Pinnacle Airlines Corp. announced on Thursday that it and its wholly owned subsidiaries have entered into comprehensive agreements that provide a path forward for the company to emerge from bankruptcy with a competitive cost structure and a viable long-term business plan. The airline filed for bankruptcy in April.
Under Pinnacle's new business plan, the company will transition its fleet to operate 81 fuel-efficient, two-class regional jets for Delta Air Lines Inc. Pinnacle currently operates a fleet of 191 regional jets as a Delta Connection service.
Pinnacle will receive Delta Connection's next 40 CRJ-900 aircraft awarded, setting Pinnacle's long-term fleet plan at 81 CRJ-900 aircraft. The 40 additional CRJ-900 aircraft deliveries are planned to begin in the fall of 2013 and are expected to be completed by year-end 2014. Pinnacle's 140 CRJ-200 aircraft will be removed from operation over the next two to three years.
"The agreements we have reached represent a significant milestone in Pinnacle's restructuring and provide a clear and achievable path toward emergence from Chapter 11," said John Spanjers, president and CEO of Pinnacle Airlines Corp. "Pinnacle will be well positioned to emerge from the bankruptcy process with a viable business plan that provides meaningful opportunities for our employees. We are confident that Delta will continue to be a strong partner and we look forward to working closely together to provide outstanding service and operating a safe, reliable airline.”
Pinnacle Airlines Corp., an airline holding company with 5,100 employees, is the parent company of Pinnacle Airlines, Inc. Flying as Delta Connection, Pinnacle provides 1,000 daily flights to more than 100 cities in the United States and Canada. The airline’s corporate offices are located in Memphis, Tenn., and hub operations are located in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis and New York.
Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors' Committee by Feb. 15.
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