Pinnacle says Delta intends to terminate contract!

CRJDriver

CRJDriver

Well-Known Member
Pinnacle Airlines Calls Delta Attempt to Terminate Contract 'Wrongful'
Tuesday June 10, 8:13 am ET

Regional Carrier 'Surprised, Disappointed'

'Business as Usual' for Passengers, No Immediate Effect on Routes, Schedules

MEMPHIS, TN--(MARKET WIRE)--Jun 10, 2008 -- Pinnacle Airlines Corp. (NasdaqGS:PNCL - News) reported today that its Pinnacle Airlines, Inc. subsidiary has been notified by Delta Air Lines of Delta's intent to terminate Pinnacle's contract as a Delta Connection carrier, effective July 31. Pinnacle believes that this attempted termination is wrongful.

Delta contends that Pinnacle did not meet minimum arrival-time performance requirements for a period since flights began late last year. However, many factors affecting on-time performance are beyond Pinnacle's control, said Phil Trenary, Pinnacle Airlines Corp.'s president and chief executive officer. The operational schedule created by Delta is a key factor affecting on-time performance, he said. Under the capacity purchase agreement, Delta is required to collaborate with Pinnacle to create a mutually acceptable operating schedule. Delta has created Pinnacle's operational schedule since the beginning of operations in December 2007.

"We are extremely surprised and disappointed that Delta is attempting to take this drastic and improper action," said Trenary.

"From the very beginning of our Delta Connection operations, we expressed our concern that the flight schedules Delta created were unrealistic. Our position was affirmed when recent schedule changes by Delta allowed immediate improvement in our on-time performance, well above the agreed minimum standard and above most other Delta Connection carriers."

Pinnacle entered into a new capacity purchase agreement with Delta in April 2007 to operate 16 CRJ-900 aircraft as a Delta Connection carrier and began operations under the agreement in December. The CRJ-900 has operating costs that are the lowest among comparably sized regional jets, providing for an economic, efficient aircraft in the Delta network. Pinnacle has currently taken delivery of nine of the 16 CRJ-900 aircraft on order.

"We believe that the attempt by Delta to terminate this contract is wrongful, and we intend to pursue appropriate remedies," Trenary said.

Trenary emphasized that the issue between Pinnacle and Delta will have no immediate effect on schedules, routes or staffing.

"At this time, it remains business as usual for our passengers and our People," he said. "We look forward to building on our hard-earned reputation for operating a safe, reliable and cost-effective airline."

About Pinnacle Airlines Corp.

Pinnacle Airlines Corp. (NasdaqGS:PNCL - News), an airline holding company, is the parent company of Pinnacle Airlines, Inc. and Colgan Air Inc. Pinnacle Airlines, Inc. operates a fleet of 138 regional jets in the United States and Canada as Northwest Airlink and Delta Connection. Colgan Air Inc. operates a fleet of 57 regional turboprops as Continental Connection, United Express and US Airways Express. Pinnacle Airlines Corp. operating units fly over 1,000 daily flights and transport more than 10 million passengers a year to 140 cities and towns in North America. Visit www.pncl.com for more information.

http://money.cnn.com/news/newsfeeds/articles/marketwire/0405318.htm
 
crazy days ahead. I'm sure pcl will fight this till the end. The good news is PCL can find a new home for 900's a lot easier than mesa did for its 145's. I'm sure somehow this will be blamed on the crews, which is a total sham.
 
dingo222 said:
crazy days ahead. I'm sure pcl will fight this till the end. The good news is PCL can find a new home for 900's a lot easier than mesa did for its 145's. I'm sure somehow this will be blamed on the crews, which is a total sham.
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Actually, PCL management knows there wasn't anything the crews could do about it. They're blaming Delta management. Seems this is the "in" way to trim the regional contracts over at Delta right now. Shady if ya ask me since the contract has barely been effect for a year, and we've only been flying the -900s for them just over 6 months. Hell, we haven't even taken delivery of all of them yet. For June, Delta changed our flying schedule AFTER the lines were built and the planes scheduled.

FWIW, Delta has also been doing the "selective canceling" of flight with us, same as they were doing with Mesa. I wish I was a bit more optimistic on the whole placing those -900s as some people are. I'd be nice seeing as I just got in the left seat. I'd rather not get pushed back into the right seat or displaced from MEM to DTW.

Maybe we can get an injunction as well. Seeing as our performance numbers pulled a total 180 after the snow stopped.....
 
Hmmmm....this seems like it's the new Delta MO. While I loathe the -900 I feel bad for those guys who set up shop in Atlanta. Hopefully nothing happens till the courts hear PNCL side of things.
 
I think this illustrates just how much lead weight RJ's are with this type of oil costs. That is sure to be the next "containment" strategy for carriers.

I think before long lots of carriers' cash position will be in sufficient trouble that vendors won't even sell gas on account. Cash on site only. I see huge trouble ahead beginning with the next quarterly reports. We're in the calm before the storm.
 
SmitteyB said:
Because if PNCL is losing it, it should be flown by mainline.

Not another regional.
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You know how ridiculous that sounds?

That flights PNCL flies now are on lower yield routes. Why else put a RJ on it? Delta doesn't have the correct equipment to cover all their flying.

If you think during the current industry woes that Delta is going to be adding domestic routes and/or buying RJs so their mainline guys can fly it, well then you're sorely mistaken.

Don't get me wrong, I'd love for the mainline guys to have more flying. It just isn't going to happen while everyone is weathering the storm.
 
I always wondered this. . .and I suppose I could find it. . .but where exactly is this -900 going?

MEM, DTW, and MSP?

pat84106 said:
Skywest has already been given this replacement flying.
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Tread lightly. As a member of a Skywest Inc. subsidiary, I really don't want you making ALL of us look like #######s.
 
stuckingfk said:
You know how ridiculous that sounds?

That flights PNCL flies now are on lower yield routes. Why else put a RJ on it? Delta doesn't have the correct equipment to cover all their flying.

If you think during the current industry woes that Delta is going to be adding domestic routes and/or buying RJs so their mainline guys can fly it, well then you're sorely mistaken.

Don't get me wrong, I'd love for the mainline guys to have more flying. It just isn't going to happen while everyone is weathering the storm.
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I completely agree with everything you say- but would you like to see SKYW on it?

Their pilot group RESOUNDINGLY denounced ALPA or any type of union for a $1 raise.
 
Can Delta do this? They signed a contract, we havent violated any terms of agreement, have we? Can they just cancel an ASA whenever they feel like? Its not like they have BK protection anymore. it will be interesting.

On a side note, now management knows how it feels when the other party doesnt honor the contract.
 
surreal1221 said:
I always wondered this. . .and I suppose I could find it. . .but where exactly is this -900 going?

MEM, DTW, and MSP?



Tread lightly. As a member of a Skywest Inc. subsidiary, I really don't want you making ALL of us look like #######s.
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This is just my guess- but I think PNCL will get an injuction to keep flying it under the current CPA. By the time it gets to court, Delta will be in dire times, travel will decline and Delta will win in court. Thy this time- it will be winter.
 
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