Pinnacle Files for Bankruptcy

[Whataboutbob]

Not yet. Several items menke mentioned were very important - and overlooked by most pilots-

-Delta was the only entity that would provide DIP financing
-Delta swapped 43 mil of secured debt from the mesaba transaction for DIP debt. Why? Delta is listed as a creditor that has supplied 73 mil in DIP financing but it only resulted in 30 mil net cash to PCL.
-Menke stated the price for that was all the Delta contracts are now 'in play'. Translated that means that not only is the contract for the 16 PCL owned 900's gone but in addition the contracts for the remaining 42 900's and the all the 200's have been modified
-Menke stated those contracts may be extended to 2022 provided certian cost reductions are met

Anyone care to guess what those cost reductions are? Anyone that has been around long enough to be familiar with R Anderson and his whipsaw tactics knows what is coming next.

The 74 airplanes announced so far are just the start of this. Unless the remainder of the PCL pilots are willing to agree to big consessions you will see even more AC leave your property.

Someone predicted that in a year PCL will be the size of CMR. I think he's wrong - by a year. It will take two years.

It is part of Delta's strategy to keep all regional pilots at year one pay.

I would agree with you. Anyone that thinks the CRJ200 will scave through this bankruptcy untouched is out to lunch. It might not be as big of # as the 76 announced so far but it could also be more. Time will tell.

There will be a huge whipsaw game played out in this bankruptcy. Has United even officially announced they are cutting ties with Pinnacle?? All the press release stuff I've seen is coming from Pinnacle's end saying its over and winding down. Menke will come to labor and say if we can get to this price point, United will let us keep flying the Q400 for them and as a bonus Delta will let us keep the CRJ900. But unfortunately they want 100 CRJ200's parked. I'm not smart enough to figure out the end game. Who knows. But if Menke wanted 5% from the pilots before bankruptcy I would guess they are now going to ask for 10% in hopes of getting the 5%??

 

[bri5150]

A la Mesaba bankruptcy, fight in court to allow 10% and when judge allows that negotiate for 5% so we can vote between the lesser of 2 evils.

 

[sinkrate]

A la Mesaba bankruptcy, fight in court to allow 10% and when judge allows that negotiate for 5% so we can vote between the lesser of 2 evils.

This time I don't think Delta will be interested in saving the day and buying us for an IPO/spin off. My guess is there will be a much bigger emphasis on paycuts this time around.

 

[Kaman]

The rapid unionization of Colgan, JCBA, Integrated seniority list and compressed realignment were all done in short-order. And while I appreciate their zeal and motivation. Our equally niave and inexperirnced ALPA representatives were drawn down the current road to ruin by a very shrewd Delta board of directors. This has been in the works for a long time, and wouldn't be surprised if PNCL Corp. didn"t cook the books in order to get it past our astute ALPA financial experts. Careful what you as ask for...we got it alright plus interest...

 

[bri5150]

Those "niave and inexperienced" ALPA representatives you talk about got me $13k in my 401k and snapback wages during the last bankruptcy. And that $13k was on the very low end of what most Mesaba pilots got at the time. Many guys actually came out ahead wagewise from the last bankruptcy.

 

[CRJ puppy]

also general, you are wrong, pinnacle owns those 16 900's. for now anyways

Actually, they are "owned" by the lessor.

 

[JustaNumber]

Awww- the pilot solidarity myth angle... a classic opening, but futile. There is no such thing as pilot solidarity.

Agreed. Therefore, mainline jobs will continue to disappear, as the regionals get cheaper and cheaper and cheaper...

 

[IbeFlyenhye]

Here is another good article. Not entirely accurate, but good.

http://crankyflier.com/2012/04/03/pinnacle-files-for-bankruptcy-protection-you-shouldnt-care/

 

[Whataboutbob]

Those "niave and inexperienced" ALPA representatives you talk about got me $13k in my 401k and snapback wages during the last bankruptcy. And that $13k was on the very low end of what most Mesaba pilots got at the time. Many guys actually came out ahead wagewise from the last bankruptcy.

During the Mesaba bankruptcy in 05' most of the low cost carriers and most of the regionals were hiring. The only regional airline furloughing was Mesaba. So you had most guys who wanted out had the opportunity to leave at all levels "Captains going to Southwest, Airtran..." "F.O's going to Skywest..... Thats one thing that will be different this time. You won't have as many Captains leaving from the top of the list as you probably did back in 2005'. I think those First Officers that want to gamble on a latter move will have the opportunity to take a job at another regional while Pinnacle goes through bankruptcy. My memory of some of the biggest winners in that bankruptcy were Captains waiting for class dates for Southwest that got $20-25k deposited into their 401ks right before leaving to greener pastures. Hopefully once management gets what they want ALPA will make sure the pilots leave bankruptcy with some kickers for our contributions.

I agree with you bri5150 that our ALPA reps did a great job in the last bankruptcy. This may be Sean Menke's second airline bankruptcy as CEO but guess what, its not Tom Wychor's first rodeo either. I'm glad he is at the helm of our local ALPA branch for this bankruptcy. Seans got some tuff competition

 

[bri5150]

Yup. This one is different in a lot of ways. I am just sick of peoe spouting off about things they have no idea what they are talking about. Calling our current union reps naive and inexperienced is just a joke.