Where Mesaba goes, Pinnacle Follows

[Detroitpilot22]

All interviews have been postponed "for a couple of weeks"
The downward spiral begins

 

[Workin'Stiff]

Not from what I've heard... We're still interviewing and hiring into the CRJ. Avro classes are on hold for a bit though...

 

[Detroitpilot22]

read the post, i was referring to pinnacle, not mesaba

 

[BoilerUP]

I got an email 2 days ago from Pinnacle inviting me for an interview this week or the next. Have not heard anything to the contrary yet...

 

[another cfii]

PCL is still hiring, according to mgmt today...

 

[Detroitpilot22]

i had a buddy that was supposed to have an interview tomorrow, and they called him and told him that interviews were postponed for 3 weeks. I hope he was wrong

 

[8HourPilot]

Recently got a call as well.......from 9E that is.

 

[SennaP1]

Recently got a call as well.......from 9E that is.

Congrats 8HP, how are things going?

 

[Redmeat]

http://www.thestreet.com/_googlen/markets/rosssnel/10243560.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA



"Because Pinnacle's only customer is Northwest, it warned in a regulatory filing Friday that the interruption in its cash flow will be material. Helane Becker, airline analyst at the Benchmark Co., a New York-based brokerage firm, expects Pinnacle shares to remain under pressure because of the company's now-murky outlook. Her firm does no investment banking."

 

[blesko]

just spoke to ms high in HR and they have suspended ALL interviews indefinately. I received the same e-mail just a few days ago, however, as of 10 mins ago, the interviews are suspended.

 

[Detroitpilot22]

did she give you a reason why?

 

[PeanuckleCRJ]

Man I was down at corporate today..they were interviewing. No word of this. Weird how even in the middle of everything word doesnt get out.

 

[cosmotheassman]

did she give you a reason why?

Northwest just filed bankruptcy and you want to know why hiring has been suspended at Pinnacle?

 

[Redmeat]

did she give you a reason why?

Northwest just filed bankruptcy and you want to know why hiring has been suspended at Pinnacle?

Look at his profile. Let's give Detroitpilot22 a break, as he knows not the ways of the world.

 

[8HourPilot]

Doin good man, you still out in LGA? I am enjoying ORD....till the snow falls.

 

[blesko]

did she give you a reason why?

no, nor did i ask, she seemed very shory, but yet still personable enough to take my call this afternoon. who knows.....time will tell i guess

 

[arthompson]

according to PT we are still hriing pilots. We want to keep bringing guys on line to cover our attrition.

 

[TinGoose1]

I'd be careful about going to Pinnacle for two reasons. First, they're scary. Second, without a good cash reserve the NWA filing is going to hit 9E extremely hard. If you add the contract situation as well, you can paint a pretty gloomy picture. I'd go somewhere else or stay where you are. Right now isn't the time to leave a job just to get furloughed.

 

[Workin'Stiff]

Does 9E have any money stashed away as compared to XJ with our ~120 mil???

 

[TinGoose1]

No. 9E has no real assets or cash savings. When they get pinched, everyone there is going to feel it.

 

[Workin'Stiff]

So with payments being delayed for the time being, this could put 9E in a very bad position...

What money did they use to "acquire the additional certificate?"

 

[PCL_128]

As of last month, Pinnacle had $66 million in the bank and an unsecured credit line of $17 million from a Memphis bank. That will last roughly a month to a month and a half before we start to feel the pinch. It's unlikely however that NWA will allow it to get to that point. If they do, then Pinnacle will go into Chapter 11 protection also and will be able to renegotiate the CRJ lease payments we make to NWA. Currently, NWA pays the lenders about $90,000 a month per CRJ and charges Pinnacle $185,000 per CRJ for us to lease them. It wouldn't be in NWA's best interest to put us in a position to be able to renegotiate that. It would be better for NWA to make the payments to us just a little late and then be able to renegotiate the ASA to reduce our guaranteed profit margins. That way, NWA gets to reduce our margins while still holding on to the profit they make from leasing the CRJs to us.

 

[TinGoose1]

And you guys don't think you'll feel the pinch from that? When people speak of a "monkey on their back", well NWA is a 600 lb gorilla. When they're on your shoulders, your on the ground with their paws around your throat. Your going to feel the pinch all right, all the way down into your kidneys. Good luck.

 

[SennaP1]

Doin good man, you still out in LGA? I am enjoying ORD....till the snow falls.

Yep, still doing LGA. Staying here for good. EZ Commute.

 

[LDavid]

What a difference a month makes for Mesaba. First getting 25 new CRJs then losing 35 avros. That sucks.

http://www.thestreet.com/_googlen/m...=FREE&cm_ite=NA

 

[xjlifer]

What a difference a month makes for Mesaba. First getting 25 new CRJs then losing 35 avros. That sucks.

http://www.thestreet.com/_googlen/m...=FREE&cm_ite=NA

Wow ell there it is...a FACT we are loosing the Avro....man that really sucks. Well if it is in print on the internet it must be true.

 

[Detroitpilot22]

ok so i was at 9e headquarters today, and the interview captains were def. there, it looked like they had just finished up interviews. Maybe they are still hiring, who knows.

 

[flagshipper]

I called a friend who does interviews and he said that they had interviews yesterday simply because it was too late to cancel them all on such short notice and they still need some people for the attrition which no doubt will continue at the current rate or speed up even

 

[redflyer65]

I doubt if Northwest allows either Mesaba or Pinnacle to enter bankruptcy. Both are too small to make it out. What lender is going to care if you have a few CRJ's and some Saabs? They aren't big enough to support a lengthy bankruptcy. It would be more like Chapt. 7.

 

[Detroitpilot22]

Northwest is going to do whatever they want to make them get out of this. They don't care about mesaba or 9e because they know that they have no one else to fly for besides northwest. This could get really ugly before it gets any better.