Category Archives: Colgan Air (2nd)

Pinnacle Airlines Corporation loses $2.4 million in the second quarter

Delta Connection-Pinnacle Airlines Bombardier CRJ200 (CL-600-2B19) N8588D (msn 7588) MSP (Bruce Drum), originally uploaded by Airliners Gallery.

Pinnacle Airlines Corporation (Memphis) reported a net loss and net loss per share for the second quarter of 2011 of $2.4 million and $0.13, respectively.

Pinnacle Airlines Corporation is the airline holding company with 7,700 employees and is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. flying as Delta Connection, United Express and US Airways Express.

Pinnacle Airlines Corporation operating subsidiaries operate 202 regional jets and 84 turboprops on more than 1,500 daily flights to 196 cities and towns in the United States, Canada, Mexico and Belize.

The 35% year-over-year increase in the price per gallon of aircraft fuel negatively impacted Colgan’s Pro-Rate operations by $2.1 million during the second quarter of 2011.

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Pinnacle’s first quarter net profit slips to $100,000

Colgan Air (2nd) SAAB 340B N321CJ (msn 321) IAD (Brian McDonough), originally uploaded by Airliners Gallery.

Pinnacle Airlines Corporation (Memphis) reported financial results for the first quarter of 2011. Net income and diluted earnings per share were $0.1 million ($100,000) and $0.01, respectively, excluding a special item.

This is the first period in which the holding company is experiencing the effects of the new pilot contract with the Air Line Pilots Association (ALPA) that was entered into in February 2011, increasing pilot compensation and benefits costs by $2.1 million for the quarter.

The holding company recorded $5.8 million ($3.1 million, net of related income taxes) of special charges for integration, severance, and contract implementation costs. Including these special items, the Company’s net loss and net loss per share were $(3.0) million and $(0.16), respectively.

Breakdown by each company:

Pinnacle Airlines, Inc. (Memphis) reported first quarter 2011 operating income and an operating margin of $9.0 million and 5.5%, a decrease of $4.8 million and 3.3 points, respectively, from the first quarter of 2010. Pinnacle’s operating income decreased primarily as a result of weather related performance penalties and increased pilot wages under the new labor agreement with ALPA.

Mesaba Aviation (Minneapolis/St. Paul) reported operating income and an operating margin of $1.1 million and 1.6%, respectively. Mesaba’s financial results were negatively impacted by weather conditions during the quarter as well as the wind-down of Delta’s turboprop operations as structured under the capacity purchase agreement (“Saab DCA”). The Saab DCA is structured to adjust revenue at the beginning of each year and on a prospective basis to reflect increased pilot and mechanic costs associated with the wind-down of operations. During the first quarter of 2011, the Company did not record estimated revenue of approximately $0.5 million associated with this rate adjustment. Revenue will be recorded upon final determination of the rate adjustment, which the Company expects to occur in the second quarter of 2011.

Colgan Air, Inc. (Memphis) reported an operating income and an operating margin of $2.0 million and 2.9%, an improvement of $3.1 million and 4.8 points, respectively, from the first quarter of 2010. The increase in operating margin was mainly attributable to the growth of Q400 operations during the quarter with United, partially offset by lost revenue from cancellations associated with winter weather. The improved operating results were also negatively impacted by an increase in pilot wages and a 32% year-over-year increase in the price per gallon of aircraft fuel.

Pinnacle Airlines Corporation is a $1 billion airline holding company with 7,700 employees and is the holding company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 202 regional jets and 88 turboprops on more than 1,600 daily flights to 196 cities and towns in the United States, Canada, Mexico and Belize. Hub operations are located at 11 major U.S. airports.

Colgan’s routes in the Northeast:

Pinnacle Airlines Corporation has a successful fourth quarter and 2010

Delta Connection-Pinnacle Airlines Bombardier CRJ200 (CL-600-2B19) N8588D (msn 7588) MSP (Bruce Drum), originally uploaded by Airliners Gallery.

Pinnacle Airlines Corporation (Memphis) today reported fourth quarter 2010 net income of $2.6 million and diluted earnings per share (“EPS”) of $0.14, excluding a $10.9 million ($6.8 million after-tax) special charge to accrue for a signing bonus and related payroll taxes for pilots under a new tentative collective bargaining agreement (the “Pilot Signing Bonus”). Including this charge, the Company reported a net loss of $4.3 million and a net loss per share of $0.23 for the fourth quarter 2010. The Company reported net income and EPS of $5.6 million and $0.31, respectively, for the fourth quarter 2009.

Excluding the Pilot Signing Bonus, the Company’s consolidated net income for the full year 2010 was $19.6 million, a decrease of 16% compared to 2009 net income excluding special items. Full year 2010 EPS excluding the Pilot Signing Bonus was $1.06, a decrease of 17% as compared to 2009 EPS excluding special items. For a summary of the Pilot Signing Bonus and special items affecting 2009, please see the attached “Reconciliation of Non-GAAP Disclosures” tables.

In addition to the Pilot Signing Bonus, the Company’s fourth quarter 2010 financial results were negatively impacted by costs related to the initiation of new Q400 service for United Airlines. Colgan Air, Inc., (“Colgan”), the Company’s regional turboprop operating subsidiary, accepted delivery of six Q400 aircraft during the fourth quarter. Prior to placing the aircraft into service under the capacity purchase agreement with United, Colgan incurred interest and depreciation expense on the aircraft and labor costs associated with hiring and training crews for the aircraft. Implementation of the Q400 fleet expansion will continue through the first quarter, after which the Company expects the Q400 growth to have a favorable impact to 2011 earnings. In addition, the Company’s financial results for the fourth quarter were negatively impacted by winter storms in December. As is common within the regional airline industry, the Company’s subsidiaries cancelled a higher percentage of flights during irregular operations than the Company’s major airline partners so as to minimize the number of passengers affected by weather cancellations.

Mesaba Aviation, Inc. (Minneapolis/St. Paul), which the Company acquired on July 1, 2010, achieved operating income of $3.8 million and $6.8 million for the three and twelve months ended December 31, 2010, respectively. After taking into account interest expense on a $63.3 million note issued as part of the acquisition, Mesaba’s financial results have been accretive to the Company’s consolidated net income and EPS. In addition, the Company’s operating cash flows were improved by approximately $23 million during 2010 due to the acquisition of Mesaba.

Above Copyright Photo: Bruce Drum. Please click on the photo for additional information.

Colgan Air Route Map:

Below Copyright Photo: Tony Storck. Please click on the photo for additional information.

Pinnacle Airlines Corporation reports 2Q net income of $5.9 million

Delta Connection-Pinnacle Airlines Bombardier CRJ200 (CL-600-2B19) N8588D (msn 7588) MSP (Bruce Drum), originally uploaded by Airliners Gallery.

Pinnacle Airlines Corporation (Memphis), the holding compay for Pinnacle Airlines, Colgan Air and Mesaba Aviation (Mesaba Airlines), reported second quarter 2010 net income of $5.9 million and fully diluted earnings per share (“EPS”) of $0.32, as compared to net income and EPS for the second quarter of 2009 of $7.3 million and $0.40, respectively, excluding prior year special items. The Company reported consolidated operating income of $19.8 million in the second quarter of 2010, a decrease of $3.9 million from the second quarter of 2009, excluding prior year special items. Among other items, the second quarter of 2010 was negatively affected by higher aviation insurance premiums that were the subject of a previously reported dispute with Delta and were not reimbursed totaling $1.7 million ($1.0 million net of related income taxes). The Company has resolved this dispute with Delta and does not expect to incur any additional future un-reimbursed aviation insurance premiums under its Delta Connection agreements. Second quarter 2010 pre-tax income was also reduced by a $1.5 million ($1.0 million net of related income taxes) adjustment to the fair value of interest rate options that the Company purchased to hedge interest rates in connection with the Company’s Q400 growth program.

The Company acquired Mesaba Aviation, Inc. from Delta Air Lines on July 1, 2010. Mesaba operates a fleet of 60 Canadair regional jet aircraft and 32 Saab 340B+ turbo-prop aircraft. With this acquisition, the Company’s consolidated fleet has grown from 190 regional aircraft to 282.

In late July, the Company took delivery of the first of 15 additional DHC-8-402 (Q400) regional aircraft to be operated by Colgan Air under the Company’s operating agreement with Continental Airlines. The Company expects to take delivery of seven additional Q400 aircraft in 2010, and seven Q400 aircraft in the first half of 2011.

Copyright Photo: Bruce Drum. Pinnacle Airlines’ (Delta Connection) Bombardier CRJ200 (CL-600-2B19) N8588D (msn 7588) arrives at the MSP hub.

Colgan Air will not operate the seasonal New York (LaGuardia)-Hyannis route this summer for US Airways

Colgan Air (US Airways Express) (Manassas) will not restore the seasonal New York (LGA)-Hyannis route this summer.

Pinnacle Airlines Corporation reports 4Q and 2009 financial results

Pinnacle Airlines Corporation (Memphis) reported fourth quarter 2009 net income of $5.6 million. This represents an increase of 153 percent over net income recorded in the fourth quarter of 2008 of $2.2 million.

For the year ended December 31, 2009, the Company reported net income of $41.9 million, an increase of 68 percent over net income of $13.8 million in 2008, excluding special charges.

Pinnacle Airlines Corporation, an airline holding company, is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Pinnacle Airlines, Inc. operates under Delta brands and operates 126 CRJ200 and 16 CRJ900 regional jet aircraft. Colgan Air, Inc. operates as Continental Connection, United Express and US Airways Express and operates a fleet of 14 Bombardier DHC-8-402 (Q400) and 34 SAAB 340 turboprop aircraft throughout the United States and Canada.

NTSB issues its Accident Report on the Colgan Air DHC-8-402 N200WQ crash

Continental Connection-Colgan Air (2nd) Bombardier DHC-8-402 (Q400) N200WQ (msn 4200) DCA (crashed February 12, 2009), originally uploaded by Airliners Gallery.

Colgan Air’s (Continental Connection) (Manassas) captain of Colgan Air flight 3407 “inappropriately responded to the activation of the stick shaker, which led to an aerodynamic stall from which the airplane did not recover.” according to the National Transportation Safety Board (NTSB).

According to the NTSB; “On February 12, 2009, a Colgan Air, Inc., Bombardier DHC-8-400, (actually a DHC-8-402) registered N200WQ (msn 4200), operating as Continental Connection flight CO 3407, was on an instrument approach to Buffalo-Niagara International Airport, Buffalo, New York, when it crashed into a residence in Clarence Center, New York, about 5 nautical miles northeast of the airport. The 2 pilots, 2 flight attendants, and 45 passengers aboard the airplane were killed, one person on the ground was killed, and the airplane was destroyed by impact forces and a postcrash fire. The flight was a 14 Code of Federal Regulations (CFR) Part 121 scheduled passenger flight from Newark, New Jersey. Night visual meteorological conditions prevailed at the time of the accident.

The report states that, when the stick shaker activated to warn the flight crew of an impending aerodynamic stall, the captain should have responded correctly to the situation by pushing forward on the control column. However, the captain inappropriately pulled aft on the control column and placed the airplane into an accelerated aerodynamic stall.

Contributing to the cause of the accident were the Crewmembers’ failure to recognize the position of the low-speed cue on their flight displays, which indicated that the stick shaker was about to activate, and their failure to adhere to sterile cockpit procedures. Other contributing factors were the captain’s failure to effectively manage the flight and Colgan Air’s inadequate procedures for airspeed selection and management during approaches in icing conditions.”

Copyright Photo: Brian McDonough. N200WQ is pictured on approach to Washington (Reagan National) before the tragic accident.

Colgan Air to bring the Bombardier DHC-8-400 (Q400) type to the Houston hub

Please click on the AG icon for a direct link to the Colgan Air photo gallery.

Colgan Air (2nd) (Continental Connection) (Manassas) has applied to operate the Houston (Bush Intercontinental)-Monterrey (Mexico) route for Continental Airlines. This will bring the DHC-8-400 (Q400) type to the IAH hub.

Filing information:

www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480a6d128

Colgan Air and pilots to begin negotiations

Copyright Photo: Brian McDonough. Please click on photo for more photos.

Colgan Air (2nd) (subsidiary of Pinnacle Airlines Corporation) (Manassas) and its pilots, represented by ALPA, will begin contract negotiations on September 23.

News link:

finance.yahoo.com/news/Colgan-Air-Pilots-and-bw-1336490399.html?x=0&.v=1

Republic Airways to acquire Frontier Airlines

Please click on photo for full view, information and other Frontier photos.

Republic Airways Holdings (Indianapolis) has agreed to be the equity sponsor of Frontier Airlines’ (2nd) (Denver) plan of reorganization. The plan, which is subject to bankruptcy court approval and various conditions, would allow Republic to purchase 100 percent of the equity in the reorganized company for $108.75 million. If approved and completed, the plan will result in Frontier’s successful exit from Chapter 11, at which point it would become a wholly owned subsidiary of Republic Airways, along with Chautauqua Airlines, Republic Airlines and Shuttle America. The acquisition also includes Frontier’s Lynx Aviation subsidiary.

This announcement raises several possible scenarios if this acquisition is approved by the bankruptcy court.

1. Lynx Aviation is likely to be merged into Colgan Air (2nd).

2. Republic Airlines’ (2nd) Embraer ERJ 170s are likely to return to the Denver hub (and possibly other regional aircraft operated by Chautauqua Airlines).

3. A possible merger between Frontier Airlines and Midwest Airlines (which Republic has an interest).

One thing is guaranteed, there will be changes in Denver.