PinnaColaba expecting 2nd quarter loss due to pilots

[Indy319FA]

Hard to blame this on Menke when he walked into this mess created by previous management. We weren't even staffed appropriately for the old contract, let alone the new one. We were paying 200 percent for months before the new contract kicked in. All the new contract did was take a bad situation and make it worse. No surprises that the old CFO left either, and Menke has brought his own guy in. I think you will see more management changes before all this is said and done. This won't get fixed until we get to minimum staffing required for the new contract, which won't be until mid winter, at best.

 

[higney85]

Am I supposed to feel bad for working 200% like a.... well....

 

[Indy319FA]

Am I supposed to feel bad for working 200% like a.... well....

No but I think they have to give a reason for the loss to investors. If not for the employees at Pinnacle working together (particularly the pilots) this could have been much worse. It looks like the worst is behind us, but it will still take a few months before things get anywhere near normal...

 

[altimaklr]

The only thing we have going for us is everyone else is in the same boat or worse. Republic is losing the house on frontier, comair and eagle are money pits, TSA had to be paid to get rid of compass, Skywest has their hands full with xjet/asa ... The idea that regional airlines can sustain a profit over the long-term with the position they are in with mainline partners is deeply in question.

 

[727RedTails]

Just imagine if they had to pay market rates for fuel. The death of the CRJ is coming...

 

[jynxyjericho]

The only thing we have going for us is everyone else is in the same boat or worse. Republic is losing the house on frontier, comair and eagle are money pits, TSA had to be paid to get rid of compass, Skywest has their hands full with xjet/asa ... The idea that regional airlines can sustain a profit over the long-term with the position they are in with mainline partners is deeply in question.

Very well summarized.

 

[CptMurf]

The only thing we have going for us is everyone else is in the same boat or worse. Republic is losing the house on frontier, comair and eagle are money pits, TSA had to be paid to get rid of compass, Skywest has their hands full with xjet/asa ... The idea that regional airlines can sustain a profit over the long-term with the position they are in with mainline partners is deeply in question.

I would say a XJ has proved to be profitable and successful carrier over their 64 year run. The BK was forced upon them by NWA, and they have made a profit over and above their payment for PNCL Corp.

Corp is in shambles now because of the three FSDOs inflexibility, Corps resistance to merge into 1 airline, and the overinflated egos of middle managers that believe their airline had the superior SOP.

SM has inherited a mess.

 

[altimaklr]

Plenty of regionals have made money in the previous decade that will no longer be possible. Mainline will slash margins to the barebones while regional partners are hit with rising labor costs and fleet retirements. Companies with large cash balances (mostly skywest) may be able to gain business in the short-term since they can finance new aircraft more easily but eventually everyone will be hit with the reality that this is now a failed business model..

 

[bri5150]

Not to mention the Delta regionals that have to incur more cost because of their diversification and moving plans. Every regional having bases in every hub isn't efficient. Yes, I understand why they are doing it.

 

[WMUSIGPI]

Not to mention the Delta regionals that have to incur more cost because of their diversification and moving plans. Every regional having bases in every hub isn't efficient. Yes, I understand why they are doing it.

It's cheaper to bleed all thier partners to death rather than have a court agree to quickly chop the head off?

 

[e=mc2]

Reality break, if you can not charge a price for your product (in pinch's case a late, rude and often cancelled flight) which makes a profit - you should go out of business. If your services as a pilot will not be compensated at a liveable level take no reduction, allow the judge to put the place out of business. Nobody missed any of the long gone regionals GP Express, Corporate, etc, etc, and nobdy would miss pinnycolaba.

 

[bri5150]

Reality break, if you can not charge a price for your product (in pinch's case a late, rude and often cancelled flight) which makes a profit - you should go out of business. If your services as a pilot will not be compensated at a liveable level take no reduction, allow the judge to put the place out of business. Nobody missed any of the long gone regionals GP Express, Corporate, etc, etc, and nobdy would miss pinnycolaba.

The judge won't put the place out of business. He will just impose a lower rate a la Mesaba shamruptcy. Since 95% of the Captains probably won't start at another regional, it will be acceptable until they can get the heck out.

 

[sinkrate]

The 'regional' industry was born in the late 1980's out of very cheap fuel prices. Now that fuel is four times what it was then anything smaller than a hundred seats is going to have a very difficult time competing against the car. Short haul, small AC markets will shrink dramaticaly in the next few years, unless fuel gets cheap again. If Delta learns how to use RJ's on long, thin business markets - like NW did - a few more of them might survive. It is no accident that all sixty of the 50 seat routes Delta operates that are longer than 600 miles are operated by PCL. They are former NW routes.

 

[altimaklr]

The earnings are out... The loss is mostly due to one-time expenses of buying XJ, the new contract, JFK, and will be partially reimbursed by delta is 2012. $80m + unrestricted cash.

 

[jynxyjericho]

The earnings are out... The loss is mostly due to one-time expenses of buying XJ, the new contract, JFK, and will be partially reimbursed by delta is 2012. $80m + unrestricted cash.

Oil prices are tanking, should be cheap gas could be back soon .