9E Headquarters to move to Minnesota
- Thread starter v1valarob
- Start date
v1valarob
Well-Known Member
After an exhaustive, complex evaluation lasting many months, we have decided to relocate the Pinnacle Airlines headquarters to Minnesota. This is a significant milestone in our restructuring and represents substantial progress that we expect will allow us to continue down a path toward successfully emerging from bankruptcy.
As I have noted before, Chapter 11 meant that we had the responsibility to explore every aspect of our business to find opportunities to reduce costs, including evaluating our property leases, to find the most cost-effective options for Pinnacle. Both the State of Minnesota and Memphis presented very strong cases. In the end, it was an economic decision.
Our tentative plan calls for the move to Minnesota to be completed by May. We will be located in vacant space leased by Delta on MSP airport property. You are well aware of the complex logistics of relocating an operation such as ours, with hundreds of people, critical information systems and an SOC that operate around the clock. Specific timelines will be forthcoming as soon as the details of the relocation plan can be finalized.
As we emerge from Chapter 11, we will be a very different company than when we started the process in April 2012. We will be a single airline operating as a separate entity, but wholly owned by Delta Air Lines, with a smaller fleet of aircraft and workforce. Decisions will have to be made by the company about the management and staff structure. Personal decisions about whether or not to relocate to Minnesota will also be a major part of the process.
As soon as possible, information about relocation packages, severance or retirement packages will be made available to help with any individual decision-making that might be required. I realize that these are not easy decisions and that they affect families as well. We will do everything we possibly can to make this transition as smooth as possible.
As I have noted before, Chapter 11 meant that we had the responsibility to explore every aspect of our business to find opportunities to reduce costs, including evaluating our property leases, to find the most cost-effective options for Pinnacle. Both the State of Minnesota and Memphis presented very strong cases. In the end, it was an economic decision.
Our tentative plan calls for the move to Minnesota to be completed by May. We will be located in vacant space leased by Delta on MSP airport property. You are well aware of the complex logistics of relocating an operation such as ours, with hundreds of people, critical information systems and an SOC that operate around the clock. Specific timelines will be forthcoming as soon as the details of the relocation plan can be finalized.
As we emerge from Chapter 11, we will be a very different company than when we started the process in April 2012. We will be a single airline operating as a separate entity, but wholly owned by Delta Air Lines, with a smaller fleet of aircraft and workforce. Decisions will have to be made by the company about the management and staff structure. Personal decisions about whether or not to relocate to Minnesota will also be a major part of the process.
As soon as possible, information about relocation packages, severance or retirement packages will be made available to help with any individual decision-making that might be required. I realize that these are not easy decisions and that they affect families as well. We will do everything we possibly can to make this transition as smooth as possible.
ClarkGriswold
Non Nutritive Cereal Varnish Engineer
I love the first paragraph. Exhaustive evaluation, Riiiighhhttttt
Maurus
The Great Gazoo
When did this happen? Definitely doesn't bode well for 9E peeps.
Hernandezcfi
Well-Known Member
I saw plenty of perfectly good dumpsters in Memphis that could have been moved into.
SlumTodd_Millionaire
Most Hated Member
Maurus said:
Actually, I would wager that it bodes very well for them. Look at Anderson's history with the Airlinks. His MO is to pit them against each other to get concessions. That step for PCL is now complete. He can move on to step two, which is acquiring the now lean and mean carrier. He then builds it up over a period of years to prepare it for an IPO. He takes it public for a big profit, and the carrier does well for a number of years until he's ready to start the process over again.
So, I would say that the likely outcome of this is good over the next few years after the initial contraction is complete. In the long-term (10+ years), not so good, because the process repeats itself. But that's why you don't try to make a career out of a contractor. But after the contraction is done and Pinnacle starts hiring again as people bail out, I would say that Pinnacle would be a great choice for any new pilot looking to get started in the industry.
kellwolf
Piece of Trash
Except now with new rule changes requiring more experienced FOs (no more 270 hour wonders coming out of ATP, JetU, etc), a likely shortage for regional staffing on the horizon, scope limits on regional aircraft and mainline carriers wanting regional partners to share more costs, I'm not sure an IPO is a realistic option in the current environment. When was the last successful regional IPO? Let's also not forget that the people left at Pinnacle are ALL going to be topped out on the pay scale. At that point, 9E starts to look more like Comair than Express I or Mesaba.
As for Pinnacle hiring when people bail, look how many are going to have to bail for Pinnacle to hire off the streets when all is said and done. A VERY good chunk of them will just have to say "F it" and leave the industry for that to happen in the next 3 or so years. Maybe once retirement start up in force it'll happen, but not any time soon.
As for Pinnacle hiring when people bail, look how many are going to have to bail for Pinnacle to hire off the streets when all is said and done. A VERY good chunk of them will just have to say "F it" and leave the industry for that to happen in the next 3 or so years. Maybe once retirement start up in force it'll happen, but not any time soon.
jynxyjoe
Queso King
This is a song that does not end, yes it goes on and on my friends, some people started singing it not knowing what it was, but they'll continue singing it forever just because this is the song that does not end, yes it goes on and on my friends, some people started singing it not knowing what it was, but they'll continue singing it forever just because this is the song that does not end, yes it goes on and on my friends, some people started singing it not knowing what it was, but they'll continue singing it forever just because this is the song that does not end, yes it goes on and on my friends, some people started singing it not knowing what it was, but they'll continue singing it forever just because this is the song that does not end...
Autothrust Blue
Welcome aboard the Washington State Ferries
kellwolf
Piece of Trash
Nah. They've been MEM based since long before I started there in 2006. They moved the HQ from over by the airport to a swanky downtown address so Uncel Phil could look awesome at the black tie dinners and fund raisers he went to. A move which contributed quite a bit, I believe, the the current financial problems. But, hey. Unlce Phil looked good for about a year (maybe less) and took his multi-million dollar consulting parachute.....
Maurus
The Great Gazoo
Or it could just get comaired. Decimate the fleet and slowly kill it off. Who knows. Paying top dollar for the crew on every one of those 700s and 900s will definitely be more expensive than sending them to an airline with a newer pilot group.
So far the whole "owned by delta thing" has a 50% chance of ending badly. ASA and Compass seem to be doing well. Mesaba got screwed and Comair is gone.
I understand working for contractors is bad. I don't plan on sticking around the contract thing long term. Unfortunately this plan doesn't always work. The stagnation of AE seniority is a good example.
Cruise
Well-Known Member
Considering all the Mesaba cronies are running the show these days, this was inevitable. Let's bankrupt the company to move to the Crystal Palace.....and then pay again to move the bankrupt company 800+ miles. Yep, seems like a great plan! But hey.....at least all the execs will get to move back home.
#trainwreckcompany
#trainwreckcompany
bronco21016
I know H.T.M.L. (How To Meet Ladies)
Been waiting for this. People can carry on about how its a waste money etc but I can't even begin to describe how happy I am that basically all of scheduling is about to be replaced. I can't imagine any of them relocate and I'm pretty sick of dealing with them. I can't wait until training's house is completely cleaned out too. I've never had any UNSATs but I cannot stand going down there and doing the dance around the NMFC's games of look how much more I know than you about useless stuff. Oh and that's after you deal with hotels, gate agents, and training scheduling messing up your deadhead etc.
I firmly believe a new SOC in Minneapolis should make everyone's life just a little bit easier once the transition is complete.
Time to forget Memphis even exists! Next step forget Pinnacle even exists!
I firmly believe a new SOC in Minneapolis should make everyone's life just a little bit easier once the transition is complete.
Time to forget Memphis even exists! Next step forget Pinnacle even exists!
kellwolf
Piece of Trash
Don't get to psyched on training getting completely cleaned out. A lot of those guys were already going to MSP for LOFTs, etc. Being in the training department is a bragging point for some guys. Don't be surprised to see them commuting up to MSP to keep it.