Pinnacle Purchases Colgan Air

Re: Newswire from pcl website:

Yeah, I'm not following either. Don't see anything about merging seniority lists. Keep in mind the holding company is the one that bought Colgan. I'm referring to keeping Pinnacle Airlines, Inc and Colgan seperate.

Although, I did read lower that they are going to keep the two separate. But, as stated earlier, that's the best way to whipsaw the two against each other. Merger the lists, and they lose that.
 
dingo222 said:
i see the whipsaw coming for pcl pilots. that sucks, you guys are way overdue. I see colgan pilots getting casted as scabs later on for taking planes or flying from pcl since we are non union. whats the number to truck masters again?
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Sadly, there's truth to that. I've already talked to Seggy today, and we're both beside ourselves. We don't wanna get whipsawed in the middle of negotiations and they don't wanna get painted as the bad guys. Truthfully, MANAGEMENT is the bad guy if that happens, not the pilots. I don't see the Colgan guys taking a pay cut. It's already low enough over there. I see management using that fact to keep us from getting the pay raises we need and deserve over here.
 
<Mod note: Sorry if the sequence of posts above this point reads funny. I merged the posts from the Pro Pilot Corner into this thread. Same topic, more traffic here, and a good General Topics topic.>




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kellwolf said:
Sadly, there's truth to that. I've already talked to Seggy today, and we're both beside ourselves. We don't wanna get whipsawed in the middle of negotiations and they don't wanna get painted as the bad guys. Truthfully, MANAGEMENT is the bad guy if that happens, not the pilots. I don't see the Colgan guys taking a pay cut. It's already low enough over there. I see management using that fact to keep us from getting the pay raises we need and deserve over here.
Click to expand...

Colgan would dissolve if a paycut were ordered.
 
OMG I just lost $50 on this Rumot. Someone mentioned it to me the other day and I said no way not gonna happen.

Gees!

Best of luck guys and remember that at the end of the day we are all on the same team. It's management that sucks.
 
Well, having listened to today's conference call and reading the pdf attchments that Dot sent out to the folks at the company it seems like it's mostly harmless right now. Hopefully what it means for colgan is a chance to get some larger planes (please not rjs tho...) and maybe a union on campus to cut down on the incidences of being colganed. Ever the optimist me. :)
 
I won't call it "harmless" until our contract is done. They can still try to use you guys as a scare to get us to cave on pay and work rules. I don't want either pilot group to wind up in that position, but this IS airline management.....
 
The last thing they would want is for us to be union. THey will try to keep us as seperate as possible. That was they could play us against each other. Look at Skywest and ASA. ASA took the beating and skywest got painted as the bad guys. NEither pilot group was at fault. Damn mgmt!!!!! This has short term potential growth written all over it for colgan. I also see a lot of changes coming down. Maybe putting saabs on some of pcl's shorter routes, jets on our longer ones and vise versa. I know the first person that compares colgan to gojets is going to get a fist in the face, lol.
 
dingo222 said:
The last thing they would want is for us to be union. THey will try to keep us as seperate as possible. That was they could play us against each other. Look at Skywest and ASA. ASA took the beating and skywest got painted as the bad guys. NEither pilot group was at fault. Damn mgmt!!!!! This has short term potential growth written all over it for colgan. I also see a lot of changes coming down. Maybe putting saabs on some of pcl's shorter routes, jets on our longer ones and vise versa. I know the first person that compares colgan to gojets is going to get a fist in the face, lol.
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They already have that. They're flown by Mesaba.:yup:

just trying to add a little light-heartedness is that even a word?) to what may be a very tense subject.
 
Actually, I just re-read the scope clause in our contract. Unless we relax the scope, we're required to fly any flying contracted with Pinnacle Airlines Inc AND Pinnacle Airlines Corp. I wasn't sure until someone pointed out a small little side note saying that any flying with the airline OR A COMPANY IN POSSESSION OF THE AIRLINE must be flown by pilots on the Pinnacle seniority list. The Colgan stuff is safe since it's contracted with them and not Pinnacle Airlines Corp. I don't think they can flip flop equipment types since it's two separate certificates.

Colgan isn't Go Jets. You guys didn't ask to be in this position. Those guys know where they are going, or should.
 
dingo222 said:
The last thing they would want is for us to be union. THey will try to keep us as seperate as possible. That was they could play us against each other.
Click to expand...

That may be true, but unlike the previous regime where the mention of a union coming on campus would result in them "locking the company doors for good" it would perhaps be a little less difficult. I would much prefer to have one. Playing us against one another might be a bit more difficult since we don't fly under the same banners for the same carriers but I could be completely wrong about that. Either way, it probably wont help wage negotiations for the PCL folks though and that sucks.
 
This is a joke, right? What does Pinnacle want with Colgan? From reading the press release, they are attempting to break into other RFP's via Colgan? Also, Colgan was bought for only $20 million? That's it? Something doesn't sound right about that.

WTF? I'm so confused.
 
Re: Pinnacle buys Colgan?

Here is the link if anyone is interested

http://www.marketwire.com/mw/release_html_b1?release_id=204591



MEMPHIS, TN -- (MARKET WIRE) -- January 18, 2007 -- Pinnacle Airlines Corp. (NASDAQ: PNCL) today announced the purchase of Colgan Air, Inc., which maintains its headquarters in Manassas, Virginia. Pinnacle Airlines Corp. is the parent company of Pinnacle Airlines, Inc., a regional airline doing business as Northwest Airlink.

Pinnacle Airlines Corp. will pay $20 million for all of the issued and outstanding capital stock of Colgan Air, with $10 million in the form of an immediate cash payment and $10 million in the form of a one-year note secured by the stock of Colgan Air. The acquisition will be completed today subject to any applicable regulatory review.

Colgan Air is a premier turbo-prop regional airline operating as Continental Connection, United Express and US Airways Express. Launched in 1991 as a family-owned and operated company, today Colgan Air offers 354 daily flights to 53 cities in 13 states. Colgan is recognized for the exceptional service levels it provides its Customers and is a leader in providing air service to small and medium-sized cities in the United States. Colgan operates 39 Saab 340 and 11 Beech 1900 regional airliners, and has hub operations in Boston, Houston, New York, Pittsburgh and Washington, D.C. Colgan Air employs approximately 1,100 People and transported nearly 1.5 million Customers in 2006. Colgan has experienced strong revenue growth over the past years. In 2005 Colgan had revenues of approximately $137 million. Colgan projects that it will have revenues of approximately $190 million in 2006.

"This is a strategic move for our organization and offers Pinnacle Airlines Corp. extraordinary opportunities by diversifying and expanding into multiple platforms," said Philip H. Trenary, President & CEO of Pinnacle Airlines Corp. "Colgan Air has a highly productive workforce with knowledge, experience and fantastic dedication."

This purchase provides Pinnacle Airlines Corp. with two separate platforms for growth.

Mr. Trenary continued, "The purchase of Colgan Air gives our corporation access to and relationships with three of the largest carriers in the United States: Continental Airlines, United Airlines and US Airways. When combined with Pinnacle Airlines, Inc.'s airline services agreement with Northwest Airlines, Pinnacle Airlines Corp. now code-shares with a significant proportion of the major airlines in the United States. These new relationships will be invaluable to helping grow both Pinnacle Airlines, Inc. and Colgan Air."

Mr. Trenary also explained that the newly expanded corporate organization will be better able to diversify fixed costs across a wider base, creating more efficiency and lowering unit operating costs at both carriers. "We believe both airlines will be more competitive in the marketplace as a result of this purchase."

Pinnacle Airlines Corp. expects that the acquisition of Colgan Air will result in a slight increase to consolidated earnings per share for the year ended December 31, 2007, with a more significant positive impact in future years as both airlines benefit from the customer relationships and economies of scale that this acquisition brings.

Mike Colgan, President & CEO of Colgan Air, will remain in his current capacity as President and CEO of Colgan Air, Inc. for the immediate future. Mr. Colgan will be an instrumental liaison between Pinnacle Airlines Corp. and Colgan Air as they create a seamless transition for the current Colgan customers.

Mr. Colgan stated, "We are very proud of Colgan Air and see this as an exciting step forward. While this was not an easy decision for our family, we considered the strength of Pinnacle Airlines Corp. and its management team as an opportunity to continue the growth of the company in an ever-evolving industry. The employees of Colgan Air are more than just employees here -- they are family. Collectively, the entire Colgan Air Family, along with our customers, has made this possible. The management team of Pinnacle Airlines Corp. has been long-time friends and industry colleagues; I join them in welcoming everyone to this new and exciting venture."

Phil Trenary added, "Colgan Air is a family-centric organization with a positive attitude and an excellent team of service focused professionals. This makes Colgan an excellent cultural fit with our company and our People. Additionally, we are pleased that several members of the Colgan family will continue to work with us through the transition and into the future."

Pinnacle Airlines, Inc. and Colgan Air will operate as two separate entities with independent and separate management structures. Pinnacle Airlines Corp. and Pinnacle Airlines, Inc. will remain at the current headquarters in Memphis, TN. Colgan Air will maintain its operational headquarters in Manassas, VA, provided it continues to make operational and financial sense for the organization.

Pinnacle Airlines Corp., an airline holding company, is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Pinnacle Airlines, Inc. operates under the name Northwest Airlink and operates 127 Canadair Regional Jets in the United States and Canada. Colgan Air, Inc. operates as Continental Connection, United Express and US Airways Express. Colgan Air operates a fleet of 39 Saab 340 and 11 Beech 1900 turbo-prop regional airliners.

Safe Harbor

This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including those set forth in our filings with the Securities and Exchange Commission, which are available to investors at our web-site or on line from the Commission. Should one of more of these risks or uncertainties materialize, or should underlying assumptions prove erroneous, actual results may vary materially from results that were anticipated or projected. The Company does not intend to update these forward-looking statements before its next required filing with the Securities and Exchange Commission.
 
Well, I think this would be a really good time for ALPA to push for a vote at Colgan, and PCL to add a merged seniority list to their contract demands.

While they might not want to merge and some lose seniority to senior Colgan pilots, it would totally nip the whipsaw in the bud.

We really need to operate like RAH, separate companies, one pilot group.
 
In "Chef's" voice:

Todays lesson today, childrens, is "single carrier status", can we all say "single carrier status?" :)
 
wtf.JPG
 
Wow, sounds like when I grow up and become and airline pilot, that I won't need to watch soap operas anymore.

This plays out like a big soap reveal. That your long lost husband who returned from a 10 year absence, and who is now in a coma is really your brother twice removed. And your dad really isn't your dad. But your uncle!

:insane:
 
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