RJDC Has a Friend in Pinnacle CEO

[123]

"Scope hurts both Regionals and Majors," Trenary said

Yea, scope would be a nice thing to get rid of and just have all the flying done by NWA pilots. That way, NWA would not have to guarantee profits for regional airlines by paying a fee for departure, providing all their assets, paying for fuel and landing fees. Just to name a few of the costs Pinnacle doesn't have to pay.

 

[Lear70]

Pinnacle pays for all landing fees.

Pinnacle pays for their own fuel, but at NWA's cost.

Pinnacle pays for all other assets than the aircraft itself.

NWA pays a flat fee for the aircraft's operation, regardless of how many seats are filled, but it's the job of NW and their reservations agents to fill those seats. That's how NW makes money off of the deal. It's up to Pinnacle to make money on the fee per departure that NW pays.

Everything else you said about scope is basically true. We'd like nothing more than for NW to operate all their own RJ flying - would mean that we'd all get to a mainline job that much sooner...

 

[T-Gates]

It's funny that he hasn't been to a single pilot meeting since then...

Would be fun to sick the Burke brothers on him again... maybe I could be there to enjoy the festivities this time - missed it the first time.

That meeting made 2003 worthwhile for me! Nothing beats a overpaid CEO eating some crow infront of 30 blood thirsty DTW pilots....

 

[123]

Pinnacle pays for all landing fees.

Pinnacle pays for their own fuel, but at NWA's cost.

Pinnacle pays for all other assets than the aircraft itself.

NWA pays a flat fee for the aircraft's operation, regardless of how many seats are filled, but it's the job of NW and their reservations agents to fill those seats. That's how NW makes money off of the deal. It's up to Pinnacle to make money on the fee per departure that NW pays.

Pinnacle may pay for their own fuel and landing fees, but, I would venture to say they get reimbursed for that cost. Yes, they probably do provide some of their assets (ie. tugs, office space, computers, etc). From the NWA 10K "The regional carriers are paid based on operations for certain expenses and receive reimbursement for other expenses."

You are correct in the fact that it is up to Pinnacle to make money on the fee per departure that NW pays. Out of curiosity, what would you guess the annual expenses were for the airline last year (minus aircraft leases)? I can't find it since it just recently went public.