinnacle. They provide most of the services for Pinnacle (other than labor) thus controlling their costs to a great extent. They also have an agreement as basically the sole source of revenue for Pinnacle. Then they say they want more money for Security Deposits? I guess they know something about the risk Pinnacle is in better than anyone else. Hmmmm I wonder what hapens next? Better get the ole resume dusted off, sounds like NW has a new target.

 

[OMG7778]

My bet is this, they have put an April 15th deadline on 9E making payments, which happens to be just long enough after the MESABA ruling at the begining of the month to see the short term fall out. Then if Mesaba is successful in trashing its pilots contract 9E will file bk protection ala the Northwest payment and will follow suit with an 1113 filing of their own to hammer us.

Probably not the case but until I see other wise I will assume the worst case scenerio nothing really good has happened so far.

Fly safe out there

It is Us against the world

OMG

 

[mavdog]

My bet is this, they have put an April 15th deadline on 9E making payments, which happens to be just long enough after the MESABA ruling at the begining of the month to see the short term fall out. Then if Mesaba is successful in trashing its pilots contract 9E will file bk protection ala the Northwest payment and will follow suit with an 1113 filing of their own to hammer us.

That would work great, but Mesaba and ALPA got another month... There will be no 1113c ruling before April 25th...

http://forums.flightinfo.com/showthread.php?t=74972

 

[goin' missed]

It just blows my mind that NWA can continue to try to re-write the asa and get away with it!