Where Mesaba goes, Pinnacle Follows

[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.

 

[Workin'Stiff]

As it stands now, absolutely no one knows what's going on. It's all just speculation as to what could happen if payments continue to be withheld, or if the Avro's get parked and under what conditions those aircraft are taken out of service.

So until we actually hear what comes out of the courtroom on October 6th, lets all grab a beer and relax...

 

[dondk]

I would have to agree with the chapter 7 versus 11...

We don't own enough to leverage a Chapter 11, what would we gain under 11? Not enough to justify it that is for sure. Chap 7 (liquidation) would be more logical choice. I don't know Xj's position, but I would guess they would be in a similar boat.

Regardless, I don't see that happening yet, too many cards still need to be played. NWA is not known for just giving up routes and pax easily, I could see the regionals getting a bigger piece of the pie intially until NWA is able to break down the rest of the unions on the property. The key I think is how they handle the Avro's, that will let us know how down and dirty they plan on getting with XJ and 9E.

9E will just follow blindly and promise things we probably will not be able to deliver. Plan on yet another interesting winter.

 

[LDavid]

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.

I was trying to say that i sympathize with you. If you dont believe it, here it is straight from the horses mouth.

http://biz.yahoo.com/e/050923/mair8-k.html

 

[DTWFO]

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.

What are they going to do....lower my pay? I'm already at the poverty level! I'd rather be out of a job, they'd probably be doing me a faver!


Somehow your "good luck" at the end of your post doesn't seem so sincere after your other comments. Stick to commenting about your own crappy job.