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Pinnacle Buying Colgan

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http://phx.corporate-ir.net/phoenix.zhtml?c=131072&p=irol-newsArticle&t=Regular&id=951595&

Mr. Trenary continued, "The purchase of Colgan Air gives our corporation access to and relationships with three of the largest carriers in the United States: Continental Airlines, United Airlines and US Airways. When combined with Pinnacle Airlines, Inc.'s airline services agreement with Northwest Airlines, Pinnacle Airlines Corp. now code-shares with a significant proportion of the major airlines in the United States. These new relationships will be invaluable to helping grow both Pinnacle Airlines, Inc. and Colgan Air."
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I still don't know WTF the big picture is here. Uncle Phil's crazy if he thinks this gets around Scope in any way, however...

Betcha that's what he's going to TRY.

"What an a*shole..." Airplane, the movie.

edit: PNCL stock price is fairly unaffected, up only $0.50 cents in the last hour of trading since the announcement. My guess is the investors don't see this as a huge benefit or hindrance to the company's earnings which sounds about right.
 
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Pinnacle Airlines, Inc. and Colgan Air will operate as two separate entities with independent and separate management structures. Pinnacle Airlines Corp. and Pinnacle Airlines, Inc. will remain at the current headquarters in Memphis, TN. Colgan Air will maintain its operational headquarters in Manassas, VA, provided it continues to make operational and financial sense for the organization.
 
So will this be like "Skywest Inc" that owns Skywest Airlines, but then also bought Atlantic Southeast Airlines.

Skywest Inc said that Skywest Airlines and ASA "will operate as two separate entities with independent and separate management structures."



But yet, there was still some transfer of CR7s from ASA to Skywest.





What's to stop "Pinnacle Corporation" from transferring CRJs from Pinnacle Airlines to Colgan Air, under the threat of signing a crappy CBA?



I hope everything works out for all employee groups involved.
 
yeah, this could whipsaw the pcl pilots real bad. You guys are overdue. I hope this doesnt screw the pooch on the new contract. God only knows what will happen to the colganites, cause we are outstation based and non union.
 
Hopefully my training contract is thrown out the window and I'll get to leave early.. I hope we go down the $hiter.. really I do.. couldn't happen to a nicer family :blush:
 
Flyer1015 said:
It seems looking at it from the surface, that there is no reason to buy Colgan BUT to whipsaw the pilot groups. :(
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Actually no. The Air Services Agreement recently modified with NWA allows PCL to fly for other carriers, however this is retricted by the NWA pilots contract to only be with aircraft not purchased or leased by NWA.

The only way they can fly for anyone else is to buy aircraft themselves, or buy someone who has thier own aircraft which it appears they have done.

From the NWA CBA:

1.B.7.c.(5)

Except as to aircraft operated by a Feeder Carrier operating pursuant to the provisions of Section 1 B.7.c.(7)(d), any jet aircraft and AVRO-85 aircraft operated by a Feeder Carrier (i) which are owned or leased by the Company or in which the Company has a financial interest, and (ii) which are operated by Mesaba Airlines, Pinnacle Airlines, or any air carrier in which the Company or an affiliate has an ownership interest, must be operated at all times with the Northwest code designator (NW). If the Northwest code designator is removed from said aircraft, that aircraft shall no longer be operated by the carrier.[FONT=Times New Roman,Times New Roman]
[/FONT]
 
Amazes me Pinnacle Corp. management has the will and the money of $20 million to buy out Colgan, and yet, they are extremely unwilling to negotiate with Pinnacle pilots to reach a fair deal that recognizes the pilot group.

Those of you at PNCL 'in the know' -----> the current Pinnacle ALPA proposal.... would it have cost the company an additional 20 million if signed?

More than 20 million? Less than 20 million?
 
Flyer1015 said:
Those of you at PNCL 'in the know' -----> the current Pinnacle ALPA proposal.... would it have cost the company an additional 20 million if signed?

More than 20 million? Less than 20 million?
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Our current proposal is $50 million more than the company's current proposal (which is basically current book with less scope).
 
I think this will not affect a lot....Colgan will fly TP's and Pinnacle will operate RJ's.....

Don't forget Pinnacle is owned by Pinnacle Airlines Group...now Colgan is owned by them...Like GE owns Engines and NBC...they have nothing to do with each other....just a corporate umbrella....this stuff happens in all kinds of industries...not just airlines....5 hospitals where I live are owned by the same umbrella and they are all seperate entities.

Can the umbrella company put presure on the two subsidiaries to compete with each other...sur but no more than comparing each pilot group to another.

I do not see Colganites "Stealing" Pinnacle flying or vice versa...just a corporate move. The two airlines will stay seperate.....of course there is always a potential for bad stuff...but I think you will see them seperate.

I could see ALPA trying to jump all over this nd scare Colganites into believing that they need them or something......

Whatever....alls we can do is wait and see...as pilots we have no control.

my .02
 
one time a hired a monkey to take for me in class. I would just sit there with my mind a complete blank while the monkey scribbled on little pieces of paper. At the end of the week, teacher says "class, I want you to write a paper using your notes". So I wrote a paper saying "hello! My name is Bingo. I like to climb on things. Can I have a banana? eek eek." I got an F. When I told my mom about it, she said "I told you never trust a monkey!". The end.
 
Sticky said:
one time a hired a monkey to take for me in class. I would just sit there with my mind a complete blank while the monkey scribbled on little pieces of paper. At the end of the week, teacher says "class, I want you to write a paper using your notes". So I wrote a paper saying "hello! My name is Bingo. I like to climb on things. Can I have a banana? eek eek." I got an F. When I told my mom about it, she said "I told you never trust a monkey!". The end.
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I almost feel stupid for responding to this....:erm:

Is that your metaphor for ALPA?
 
According to both Phil Tranery and Mike Colgan, Colgan will be used for turboprops and all new turboprops that could be won, while Pinnacle will remain the growth platform for new jet aircraft and larger jet aircraft which "he is confident we will aquire". IF and this is a huge IF, they stick to their word, this is a very smart business decision and both pilot groups would be ok.
If he is not a man of his word, which as we have seen in the past, than it could get ugly. Basically Colgan could become a negotiating tool against the pinnacle pilots. It doesn't matter though becuase of our attrition, we will all still upgrade within 3 years.

I don't see phil taking away planes from pinnacle after hearing this webcast. I do see him growing colgan, but not at pinnacle's demise. He built this airline from the ground up and he is not going to destroy it.

Look for Colgan to fly the Q400 by the end of the year.
 
LanceAir said:
I almost feel stupid for responding to this....:erm:

Is that your metaphor for ALPA?
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You're not alone.

I feel stupid for reading the whole thing expecting there to be a point.

Fly4Hire I have a scenario for you to consider,,,

and it's ugly:

The section you quoted is absolutely correct, but look VERY closely at the EXACT wording of the language. It doesn't say Pinnacle Airlines Inc, or Pinnacle Airlines Corp, just "Pinnacle Airlines" which, in legalese, could be construed to mean THE HOLDING COMPANY.

So what's to keep Pinnacle Airlines CORP (the holding company) from shuffling some of them over to Colgan? They'd still be operated by Pinnacle Airlines (the holding company), still be painted the same colors, still fly on Northwest routes, just with different pilots.

I bet you a C-note that Northwest wouldn't care, as long as they weren't operating for any other carrier's codeshare and, in this scenario, they wouldn't.

The ONLY thing that stops it is the Scope language in the Pinnacle contract and, again you have a legalese issue: what EXACTLY does "Operated by Pinnacle Airlines" mean? Is it the airline, or the holding company that is referenced in the contract?

Could an effective argument be made by the company that the contract was written between ALPA and Pinnacle Airlines, INC (the operating company) and, since the aircraft NEVER WERE leased to anyone EXCEPT the HOLDING company and now they're operated under a completely separate Certificate, operating offices, dispatch, mx, etc, it's not the same airline that ALPA signed with?

That's what I'm talking about when I say that I think this is what PT is going to try... and he might very well be successful. If so, times are about to get VERY tough at PCL and the Colgan pilots who are hired to fly these aircraft when they're transferred over will become the target of a VERY pissed off group of PCL pilots.

Welcome to the whipsaw.
 
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LOL! Just a joke for those who may remember Space Ghost Coast to Coast. My avatar is Brak from cartoon planet. He usually just had stupid things to say during times of conflict.
 
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Does this start the wave of consolidation? Will this cause Delta to accept USAir's bid? I guess only the future will tell.
 
bizicmo said:
Does this start the wave of consolidation? Will this cause Delta to accept USAir's bid? I guess only the future will tell.
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Oh yes, the ripple effect can be felt throughout the industry. Can you feel it? Oh wait, that was just the crumbs from my sandwich falling on the floor.
 
PCL_128 said:
Our current proposal is $50 million more than the company's current proposal (which is basically current book with less scope).
Click to expand...


Talked to Tom P yesterday, before all this. I get the feeling that the union proposal will be costing MORE than 50 mil now......
 

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