Should Expressjet buy Pinnicle?

[rumorhasit]

Rumor has it Expressjet (continental Express) is trying to purchase Pinnacle(not sure about spelling)...any thoughts?

 

[POKEY]

I think they are going to wait and see what happens with ACA and MESA. If they get together, then it will probably go forward.

 

[Heavy Set]

All public businesses want to diversify their risks - so, it would make sense to work with more than just one airline (ala MESA) in case Continental has problems... Don't want to put all of your eggs in one basket. So, I can see the "strategic" case for a merger. No doubt the labor situation would be a mess.

 

[DoinTime]

Rumor has it Expressjet (continental Express) is trying to purchase Pinnacle(not sure about spelling)...any thoughts?

Its not a rumor.

 

[Bjet Driver]

No doubt the labor situation would be a mess.

Why? I don't think there are enough pilots at Pinnacle to make the merger "a mess". Integrate according to DOH. I would gladly give up seniority to put more folks below me. I know that those of us at XJT are already used to no movement (if not negative movement).

I see the real problem being the overall cost effectiveness (for XJT) of purchasing a company that doesn't operate ERJ's. The single fleet type is what let SkyWest in the door in IAH. I can't imagine XJT management wanting to mess with CRJ's and Saabs if they wouldn't even get their old E120's out of the closet.

What do I know, I'm just a pilot..........

 

[tittyjet]

News Flash.....

Pinnacle no longer operates Saabs.

 

[Bjet Driver]

Pinnacle no longer operates Saabs.

Why do you think I added the "What do I know, I'm just a pilot" part..............

 

[FSB99]

don't think we'd have to worry about the crj's, if/when the deal goes through.. they'd get the larger jets we supposedly will "never" see at xjet.
we've got to insist on integration, like you said above, even if it does mean i lose seniority (again..), no matter what the corporate structure looks like.

 

[Lear70]

I'm just curious why anyone thinks they would integrate the two companies? They're talking acquisition - not merger.

From purely a business standpoint, it would make no sense to integrate the two. Keep them two independent companies operated independently. No worries of pilot contracts, operating bases, equipment issues, etc.

Just something to consider. Incidentally, our management keeps insisting that there's nothing to the rumor, but inside sources keep talking of a LOT of management movement between Memphis and Houston, strange faces wandering around operations areas, and more, for whatever that's worth.

 

[FSB99]

you're absolutely right, that's what we're hearing, too, it would be an acquisition, not a merger. my point is, though, if we could somehow force integration of the seniority lists, that would help prevent the whipsawing opportunities newly available.

 

[T-Gates]

you're absolutely right, that's what we're hearing, too, it would be an acquisition, not a merger. my point is, though, if we could somehow force integration of the seniority lists, that would help prevent the whipsawing opportunities newly available.

Exactly....I'm all for integration. I am junior to EVERY CoEx pilot, but the benefit of merging the two lists to eliminate the whipsaw far outweighs the loss of seniority.

We shall see....

 

[Lear70]

Oh I'm down wit dat, no doubts 'bout it bros! It would be fantastic if we could get your contract bennies, even if we took a hit on seniority, although I think T-Gates and I would represent a minority vote here...

 

[Longhorn]

Lear70,
Whats up R...
I think you will find more of us that are for it if it is done correctly than you might think. I too thought that my thoughts would be the minority but the more I ask people at work the more I am suprised that people would be for it if it was done the right way....

Later Man,

BTS

ps..countdown to deportation..3 days...you know what I mean..sigh

 

[Lear70]

I guess I'm just thinking of all the VERY senior guys who don't know how they'd fair over there. Pilots in general don't like change, and especially when they're comfy with what they're doing and where they're at, which is why I think they'd probably resist. Add into that the fact that those senior guys control the MEC, and you see what I mean...

I still can't believe you can't get any relief from the Immigration people on that! If there's any grenade I can jump on for ya', let me know... how do you think I got THIS job? We really DO need to go down for Carnival...

 

[727RedTails]

It aint going to happen, the financial firm advising NWA just suggested it since they cant get much for Pinnacle on the open market. Expressjet offered a lowball amount of stock, but it didn't matter NWA wouldn't want to give up control anyway. But feel free to debate the seniority thing.

 

[Flyingtoohigh]

I'm not quite as up on my Railway Labor Act knowledge as I could be. Under RLA, if Expressjet buys Pinnacle, they can run them as two separate airlines, but the same union (ALPA) can reside with both.

Would ALPA support two separate contracts and two pay scales, etc?

I'm still learning, so any corrections and comments are appreciated.

 

[MJG]

Moot Point Now

Reuters
Northwest's Pinnacle Air IPO set at 19.4 mln shrs
Friday November 7, 6:26 pm ET


WASHINGTON, Nov 7 (Reuters) - An initial public offering by Northwest Airlines Corp.'s (NasdaqNM:NWAC - News) regional carrier Pinnacle Airlines Corp. was set at 19.4 million common shares, a regulatory filing on Friday said.



The shares will sell for $15 to $17 each, which could raise $291 million to $329.8 million.

All of the shares are being offered by the Northwest Airlines Pension Plans, meaning Pinnacle won't get any of the proceeds from the IPO.

The shares and price range were disclosed for the first time in a filing with the Securities and Exchange Commission (News - Websites) .

The initial public stock sale is being handled by Morgan Stanley, Citigroup, Credit Suisse First Boston, Deutsche Bank Securities, J.P. Morgan and Blaylock & Partners.

The underwriters have an option to buy 2.5 million shares to cover any over-allotments.

Once the IPO is completed, the pension plans will not own any common shares of Pinnacle, according to the filing.

If the over-allotment option granted to the underwriters is not exercised, Northwest will own 11.4 percent, or 2.5 million shares, but if the over-allotment option is fully exercised, Northwest will not own any common shares.

Northwest will continue to own one share of its Series A preferred stock, the filing said.

Northwest shares dropped 3 cents, or 0.22 percent, to close at $13.47 on Nasdaq.

Pinnacle Airlines, formerly known as Express Airlines I, was acquired by Northwest on April 1, 1997 for about $33 million.

The Memphis, Tennessee-based carrier will have 21.9 million shares outstanding and has applied for a Nasdaq listing under the symbol "PNCL" (NasdaqNCL - News). It was not immediately known when the stock will be traded.

So much for this rumor.

 

[Bjet Driver]

Ahhh. Quick and painless, just the way we like it.




Next.

 

[DTWFO]

I'm also a junior FO, but I'm all for integration. Anything to get rid of those retards on Nonconnah!!