Objection to Delta's DIP financing for Pinnacle

[GRAAB HIRBOUBI]

The furloughs will go in reverse seniority order any capt displaced whether, 9e, 9l, XJ will move to where there seniority will hold.

Before saying you want out of seniority furloughs remember this...if you want it for the Q's what are you going to say when they get rid of the 200's? Does your opinion change when it involves the aircraft you're on?

I didn't like the Bloch award. But nothing will change it. Now we need to protect the list, furlough in reverse order, and try to find something else. If we allow out of seniority furloughs, that will follow us to every company we go to.

 

[DoinTime]

NWA was in bankruptcy and proceeded to continue paying Pinnacle its fees while stopping its payments to Mesaba. Forcing it into bankruptcy. In that bankruptcy NWA swooped in and bought mesaba. How much did they buy mesaba for? I cannot remember but I know they got a good deal.

NWA purchased Mesaba for $145 million in 2007. Delta then sold Mesaba to Pinnacle for $62 million in 2010. IMO....Not a very good investment on their part.

 

[Raoul Duke]

This objection was filed by shareholders. They will get blown out regardless of who gets the DIP financing. Since Delta is the largest creditor and has the ability to enforce its default rights (PNCL was in default of the DCAs prior to filing) they get to call all the shots. Expect this to get approved by the court without issue.

 

[Simon Says]

Granted but, correct me if I am wrong, but Mesaba was owned by NWA/Delta at the time and NWA/Delta assets could be used to guarantee the loan. Pinnacle is a different ballgame because it is an independent entity.

We'll see what happens here. Hopefully for my former coworkers and everyone involved the company will be able to get the Delta loan plan approved.

At the time of Mesaba's bankruptcy Mesaba was not owned by Northwest. We emerged out of bankruptcy with Northwest buying us.

 

[Simon Says]

"Simon" Says the guy who already jumped across the fence with a full training cycle?

True that I jumped the fence, but doesn't change the fact that the company is losing with how and when I jumped.

But I still believe in senority and wouldn't change my stance on senority. The union will probably be forced by the courts to negotiate a different deal. Just my oppinion...doesn't make it right or wrong.

 

[Flyer1015]

But I still believe in senority and wouldn't change my stance on senority. The union will probably be forced by the courts to negotiate a different deal. Just my oppinion...doesn't make it right or wrong.

You lucked out. Ask your 2000-2001 DOH colleagues what they think of "seniority" when they are below 2006 DOH 9E and 2007 DOH 9L pilots.

 

[fam62c]

The whole US bankruptcy system is insane. It allows weaker companies to reorganize and then come back and compete (with a court imposed lower cost structure) with stronger companies causing more bankruptcies. It rewards the weak and punishes the strong resulting in weaker industries. If bankrupt carriers were forced to liquidate this industry would be a lot stronger. We need some corporate darwinism to strengthen the gene pool. Bankruptcy, at least in this industry, is just another form of regulation. In this case it regulates industry labor cost structure.

 

[twott driver]

That's pretty much the gist of it. And management use it to it's fullest advantage. I wouldn't be surprised if all airline managers got together once every couple of years at a Vegas strip-club to decide who's turn it was next.

 

[www.]

Probably because Menke is not stupid and knows something about bankruptcy law. Look up Sub Rosa bankruptcy. Its clearly established in bankruptcy case law that a creditor cannot improve its position by providing DIP financing. Don't be surprised if this motion is granted and the DIP goes away. If that happens it looks like Chapter 7 will be the only option.

And whom do you think will be there to pick up the large 70 seat + airframes? Yep. JA.

 

[xjhawk]

JA? Bosnia Air? Thats what the search turned up. lol Yeah I tend to think in the short term a out of seniority order furlough would benefit most but in the end no one SHOULD EVER want to have that happen. The future we would have to live with would suck. Imagine anytime an aircraft is parked, and you are on that aircraft, you would lost your job. ALPA would do the right thing and defend the ALPA seniority list with its full team of attorneys. But then again....who knows the future.

 

[i fly boxes]

Anyone else hear the rumors that colgan may be sold to another carrier very soon?

 

[A-10_JetMech]

Anyone else hear the rumors that colgan may be sold to another carrier very soon?

Who would want that mess?

 

[xjhawk]

I think if it was sold and it saved jobs, bases, pay and the pilots QOL then great. Not to mention how that would be for the company to save the money. But it raises some questions....

If someone were to buy the Q operation and make it profitable then why would that not have worked for the Management of Pinnacle? If this scenario is what happens then we know there is another influence cutting that part of the business out of the picture.

Where are these rumors coming from? Who would buy colgan in the state it is in now?

 

[suupah]

It wouldn't work for pinnacle because Delta won't allow it. I hope private investors buy Colgan and take pilots with the aircraft. It would practically be a turn key profitable business.

 

[Simon Says]

You lucked out. Ask your 2000-2001 DOH colleagues what they think of "seniority" when they are below 2006 DOH 9E and 2007 DOH 9L pilots.

Yes, I lucked out...this time. That sucks when people get stepped on this industry. I have taken my licks many, many, many times. Lets see, 2001, 02 (closing RHI) 02 (displaced to MEM) 02 (having to commute on reserve) 03 (downgraded and lost financing on a new home loan) 03 (lost my seat in the Avro) 04, 05, 06, 07...and the list goes on and freaking on.

Don't hold it against me that I came out even on the merger and jumped the fence early. Life is good for me primarally because I have a positive attitude and optimistic outlook.

Yes I support senority and Yes I think it sucks what happened to the middle of the pack on the senority...But did you hear me, or any XJ 900 CPT complain that we were the only group that did not get a raise in the new contract? The aurgument of "You have it better than me" is not an aurgument you should fight. I do not apologize that I have it better than you now nor would I ever apologize. But, I do sympathize for people that got "per se screwed" in the SLI.