Pinnacle Airlines Corporation (Memphis) has announced that it has received final approval from the United States Bankruptcy Court for the Southern District of New York for $74.3 million in debtor-in-possession (DIP) financing. The funding is being provided by Delta Air Lines, Inc. (Atlanta).

As previously announced, $44.3 million of the DIP financing will be used by Pinnacle to repay a secured promissory note held by Delta. The remaining $30 million will be available to fund operations during the restructuring process.

Pinnacle Airlines Corporation is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc.

Pinnacle intends to shut down the Colgan Air (United Express) operation at Houston (Bush Intercontinental) on July 1. However the Colgan Air Albany, New York maintenance base is expected to remain operational until December 1. Colgan intends to end Bombardier DHC-8-402 (Q400) operations as an United Express operator (to be replaced by Republic Airlines) by December 1 according to this article by the timesunion.com. Colgan Air is expected to be shut down as an airline at this time.

Read the full article: CLICK HERE

Top Copyright Photo: Jay Selman.

Delta-Pinnacle Slide Show: CLICK HERE

Colgan Air Slide Show: CLICK HERE

United Express-Colgan Slide Show: CLICK HERE

Three Bottom Copyright Photos: Brian McDonough.