Pinnacle asked to park some jets
Pinnacle expects its block hours and cycles in the fourth quarter of 2005 to be reduced by approximately 11% and 10%, respectively, compared to its original expected schedule operating a full complement of 139 CRJ aircraft. Pinnacle is making arrangements to place these aircraft in long-term storage.
This action is a direct result of Northwest airline’s recent filing for bankruptcy.
Management expects to reduce staffing levels through a combination of regular attrition and voluntary employee leaves. It is possible that the Company will be forced to resort to involuntary furloughs, should the number of employees electing voluntary leaves be insufficient. Pinnacle is also reviewing other components of its cost structure to reduce its costs further.
As a result of the 15 aircraft schedule reduction, Pinnacle expects fourth quarter earnings to decline between 10% and 15% as compared to its previous projections based on operating a full complement of 139 aircraft
Judy Tarver
9/27/2005
In an SEC filing yesterday, Pinnacle Airlines Corp. stated it has received a request from its airline partner, Northwest Airlines, Inc., to remove 15 CRJ aircraft from service, effective October 31, 2005. 9/27/2005
Pinnacle expects its block hours and cycles in the fourth quarter of 2005 to be reduced by approximately 11% and 10%, respectively, compared to its original expected schedule operating a full complement of 139 CRJ aircraft. Pinnacle is making arrangements to place these aircraft in long-term storage.
This action is a direct result of Northwest airline’s recent filing for bankruptcy.
Management expects to reduce staffing levels through a combination of regular attrition and voluntary employee leaves. It is possible that the Company will be forced to resort to involuntary furloughs, should the number of employees electing voluntary leaves be insufficient. Pinnacle is also reviewing other components of its cost structure to reduce its costs further.
As a result of the 15 aircraft schedule reduction, Pinnacle expects fourth quarter earnings to decline between 10% and 15% as compared to its previous projections based on operating a full complement of 139 aircraft