dsuairptman
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Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 08, 2011 10:16 pm

http://www.bizjournals.com/memphis/n...hires-help-to-boost.html?ana=yfcpc

Sounds like a warning flag to sell the stock before the Ch. 11 filing.
GEAUX SAINTS!
 
blueflyer
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Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 08, 2011 10:39 pm

Pinnacle's choice of law firm certainly is interesting. Davis Polk & Wardwell... aka Frontier Airlines' principal counsel during their bankruptcy proceedings.

Davis Polk & Wardwell do a lot more than just bankruptcies, but it is nevertheless something worth watching closely.

[Edited 2011-12-08 14:41:07]
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LAXintl
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Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 08, 2011 10:47 pm

You guys realize the CEO of Pinnacle is Sean Menke of Frontier fame.


Issues surrounding Pinnacle have been building for a while, and now are at the point of producing quarter after quarter of losses and draining down the cash position.

Clearly some significant adjustments are called for.
From the desert to the sea, to all of Southern California
 
thegoldenargosy
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Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 08, 2011 11:10 pm

Quoting LAXintl (Reply 2):
Issues surrounding Pinnacle have been building for a while

Was the decision to buy Colgan & Mesaba a bad idea?
 
dsuairptman
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Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 08, 2011 11:11 pm

Quoting LAXintl (Reply 2):
Issues surrounding Pinnacle have been building for a while, and now are at the point of producing quarter after quarter of losses and draining down the cash position.

I've heard they would like to merge ops into a single certificate and also lessen the lease terms on the 200s. There is also talk that they are highly overstaffed in management positions.
GEAUX SAINTS!
 
blueflyer
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Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 08, 2011 11:38 pm

Quoting LAXintl (Reply 2):
You guys realize the CEO of Pinnacle is Sean Menke of Frontier fame.

Nope, didn't know that. Very enlightening.
Democracy 2016: 3 million California votes < 100,000 Midwest votes.
 
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airportugal310
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Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 12:38 am

I was just talking to my buddy who flies the Saab at Colgan and he is all afraid that company is going the way of Comair...

I'm not too sure what entails...thoughts?
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toltommy
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Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 12:54 am

Pinnacle signed a new agreement with Delta a few years ago when they bought Mesaba. I don't know if they've negotiated new contracts with UA/CO and US since they purchased Colgan. In the past, the Delta agreement became amendable if the regional carrier filed Ch11. Filing could open a can of worms for Pinnacle Corp and could wind up costing them contracts altogether, especially since most of the fleet on the Delta side is subleased from DL.
 
sunking737
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Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 12:58 am

Quoting thegoldenargosy (Reply 3):
Quoting LAXintl (Reply 2):
Issues surrounding Pinnacle have been building for a while

Was the decision to buy Colgan & Mesaba a bad idea?

I would say a, YES
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dsuairptman
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Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 3:04 am

Quoting TOLtommy (Reply 7):

Pinnacle signed a new agreement with Delta a few years ago when they bought Mesaba. I don't know if they've negotiated new contracts with UA/CO and US since they purchased Colgan. In the past, the Delta agreement became amendable if the regional carrier filed Ch11. Filing could open a can of worms for Pinnacle Corp and could wind up costing them contracts altogether, especially since most of the fleet on the Delta side is subleased from DL.

The ability to void contracts when a party files bankruptcy is usual boiler plate language in any contract. I'm not conveinced filing would nesseciarly end 9E DLX contract. It's true DL owns the planes, but taking them from 9E and subleasing them elsewhere wouldn't solve DL problem as they will still have them. They want to get rid of the 200s, but would have to have a pulldown schedule to do so and it would have to be planed, not occuring due to a regional bankruptcy, in order to be succesful.
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boberito6589
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Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 3:21 am

Quoting TOLtommy (Reply 7):
I don't know if they've negotiated new contracts with UA/CO and US since they purchased Colgan.

The US contract is coming to an end December 23rd for Mesaba, and the random Colgan flying will be ending as soon as possible, with the one exception of CRW-DCA. I almost wonder if it would be better for Pinnacle to lease these slots to US, I think they'd be able to get more money that way instead of flying a half filled SAAB around. Will Colgan be the only regional who only operates 1 route for the major carrier?
 
Dash8Driver16
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Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 4:29 am

Interesting. One question I have is what is happening to the Saabs? They are getting rid of all the US flying out of LGA which is around 6 airplanes. I am not sure when they will end Boston flying but it seems to be that there are quite a few Saabs that won't have anything to do?

The Bankruptcy filing is troublesome because they have so many different operating certificates how much is this going to effect the pilot group? I know Colgan was still doing some limited hiring but i would assume that that would end.

Maybe they will kill this route and PDT could pick it up.
 
futureualpilot
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Fri Dec 09, 2011 5:39 am

Colgan will still have the United Saab flying, as well as e Q400 flying that would have been increased already had the entire company not been so understaffed.

Further, and I don't know all the facts but when the JCBA was signed with the pilot group, Delta agreed to pay a share of the costs associated with the increased price tag that would result from the contract as well as the huge training cycle currently underway at Pinnacle Corp, a payment due in early 2012.

As far as equipment, the Saabs make money less than half full. The EAS routes are money makers, the non EAS routes are almost always full or close to it, and the last word around was that United wanted to hang onto them for a while at least in Dulles and Houston. Mesaba's B+ models are still supposed to come over to Colgan to replace some of the older B models.

The schoolhouse has been told to pu an additional 150 pilots through n the Saab by May. Staffing is still short system wide.

As with anything it could all change at the drop of a hat. With the company being this open about asking for concessions one can surely bet things will change.

[Edited 2011-12-08 21:40:58]
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toltommy
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Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 3:08 pm

Quoting dsuairptman (Reply 9):
The ability to void contracts when a party files bankruptcy is usual boiler plate language in any contract. I'm not conveinced filing would nesseciarly end 9E DLX contract.

I agree, but it opens a door to terminate the contract that does not exist today.

Quoting dsuairptman (Reply 9):
It's true DL owns the planes, but taking them from 9E and subleasing them elsewhere wouldn't solve DL problem as they will still have them.

Again we agree, not sure DL can afford to simply park them either. I don't recall if they are leased or owned aircraft by DL.
 
FURUREFA
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 6:51 pm

Quoting TOLtommy (Reply 13):

Quoting dsuairptman (Reply 9):
It's true DL owns the planes, but taking them from 9E and subleasing them elsewhere wouldn't solve DL problem as they will still have them.

Again we agree, not sure DL can afford to simply park them either. I don't recall if they are leased or owned aircraft by DL.

What does DL own/lease? Is it the CR2s, CR7s, CR9s or a combination?

As an aside, does anyone know where the CR7s G7 will begin operating for DL next year are coming from? Are they from OH?
 
apodino
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 7:18 pm

What a mess Phil Trennary left at Pinnacle. I don't see how Chapter 11 is avoidable. There is no way the unions are going to give concessions right after ratifying a new contract. The Mesaba boys are not going to cooperate, especially the FA's who got screwed as it is on this merger deal. Not to mention this company still has some 3407 issues that haven't been resolved and are not good from a PR standpoint.

The question I have is what impact would a Chapter 11 filing have? Arguably the only other DL connection partner who is in a position to pick up Pinacle flying would be Comair because they have pilots who could be recalled quickly and requalified in a timely manner. Given the costs at Comair though, that could only be a temporary solution. Some people may say Skywest could be in a position. I am not sure of that. Skywest has barely been breaking even themselves. Republic isn't in a position either because of their financial troubles.

But this also raises another question? What has happened to the regional model that the regionals cannot make money? Pinnacle is losing money and aside from the EAS flying almost all of their flying is fee per departure, which should be profitable. Skywest is the same way, and yet they barely broke even last quarter. RAH you can make an argument that F9 is killing their bottom line, but they also have issues with the Teamsters wanting a new contract. Those are the big three at the regional level. Mesa just came out of Chapter 11 and who knows how long they will last. TransStates and Air Wisconsin are privately held, so who knows how they are doing, but based on numbers that ALPA put out, Air Wisconsin is the most profitable regional operating at the moment, but who knows what their future holds beyond 2015.

I am going to keep a close eye on this because this will have major ramifications for the whole regional industry. If Pinnacle files Chapter 11 and imposes new contracts on labor, this is going to have a bad impact on both the Air Wisconsin and the Republic pilots who are negotiating new deals, and it will have a negative impact on the Expressjet guys in the quest for a joint contract with ASA, and over at OO, the pilots are not unionized so Jerry Atkin is in a major position of strength there.
 
kcrwflyer
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 7:50 pm

Quoting boberito6589 (Reply 10):
The US contract is coming to an end December 23rd for Mesaba, and the random Colgan flying will be ending as soon as possible, with the one exception of CRW-DCA. I almost wonder if it would be better for Pinnacle to lease these slots to US, I think they'd be able to get more money that way instead of flying a half filled SAAB around.

If you've got data to see the load factor you should also take a peek at the yield on the o&d. That said, I'm sure US would love to have the route.

Quoting thegoldenargosy (Reply 3):
Was the decision to buy Colgan & Mesaba a bad idea?

Mesaba is a toss up, but I can't imagine why anyone would want Colgan.
 
LOWS
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 9:46 pm

Quoting Kcrwflyer (Reply 16):
Mesaba is a toss up, but I can't imagine why anyone would want Colgan.

Lots of UA flying?
 
futureualpilot
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 10:44 pm

Quoting Kcrwflyer (Reply 16):
Mesaba is a toss up, but I can't imagine why anyone would want Colgan.

9L operates 2 types that are proven money makers with less than 50% of the seats filled, and the name is going away. Colgan will cease to exist. In practice, and in name, it will be Mesaba. 9L already had to decline additional flying for the Q400s due to staffing issues over the summer.
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FlyASAGuy2005
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 11:03 pm

Quoting TOLtommy (Reply 7):
Quoting FURUREFA (Reply 14):

DL owns all the original Mesaba CR9s inherited from NW. Pinnacle owns all 16 Atlanta based CR9s (PQ registrations).
What gets measured gets done.
 
bhmdiversion
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 11:27 pm

The employee conference call was held this morning.

Menke skirted the questions asked about the possibility of bankruptcy and concessions from all work groups (he specifically mentioned union and non-union work groups).

From the ones I know inside Pinnacle, this was very quick to be told to the group. 2 SVPs and 7 VPs are going to be let go (from what I have heard) and all other departments are going to reevaluate their staffing.

Menke also said that there are a lot of questions that they "cannot answer due to the uncertainity of what is going on". At no time during this call, did Menke inform the group how much $$$ was to be saved and what the EXACT calls for this situation were.

In a nutshell, SCREWED.

Good thing Trenary and Shockey get paid $$$ from their severance packages. The ones who are affected now will also be paid out. I have a feeling that they are bleeding cash, and cannot stop the flow.

Merry Christmas from Pinnacle Airlines Corp.
 
futureualpilot
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 09, 2011 11:57 pm

Quoting bhmdiversion (Reply 20):
Good thing Trenary and Shockey get paid $$$ from their severance packages. The ones who are affected now will also be paid out. I have a feeling that they are bleeding cash, and cannot stop the flow.

Their contracts must be honored yet the contract signed with the pilot group will come under fire. Feed those responsible to the dogs so those still working there can make an attempt at an honest wage. Pathetic.
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FlyASAGuy2005
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 12:29 am

Quoting FURUREFA (Reply 14):

The 12 CRJ700s are Delta owned and are currently operated by OO and EV. All the "CA" registered CR7s currently with ASA (8) and 4 from OO. Initial routes will be out of DTW.
What gets measured gets done.
 
Goldenshield
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 12:58 am

Quoting apodino (Reply 15):
Skywest has barely been breaking even themselves.
Quoting apodino (Reply 15):
Skywest is the same way, and yet they barely broke even last quarter.

The airlines actually made quite a bit of money---especially OO. The only reason the quarter looked thin was because of merger costs between EV and XE.
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dsuairptman
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 1:37 am

Quoting apodino (Reply 15):
Mesa just came out of Chapter 11 and who knows how long they will last. TransStates and Air Wisconsin are privately held, so who knows how they are doing, but based on numbers that ALPA put out, Air Wisconsin is the most profitable regional operating at the moment, but who knows what their future holds beyond 2015.

There is alot of bad blood between DL and YV over the demise of F8. I seriously YV would be considered for any flying DL put out for bid.

Trans States is something of a question mark. True Gojets is picking up some 700 flying, but would they go for 200s? All Gojet operates are 700s and TSA operartes the ERJ-145, so I'm not sure they would want to introduce the 200, (even sublet to them), to either cert.

ZW might be in good position. It would be for 200s, all sublet, so they wouldn't have to absorb financing additional AC for the flying and depending on the terms, it might give them business ending beyond the Airways contract. More of a win win here than the other two, IMHO.
GEAUX SAINTS!
 
toltommy
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 2:11 am

Quoting FlyASAGuy2005 (Reply 19):
DL owns all the original Mesaba CR9s inherited from NW. Pinnacle owns all 16 Atlanta based CR9s (PQ registrations).

My question is about the -200's. The -900s and -700s are aircraft DL wants to keep in the fleet. The -200s are the planes they'd like to dump more of.
 
n7371f
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 3:35 am

Quoting TOLtommy (Reply 25):
My question is about the -200's. The -900s and -700s are aircraft DL wants to keep in the fleet. The -200s are the planes they'd like to dump more of.

Before the merger with DL, Northwest leased all of the CRJ-200's and -440's and subleased them to Pinnacle. I am not privy to what happened after the merger, although I've never seen any document that indicated the 123 or so CR2's that Northwest leased were dropped in Pinnacle's lap. My understanding is Delta still is responsible for the leases.
 
FlyASAGuy2005
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 6:04 am

Quoting TOLtommy (Reply 25):

Okay I see. That I don't know. End strength numbers that I've seen over the past 3 months or so shows that they are on target and will be where they want to be moving into 2012 with the 50 seat fleet. They still serve a purpose and a huge # will continue to fly for the forseeable future but no, the number has not risen from what they put out in a press release last year when Comair's fate was made public. Unless something opportunitis happens, the last wave of lease returns will be through Q2 12.
What gets measured gets done.
 
Sean-SAN-
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 3:36 pm

Pinnacle operates essentially as an employment agency with a very small but gaurenteeded profit margin based on normal operations. The problem is, with the combined merger, the overblowned severance packages for former 9E execs, and basketcase they left behind exceed the profit margin by a large %. What you see now is the new team desperately attempting to get costs in line before the money runs out.
 
toltommy
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 10, 2011 10:04 pm

Quoting n7371f (Reply 26):
My understanding is Delta still is responsible for the leases.

That was mine as well, thanks.

Quoting FlyASAGuy2005 (Reply 27):
End strength numbers that I've seen over the past 3 months or so shows that they are on target and will be where they want to be moving into 2012 with the 50 seat fleet.

And that's why a CH11 filing is dangerous for 9E. DL has probably dumped all the 50 seat lift they could because the only place they really could reduce lift was from the Comair fleet (since its still wholly owned). If Pinnacle Corp were to file, DL might then be able to further reduce flying, by choosing to park some more of those 123 planes. Unless they file, DL probably has to pay a penalty to park airplanes under the current agreement. I think a CH11 filing, unless it's prepackaged, is the last thing Pinnacle Corp would really want to do.
 
cbphoto
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sun Dec 11, 2011 5:23 am

Quoting apodino (Reply 15):
The question I have is what impact would a Chapter 11 filing have? Arguably the only other DL connection partner who is in a position to pick up Pinacle flying would be Comair because they have pilots who could be recalled quickly and requalified in a timely manner.

I wouldn't count on that by a long shot! Most of the Comair furloughs are long gone and many gave up their seniority numbers to get on with other regional and Delta Connection carriers. Not to mention, Comair is running a bare bones operation right now with their current staffing levels. They would have to go through a lot of recalling and hiring just to obtain enough instructors and line check airmen to handle the amount of training needed to sustain the demand they would need to prop up the Pinnacle system. Also, every Comair furlough has been off property for more then 90 days, which would mean they would have to do most of the initial training all over again, which again would eat up more time!

In the end, Pinnacle should have left XJ alone and should have worked out the merger with them and Colgan! I can see this situation getting ugly and in a hurry at that!
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LAXintl
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sun Dec 11, 2011 5:58 am

For an idea of how things have turned south at Pinnacle here is their financial performance in recent years.

2009 – Profit $41.8mil / $126.8mil cash on hand
2010 – Profit $12.7mil / $100.1mil cash
2011 Q1 – Loss $3.0mil / $88.7mil cash
2011 Q2 – Loss $2.4mil / $81.8mil cash
2011 Q3 – Loss $3.5mil / $79.7mil cash
2011 Q4 – Est Loss $2.9mil
2012 -   

[Edited 2011-12-10 22:04:51]
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bhmdiversion
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sun Dec 11, 2011 3:06 pm

I'd say they are bleeding cash right now and not afraid to let it be known. It still boggles my mind since MEM has not released to the employees how much moeny they are trying to save -OR- what the exact position the financial security of the company is.

I guess Phil and Shockey were lucky - they knew about this before and go out before the sh*t really hit the fan. Maybe they are related to Johnny O at Mesa?
 
wingnutmn
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sun Dec 11, 2011 3:15 pm

Keep in mind, DL told Pinnacle Corp that they were going to buy XJ. That is why DL financed the purchase. All the rumors after the purchase centered around DL telling corp that thy needed to shape up or lose their contracts. DL basicaly gave Corp gaurunteed profits from XJ 900 flying that would have paid for the purchase outright over 5 yrs. That is also why XJ management took over many key positions in corp. Now, what wasn't accounted for in this merger was how badly f-ed up corp was running things. The costs to uust bring both 9e and 9l upto standard were alot. Through in a couple golden parachutes and a completely screwed up idea to move HQ to a shiny downtown building that was overpriced was a real deal breaker. If they file ch. 11, I would hope for just to break the lease on that HQ and to screw Phil and his cronies. Those 2 alone would make us profitable again. Why leave Eagan, it already has better equipment than the new HQ is installing!

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bhmdiversion
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Wed Dec 14, 2011 1:32 pm

There were more cuts that I heard on the Copr side yesterday. Anyone else heard anything?
 
sunking737
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Wed Dec 14, 2011 2:08 pm

Rule #1 In a merger/buy out... "There will be no changes forth coming"   

Rule #2 After that announcement..Always, but Always re-due your resume. (unless your union)

Rule #3 The crap will always hit the fan, and changes will happen.

Rule #4 Murphy's Law applies.   
Just an MSPAVGEEK
 
Rdh3e
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Wed Dec 14, 2011 2:29 pm

Quoting futureualpilot (Reply 18):
9L already had to decline additional flying for the Q400s due to staffing issues over the summer.

This was actually declined due to lack of aircraft from Bombardier was my understanding. BBD probably actually owes 9L a fair amount of money in compensation.
 
bhmdiversion
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Wed Dec 14, 2011 8:44 pm

Quoting sunking737 (Reply 35):

Welcome to my respected users list!
 
apodino
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 15, 2011 5:59 pm

And the hits just keep on coming. Word came out yesterday that the senior VP of Operations has now resigned as well. This has all the appearances of a sinking ship. I can't find a link though.
 
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airportugal310
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Thu Dec 15, 2011 7:06 pm

Quoting bhmdiversion (Reply 32):
I guess Phil and Shockey were lucky - they knew about this before and go out before the sh*t really hit the fan

I would assume that based on previous history and forecasting, that this stuff shouldn't come as a total shock anymore these days.

But, alas, I am not naive enough to actually think it
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bhmdiversion
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 16, 2011 3:47 am

Quoting apodino (Reply 38):
And the hits just keep on coming. Word came out yesterday that the senior VP of Operations has now resigned as well. This has all the appearances of a sinking ship. I can't find a link though.

You can google Memphis Business Journal and read about it there. This was part of the "cleaning" from the announcements last week.

Correct me if I am wrong, but I believe he was making $$$ with this position and I remember that all the Pinnacle folks I knew said they loved having the Former SOC Manager for NWA at Pinnacle now...
 
sunking737
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Fri Dec 16, 2011 5:03 am

Quoting bhmdiversion (Reply 40):
Correct me if I am wrong, but I believe he was making $$$ with this position and I remember that all the Pinnacle folks I knew said they loved having the Former SOC Manager for NWA at Pinnacle now...

Boils down to not what you know, but also who you know. I have gotten into jobs that way. One job interview was like 5 min to meet my boss and started the H.R. paper work.
Just an MSPAVGEEK
 
GentFromAlaska
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 17, 2011 12:48 am

Quoting LAXintl (Reply 2):
the CEO of Pinnacle is Sean Menke of Frontier fame.

If it can be fixed, he's the one that can do it. Menke has a remarkable resume
Man can be taken from Alaska. Alaska can never be taken from the man.
 
bhmdiversion
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 17, 2011 1:20 am

Quoting GentFromAlaska (Reply 42):
If it can be fixed, he's the one that can do it. Menke has a remarkable resume

Did I miss something... didn't he run Frontier into the ground and now he's doing it to Pinnacle? I guess he's 2 for 2. Glad MEM knows what's best for themselves and not the company.
 
dsuairptman
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 17, 2011 1:32 am

Quoting bhmdiversion (Reply 43):
Did I miss something... didn't he run Frontier into the ground and now he's doing it to Pinnacle? I guess he's 2 for 2. Glad MEM knows what's best for themselves and not the company.

Menke didn't run F9 into the ground. It was the credit card processing agency they used that started withholding 100% of payment until the pax departed. They did that nasty move because they couldn't cover there own butt due to the credit/housing bubble burst.

Porter then came in and in that process F9 wound up in Beford's hands and he has pretty much destroyed it, from what I've heard by those that have worked for RAH.
GEAUX SAINTS!
 
bhmdiversion
Posts: 274
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 17, 2011 1:44 am

From my perspective, the CEO should know the in's and out's of how the business is running and is the one who is RESPONSIBLE for everything that happens with that company. Sorry if I am bias, but this is what I feel.

If the name on my paycheck is my CEO and I lost my job because of something that the G.O. did, I'd blame him.
 
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mariner
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Joined: Fri Nov 23, 2001 7:29 am

RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 17, 2011 1:48 am

Quoting dsuairptman (Reply 44):
Porter then came in and in that process F9 wound up in Beford's hands and he has pretty much destroyed it, from what I've heard by those that have worked for RAH.

Jeff Potter - not Porter - left when Sean Menke took over at Frontier.

As for being "destroyed' - Frontier was profitable last quarter and they are anticipating a profit this quarter. Assuming it happens it will be one of the few times in its history that Frontier has made a profit in Q4.

mariner
aeternum nauta
 
m404
Posts: 1875
Joined: Tue Nov 25, 2003 4:43 pm

RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 17, 2011 7:36 am

I'm wondering what this will mean for the new big HQ that they are moving into in Memphis? Not to mention all the tax breaks/incentives the city gave them to take the place.
Less sarcasm and more thought equal better understanding
 
GentFromAlaska
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RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sat Dec 17, 2011 3:31 pm

Quoting bhmdiversion (Reply 43):
didn't he run Frontier into the ground and now he's doing it to Pinnacle?

As I recall Menke was at the helm a good year spear heading F9 exits from bankruptcy. Everything I read lead me to believe he was on the fast track emerging F9 back from near extinction, even before RAH entered into the picture. There are several threads and potentially hours of reading archived in this medium if you want to back track and read the subject matter.
Man can be taken from Alaska. Alaska can never be taken from the man.
 
bhmdiversion
Posts: 274
Joined: Mon Dec 29, 2008 2:41 pm

RE: Pinnacle Air In Financial Trouble; Shares Plunge

Sun Dec 18, 2011 8:18 pm

Quoting GentFromAlaska (Reply 48):
As I recall Menke was at the helm a good year spear heading F9 exits from bankruptcy.

One question - was he the CEO when they declared BK? The CEO position is responsible for ANYTHING and EVERYTHING a company does - good or bad.

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