Pinnacle now worried about Northwest---article

[flyf15]

If I worked for Pinnacle, I would be demanding to know from senior management over there what they plan on doing to ensure that Delta doesn't cancel their Northwest contract too once the merger is complete.

From what I've heard about Pinnacle, their management is totally incompetent and incapable of controlling their performance and if things work out good or bad for a given month is pure luck. Thats not how you run an airline, but it is how to make an airline go out of business. Its time for them to stop blaming their employees, weather, bad luck, etc and for them to realize they are the ones responsible for the airline and to take the blame.

You guys need new leadership. Competent leadership that can successfully run a business.

 

[Crash Pad]

Yeah "demand" that management learns to write a rock solid contract.

I asked a lawyer about this whole contract violation thing. They said... "make no mistake Delta has more money and better lawyers... they have a way to get out of all these contracts". None of us are safe. Hope for the best.

 

[airdog]

From Pininacle Web Site:

MEMPHIS, TN, May 08, 2008 (MARKET WIRE via COMTEX News Network) -- Pinnacle Airlines Corp. (NASDAQ: PNCL) ("the "Company") today reported first quarter 2008 net income and fully diluted earnings per share ("EPS") of $2.7 million and $0.15, respectively. The Company's net income and EPS were $9.4 million and $0.38, respectively, for the first quarter of 2007. They're making money!
The Company's financial performance for the quarter was negatively affected by two primary issues. First, Colgan Air, Inc. ("Colgan"), the Company's turboprop aircraft operating subsidiary, recorded an operating loss of approximately $5 million. The loss is almost entirely caused by recent significant increases in fuel costs affecting the entire airline industry. Colgan's average cost per gallon of fuel increased 54% as compared to the first quarter of 2007, adding approximately $3.9 million in fuel costs. Colgan's financial performance is also affected by seasonal changes in demand, with unit revenue typically weaker in the first quarter each year as compared to the second and third quarters.
Second, the operating performance of Pinnacle Airlines, Inc. ("Pinnacle"), the Company's regional jet operating subsidiary, was below incentive levels contained in Pinnacle's Airline Services Agreement ("ASA") with Northwest Airlines. Specifically, to obtain full payment for regional airline services provided under the ASA, Pinnacle is required to maintain certain levels of completed flights, on-time performance, mishandled baggage performance, and customer complaints over six month periods from January 1 to June 30 and July 1 to December 31 of each year. During the first quarter of 2008, Pinnacle's operating performance was affected by severe winter weather and by an increase in the number of operational maintenance events. As a result, Pinnacle's completion factor, on-time performance, and customer complaints fell below the incentive standards contained in the ASA. The Company recorded a $2.5 million performance-related reduction of revenue as an estimate of what it might owe to Northwest related to the first quarter of 2008. The ultimate amount that the Company will owe Northwest will not be determined until after the six month performance period ends on June 30, 2008. The Company has also estimated that Pinnacle's operating income was reduced by approximately $2 million because of lost revenue associated with cancelled flights and increased interrupted trip and passenger re-accommodation costs related to the higher level of cancelled and delayed flights. Pinnacle's operating performance is still well above minimum required standards in the ASA.
Pinnacle's operating performance has improved significantly during April 2008. Pinnacle may record a similar or smaller reduction of revenue during the second quarter of 2008, depending on Pinnacle's operating performance during the second quarter and the ultimate amount owed to Northwest for the six month performance period ending June 30, 2008. Whoops

 

[Smacktard]

If I worked for Pinnacle, I would be demanding to know from senior management over there...

I'm sure you'd show them!

 

[Smacktard]

Duplicate...

 

[Texx]

If I worked for Pinnacle, I would be demanding to know from senior management over there what they plan on doing to ensure that Delta doesn't cancel their Northwest contract too once the merger is complete.

From what I've heard about Pinnacle, their management is totally incompetent and incapable of controlling their performance and if things work out good or bad for a given month is pure luck. Thats not how you run an airline, but it is how to make an airline go out of business. Its time for them to stop blaming their employees, weather, bad luck, etc and for them to realize they are the ones responsible for the airline and to take the blame.

You guys need new leadership. Competent leadership that can successfully run a business.

That's a good one. You demanding from management.

 

[ohplease!]

I believe I remember the same issues with Pinnacle/NW from '07 &'06 as well....long history of ineptitude from Pinnacle....your days are numbered.

This is one of those RARE times I have to agree with GL. Once the merger is complete, Comair-Skywest-ASA-Shuttle-mesaba/compass look to be in pretty good shape. All others are in trouble.

 

[Draginass]

The real story is that the RJ is DEAD economically.

 

[~~~^~~~]

Which one?

Dragin - you can't be that simplistic. Just in the CRJ fleet one version has numbers that are 44% better than the other. Just as there is a difference between a DC9-30 and a MD90.

ALPA's been screwing up scope. Fuel prices will not buy back what mainline sold. Section 1 still matters.

 

[Superpilot92]

Which one?

Dragin - you can't be that simplistic. Just in the CRJ fleet one version has numbers that are 44% better than the other. Just as there is a difference between a DC9-30 and a MD90.

ALPA's been screwing up scope. Fuel prices will not buy back what mainline sold. Section 1 still matters.

I think it can be fair to say the CRJ100-200s. The 50 seater is on the way out the door. The only reason why the 50 seater is viable at XJT and CAL is because of the CAL scope language. CALs scope language is the best in the industry right now as far as legacy's go. No "jets" over 50 seats are allowed to be flown by anyone other than a CAL pilots. SCOPE is a huge issue and hopefully the joint contract will tighten the scope language at the new DAL. We'll see