bomberbubba
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Memphis Business Journal - 5:33 PM CST Friday
Pinnacle: Northwest shopping for bidders on Airlink fleet
Northwest Airlines is shopping for the lowest bidder to operate a fleet of airplanes like the Northwest Airlink service operated by Pinnacle Airlines Corp.
In an 8-K report filed late Friday with the SEC, Pinnacle (NASDAQ: PNCL) reported that Northwest Airlines Inc. (PINK SHEETS: NWACQ) has sent a request for proposal to Pinnacle and other airlines asking for proposals to operate a number of 76-seat regional jets comparable to the number of aircraft currently comprising Pinnacle's fleet.
"It is unclear at this time what the intentions of Northwest might be as to the operation of its Airlink system, and as to Pinnacle in particular, in the context of its overall planning for emergence from bankruptcy," Pinnacle stated in the filing. "Pinnacle plans to seek more instructive communications with Northwest as to those plans."
Northwest filed for Chapter 11 bankruptcy in September.
Philip Reed, vice president of marketing for Pinnacle, said under bankrupty laws, Northwest "has the right to validate or invalidate all contracts and to go out and seek a lower bidder to decrease its cost structure."
Reed said the RFP sent out by Northwest is essentially a move "seeking competitive bids for our products."
Reed said Pinnacle is confident in its ability to effectively compete against other airlines.
"We know from our filings and the filings of other regional airliners that we not only offer some of the lowest costs, but also the highest level of quality in the regional airline industry," Reed said.
Pinnacle: Northwest shopping for bidders on Airlink fleet
Northwest Airlines is shopping for the lowest bidder to operate a fleet of airplanes like the Northwest Airlink service operated by Pinnacle Airlines Corp.
In an 8-K report filed late Friday with the SEC, Pinnacle (NASDAQ: PNCL) reported that Northwest Airlines Inc. (PINK SHEETS: NWACQ) has sent a request for proposal to Pinnacle and other airlines asking for proposals to operate a number of 76-seat regional jets comparable to the number of aircraft currently comprising Pinnacle's fleet.
"It is unclear at this time what the intentions of Northwest might be as to the operation of its Airlink system, and as to Pinnacle in particular, in the context of its overall planning for emergence from bankruptcy," Pinnacle stated in the filing. "Pinnacle plans to seek more instructive communications with Northwest as to those plans."
Northwest filed for Chapter 11 bankruptcy in September.
Philip Reed, vice president of marketing for Pinnacle, said under bankrupty laws, Northwest "has the right to validate or invalidate all contracts and to go out and seek a lower bidder to decrease its cost structure."
Reed said the RFP sent out by Northwest is essentially a move "seeking competitive bids for our products."
Reed said Pinnacle is confident in its ability to effectively compete against other airlines.
"We know from our filings and the filings of other regional airliners that we not only offer some of the lowest costs, but also the highest level of quality in the regional airline industry," Reed said.