http://online.barrons.com/article/SB119005457787130055.html
SHARES OF REGIONAL CARRIER Pinnacle Airlines (ticker: PNCL) got a slight lift Monday following a positive article in Barron's.
On a down day for the broader market, the Memphis-based company was up 0.8% in mid-day trading.
In her article entitled "Little Giant," Barron's Asia editor Leslie P. Norton wrote that bulls believe Pinnacle is worth at least $19, a 25% upside from Friday's closing price of $15.23.
"You see, this is how I make the real money" said Pinnacle Airlines Chief Executive Officer Philip Trenary, aka, the "Phildo."
"I have thousands of stock options which I excercise almost on a monthly basis."
"However," added Phildo, "You really can't look at my stock options, since it doesn't give an accurate overall picture of my salary. My base salary, compared to regional airline CEOs, is rather low."
"The real problem are the pilots," continued Mr. Phildo. "They still haven't accepted the final and best offer that I put on the table for them."
"The answer is quite simple," said Phildo. "They're overpaid. I told them over and over that we would lose all the Northwest flying, unless they agreed to my perfect contract with absolutely NO scope clause loopholes."
"I tried to do what's best for the pilots," continued Phildo. "I even sent Fedex packages to the pilots' families, highlighting how the pilots were about to bring down Pinnacle by NOT signing my perfect contract offer. I figured if I got enough of the pilots' significant others upset, the pilots might cave in and sign my offer."
When asked to comment on how Northwest gave Pinnacle a new ASA even with no new pilot contract signed, Phildo responded, "What can I say? I'm simply the best!"
When asked how would he respond to the allegation that Pinnacle pilots, especially the First Officers, were already the lowest paid CRJ pilots in the industry, Phildo simply picked his nose and said, "What was that question again?"
Upon repeating the same question, Phildo claimed his voice conference earpiece had died on him, and hence could not hear the question.
Norton said that Pinnacle is poised to benefit from a recent cash infusion stemming from its bankruptcy claim against partner Northwest Airlines. The $200 million after-tax settlement allowed the airliner to buy 31 more aircraft and -- helped by an underleveraged balance sheet -- bolstered the company's ability to continue recent stock buybacks.
"Sure I could have settled with ALPA and agreed to fair labor contract," said Phildo. "However, I have my obligations to satisfy stock owners and my corporate executives in order to line up our own pockets and golden parachute." "It's all part of being 'Simply the Best.'"
Also, under a renegotiated 10-year contract with Northwest, Pinnacle gained the right to partner with additional carriers and the company will soon be providing regional routes for Continental Airlines and Delta Air Lines.
"I am excited," said a happy Phildo.
The new partnerships could add 40 cents a share to earnings in 2009, Norton wrote.
"This just reaffirms my commitment to stockholders and executives that I will deliver to, at the expense of (and on the backs of) the employees," said Phildo.
[End]
SHARES OF REGIONAL CARRIER Pinnacle Airlines (ticker: PNCL) got a slight lift Monday following a positive article in Barron's.
On a down day for the broader market, the Memphis-based company was up 0.8% in mid-day trading.
In her article entitled "Little Giant," Barron's Asia editor Leslie P. Norton wrote that bulls believe Pinnacle is worth at least $19, a 25% upside from Friday's closing price of $15.23.
"You see, this is how I make the real money" said Pinnacle Airlines Chief Executive Officer Philip Trenary, aka, the "Phildo."
"I have thousands of stock options which I excercise almost on a monthly basis."
"However," added Phildo, "You really can't look at my stock options, since it doesn't give an accurate overall picture of my salary. My base salary, compared to regional airline CEOs, is rather low."
"The real problem are the pilots," continued Mr. Phildo. "They still haven't accepted the final and best offer that I put on the table for them."
"The answer is quite simple," said Phildo. "They're overpaid. I told them over and over that we would lose all the Northwest flying, unless they agreed to my perfect contract with absolutely NO scope clause loopholes."
"I tried to do what's best for the pilots," continued Phildo. "I even sent Fedex packages to the pilots' families, highlighting how the pilots were about to bring down Pinnacle by NOT signing my perfect contract offer. I figured if I got enough of the pilots' significant others upset, the pilots might cave in and sign my offer."
When asked to comment on how Northwest gave Pinnacle a new ASA even with no new pilot contract signed, Phildo responded, "What can I say? I'm simply the best!"
When asked how would he respond to the allegation that Pinnacle pilots, especially the First Officers, were already the lowest paid CRJ pilots in the industry, Phildo simply picked his nose and said, "What was that question again?"
Upon repeating the same question, Phildo claimed his voice conference earpiece had died on him, and hence could not hear the question.
Norton said that Pinnacle is poised to benefit from a recent cash infusion stemming from its bankruptcy claim against partner Northwest Airlines. The $200 million after-tax settlement allowed the airliner to buy 31 more aircraft and -- helped by an underleveraged balance sheet -- bolstered the company's ability to continue recent stock buybacks.
"Sure I could have settled with ALPA and agreed to fair labor contract," said Phildo. "However, I have my obligations to satisfy stock owners and my corporate executives in order to line up our own pockets and golden parachute." "It's all part of being 'Simply the Best.'"
Also, under a renegotiated 10-year contract with Northwest, Pinnacle gained the right to partner with additional carriers and the company will soon be providing regional routes for Continental Airlines and Delta Air Lines.
"I am excited," said a happy Phildo.
The new partnerships could add 40 cents a share to earnings in 2009, Norton wrote.
"This just reaffirms my commitment to stockholders and executives that I will deliver to, at the expense of (and on the backs of) the employees," said Phildo.
[End]
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