Pinnacle Buying Colgan

[Lear70]

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."

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.

 

[Looking]

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.

 

[Flyer1015]

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.

 

[dingo222]

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.

 

[suupah]

yes this could potentially suck for the pinnacle guys. horrible.

 

[Flyer1015]

It seems looking at it from the surface, that there is no reason to buy Colgan BUT to whipsaw the pilot groups.

 

[suupah]

that is what i am afraid of.

 

[greedypilot]

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:

 

[Fly4hire]

It seems looking at it from the surface, that there is no reason to buy Colgan BUT to whipsaw the pilot groups.

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]

 

[CrownandCoke]

goodbye to my job...