Pinnacle Files for Bankruptcy

[Mesabi Miner]

Mechanics report that "lots of engine changes" on the Q400s are being performed. And we all know why "lots of engine changes" occur.

MM

 

[25or6to4]

the Q returns really caught me off guard. I was expecting a SAAB wind down. but not this.
I heard they're starting a new Macon-Albany-Toronto service.

 

[i fly boxes]

can someone explain the engine change thing to me? I mean the plane comes with engines when you buy it, so unless they fail or time out why would they change them. Our Q's are pretty new. How long is the engine life on a Q 400?
Im ignorant about all this

Also about the q lease returns - We were leasing one or two while the planes were going through modifications for first class. Now that that is on hold is this just returning those planes? Also we had sold 2 q's and leased them back, could those be the ones as well? Im throwing out suggestions before everyone thinks they are all getting parked.

 

[Indy319FA]

can someone explain the engine change thing to me? I mean the plane comes with engines when you buy it, so unless they fail or time out why would they change them. Our Q's are pretty new. How long is the engine life on a Q 400?
Im ignorant about all this

Also about the q lease returns - We were leasing one or two while the planes were going through modifications for first class. Now that that is on hold is this just returning those planes? Also we had sold 2 q's and leased them back, could those be the ones as well? Im throwing out suggestions before everyone thinks they are all getting parked.

Engines get changed and swapped out. Usually when leases are cancelled in bankruptcy the aircraft will go to company maintenance and all the MELs are fixed and depending on the lessors demands the original engines will be placed back on the aircraft. Most will want the original engines. In a CH 11 all of this is usually done by company maintenance then the aircraft is flown back to the lessor or to storage. If the company shuts down in bankruptcy then the aircraft are usually flown to a contract maintenance facility to have this work performed.

 

[bri5150]

Engines get changed and swapped out. Usually when leases are cancelled in bankruptcy the aircraft will go to company maintenance and all the MELs are fixed and depending on the lessors demands the original engines will be placed back on the aircraft. Most will want the original engines. In a CH 11 all of this is usually done by company maintenance then the aircraft is flown back to the lessor or to storage. If the company shuts down in bankruptcy then the aircraft are usually flown to a contract maintenance facility to have this work performed.

Bankruptcy has nothing to do with it. The planes need to returned with original engines. All the Mesaba Saabs went through the same thing and we weren't in bankruptcy.

 

[Indy319FA]

Bankruptcy has nothing to do with it. The planes need to returned with original engines. All the Mesaba Saabs went through the same thing and we weren't in bankruptcy.

Never said lease returns only occur in bankruptcy. What I said was lessors generally want original engines on the aircraft and this is usually done by the company before aircraft are returned depending on the conditions of the bankrutpcy. In the Fly I debacle, most were returned with original engines but a few were not and some had to be performed by outside MX when the company shut down. All depends on the conditions of the company.

 

[WMUSIGPI]

Yup same thing happened when the Avros got parked several years ago. That was a LOT of engine swapping.

 

[suupah]

Pncl ch 11

http://finance.yahoo.com/news/pinnacle-airlines-files-chapter-11-030000890.html

 

[SiuDude]

And not an April fool's joke either.

 

[On Your Six]

From the above article:

The remaining Saab 340 fleet that Colgan operates for United Express will be wound down over the next several months, with these operations projected to end by Aug. 1, 2012. Similarly, Colgan's Q400 aircraft operations will be wound down by Nov. 30, 2012.


That's not good. Delta did give $74 million for DIP financing, though. Although, according to the bottom article, this is what it will be used for:


In conjunction with the filing, Pinnacle has received a commitment for secured super-priority debtor-in-possession financing ("DIP Financing") from Delta Air Lines, Inc. in the amount of $74.3 million. Following Court approval, $44.3 million will be used by Pinnacle to repay a secured promissory note held by Delta. The remaining $30 million in DIP financing, combined with cash generated by Pinnacle's ongoing operations, will be available to help ensure that Pinnacle has sufficient liquidity to meet its operational and restructuring needs.



I don't get it. They get $74 million from Delta, and $44 million of that is used to repay a secured promissory note held by Delta?




Godspeed!


The OYSter