Tag Archives: Bombardier CL6002D24

Pinnacle Airlines emerges from Chapter 11 bankruptcy reorganization as a Delta subsidiary

Pinnacle Airlines (Pinnacle Airlines Corporation) (Minneapolis/St. Paul) emerged from Chapter 11 bankruptcy protection and reorganization on May 1. The airline is now a subsidiary of Delta Air Lines (Atlanta). As previously reported, Pinnacle is moving to the Minneapolis/St. Paul hub. Delta is investing $52 million in the reorganized carrier.

Pinnacle filed for Chapter 11 on April 1, 2012 in the U.S. Bankruptcy Court for the Southern District of New York.

Read the full story from the Atlanta Journal-Constitution: CLICK HERE

Copyright Photo: Bruce Drum. Pinnacle will operate a large Bombardier CRJ900 fleet for Delta (eventually 92 aircraft). The smaller 50-seat CRJ200 fleet of 140 aircraft is being gradually phased out. Bombardier CRJ900 (CL-600-2D24) N147PQ (msn 15147) arrives at the Atlanta hub.

Pinnacle Airlines Corporation logo-1

Delta Connection-Pinnacle: AG Slide Show

 

Air Mekong suspends operations today as it restructures its fleet

Air Mekong (2nd) (Phu Quoc, Vietnam) at the end of business today (February 28) suspended all operations as it restructures its fleet. The airline is planning to remove its Bombardier CRJ900s (above) and add two Airbus A321s.

Read the full story from Vietnam.net: CLICK HERE

Copyright Photo: Trevor Mulkerrins. Air Mekong leases four Bombardier CRJ900s from partner SkyWest Airlines. Air Mekong’s aircraft are painted with the image of the Sarus Crane, a precious bird in Vietnam which symbolizes peace. Former MyAir CRJ900 (CL-600-2D24) EI-DUY (msn 15112) at Shannon became VN-A804 with Air Mekong.

Air Mekong logo

Route Map:

Please click on the map for the full size view.

Please click on the map for the full size view.

The bankruptcy court approves Pinnacle’s path out of bankruptcy, Delta to invest

Pinnacle Airlines Corporation (Memphis) has announced that the comprehensive agreements it reached with Delta Air Lines (Atlanta), the Air Line Pilots Association, International (ALPA) and the Official Committee of Unsecured Creditors (Creditors’ Committee) in Pinnacle’s Chapter 11 cases have been approved by the Bankruptcy Court overseeing Pinnacle’s cases. The agreements together provide a path for the Company to emerge from bankruptcy with a competitive cost structure and a viable long-term business plan. Under Pinnacle’s new business plan, the Company will transition to operating a fleet of 81 fuel-efficient, two-class regional jets for Delta.

The comprehensive agreements include:

  • An amendment to the Company’s existing debtor-in-possession credit facility to provide Pinnacle with $30 million of additional liquidity to support its continued operation through emergence from Chapter 11 and an additional $22 million to fund certain required payments to Pinnacle’s pilots under a Bridge Agreement and related employer taxes. The amendment would also extend the maturity date for the credit facility from April 1 to May 15, 2013.
  • Amendments to the existing operating agreements with Delta that form the basis of the new business plan. Pinnacle will receive Delta Connection’s next 40 CRJ900 aircraft awarded, setting Pinnacle’s long-term fleet plan at 81 CRJ900 aircraft. The 40 additional CRJ900 aircraft deliveries are planned to begin in the fall of 2013 and are expected to be completed by year-end 2014. Pinnacle’s 140 CRJ200 aircraft will be removed from operation over the next two to three years.
  • A new collective bargaining agreement with Pinnacle’s pilots, as well as a bridge agreement that provides transitional payments, furlough benefits and specified career opportunities at Delta to Pinnacle’s pilots.
  • A restructuring support agreement among Pinnacle, Delta and the Creditors’ Committee setting forth certain principal terms for a plan of reorganization to emerge from Chapter 11. The reorganization plan will provide for Delta or an affiliate to acquire the equity in the reorganized Pinnacle Airlines Corporation after it emerges from bankruptcy. Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors’ Committee by February 15, 2013.

Copyright Photo: Bruce Drum. Bombardier CRJ900 (CL-600-2D24) N161PQ (msn 15161) arrives at the Atlanta hub.

Delta Connection-Pinnacle Airlines: AG Slide Show

Pinnacle Airlines’ pilots ratify the restructuring contract

Pinnacle Airlines’ (Delta Connection) (Memphis) pilots, represented by the Air Line Pilots Association, Int’l (ALPA), today ratified a bankruptcy restructuring contract that was tentatively agreed to in December. With more than 86 percent of eligible pilots casting ballots, 85 percent of Pinnacle pilots voted in favor of the agreement.

The new seven-year agreement includes, among other cuts, a 9 percent reduction in pay for all pilots plus longevity caps to all pay scales which will further cut the pay of more than half of Pinnacle’s pilots by as much as another 16 percent. In addition to almost 25 percent pay cuts, the deal also increases health-care costs for all pilots while reducing pilot retirement benefits by more than 50 percent for Pinnacle’s most senior pilots. In recognition of the magnitude of the pilots’ concessions, the contract also includes a bridge agreement that provides a one-time longevity transition payment and guaranteed hiring for many Pinnacle pilots at Delta Air Lines. Pinnacle Airlines flies exclusively as a Delta Connection carrier and Delta will likely own Pinnacle as a result of having provided the financing that allowed Pinnacle to reorganize.

“Management failures are responsible for Pinnacle’s current financial crisis,” Capt. Wychor added, “but only this sacrifice by the pilots could preserve a future for the airline and its employees. In that future, we will seek out new employment opportunities for our pilots who no longer see a viable career path at Pinnacle while we protect and shore up the restructured contract for those who remain.”

The pilot-ratified contract will now be submitted to the Bankruptcy Court for the Southern District of New York for final approval.

Copyright Photo: Bruce Drum. Bombardier CRJ900 (CL-600-2D24) N146PQ 9msn 15146) of Pinnacle Airlines arrives at the Atlanta hub.

Delta Connection-Pinnacle Airlines: AG Slide Show

Estonian Air and its pilots agree to a new contract, adverting a strike

Estonian Air (Tallinn) is moving ahead with its restructuring plan. The airline and its pilots have agreed to a new Collective Agreement. The pilots were threatening to strike the company yesterday and the negotiations and now a new contract adverted the strike. However the flag carrier faces major challenges for survival.

The struggling carrier has not made any money since 2006. The airline is downsizing and will rally around a fleet of just Bombardier CRJ900s for the next summer season operating on its most profitable routes.

The airline issued the following statement:

Estonian Air and Estonian Pilots Trade Association (ELA) signed a Collective Agreement which has been confirmed by the Supervisory Board of Estonian Air which had its regular meeting today. The Collective Agreement is valid up till January 31, 2014.

“The company has signed the Collective Agreement with ELA and from now on the management can carry on the implementation of Estonian Air restructuring,” commented Erkki Raasuke, the Chairman of Estonian Air Supervisory Council.

“After signing the Agreement, Estonian Air is able to focus on its daily operations on passenger servicing,” said Jan Palmér, the CEO of Estonian Air. “Today we can assure to our customers that all Estonian Air flights are operated according to the schedule.“

According to Rauno Menning, the Chairman of the Pilots Trade Association, an agreement has been achieved regarding rest and duty times. “The Collective Agreement will ensure the industrial peace inside the company,” added Menning.

The Collective Agreement is regulating duty and rest time, working conditions and relations between the airline and the Trade Union.

The provisions of the new Collective Agreement signed by the Pilots Trade Association are extended to all pilots of Estonian Air. The Pilots Trade Association is uniting approximately 80 pilots, out of which 70 are working at Estonian Air.
On 13 December 2012, Estonian Air signed a Collective Agreement with Estonian Air Cabin Crew Union which is valid up till the end of 2013. The Estonian Air Cabin Crew Union is uniting approximately 80 crew members.

Read the analysis by Bloomberg: CLICK HERE

Copyright Photo: Stefan Sjogren. The aircraft of the future Estonian Air fleet will now only be the pictured CRJ900 according to Airline Route. The new Embraer E-Jets will apparently be phased out, following the same exit as the Boeings. CRJ900 (CL-600-2D24) ES-ACB (msn 15261) touches down at Stockholm (Arlanda).

Estonian Air: AG Slide Show

Delta to offer nonstop Los Angeles-Seattle/Tacoma service starting on April 8

Delta Air Lines (Atlanta) will add three daily flights between Los Angeles and Seattle/Tacoma, beginning April 8, 2013.

Delta is rapidly growing Seattle as an Asian gateway and recently received approval for new service to Shanghai for summer 2013. The airline currently offers international service to Beijing and Osaka, Japan. Delta also has an extensive codeshare agreement with Alaska Airlines in Seattle, providing customers access to more than 50 domestic markets. From Los Angeles, customers can enjoy nonstop service to destinations including Sydney and Tokyo, as well as codeshare flights with Virgin Australia to Melbourne and Brisbane.

The new service will be operated by Delta Connection carrier SkyWest Airlines (St. George) using 76-seat two-class Bombardier CRJ900 regional jets. In addition to a first class cabin, these aircraft are equipped with onboard WiFi and Delta’s snack, food for purchase and beverage offerings.

Delta currently operates the world’s largest WiFi-equipped fleet, and plans to introduce WiFi onboard international widebody aircraft in 2013.

By summer 2013, all trans-Pacific flights will feature Delta’s full flat-bed product in Business Elite. In addition, Delta is in the process of upgrading its facilities at both Los Angeles International Airport and Seattle-Tacoma International Airport as part of its ongoing $3 billion investment to improve products, services and facilities.

Delta’s three nonstop flights between Los Angeles and Seattle are scheduled as follows:

Los Angeles to Seattle

Flight Departs Arrives Service Begins
4523 8:15 a.m. 11:00 a.m. April 8, 2013
4591 3:20 p.m. 6:05 p.m. April 8, 2013
4564 9:30 p.m. 12:15 a.m. April 8, 2013

Seattle to Los Angeles

Flight Departs Arrives Service Begins
4563 6:45 a.m. 9:25 a.m. April 9, 2013
4523  11:50 a.m. 2:30 p.m. April 8, 2013
4591 6:50 p.m. 9:30 p.m. April 8, 2013

Delta Air Lines serves more than 160 million customers each year.

Copyright Photo: Michael B. Ing. SkyWest Airlines’ Bombardier CRJ900 (CL-600-2D24) N823SK (msn 15205) prepares to land at Los Angeles International Airport.

Delta Air Lines: AG Slide Show

Delta Connection-SkyWest Airlines: AG Slide Show

Pinnacle Airlines Corporation prepares to exit Chapter 11 with new agreements, will phase out its 140 CRJ200s in the next 2-3 years

Pinnacle Airline Corporation (Pinnacle Airlines) (Memphis) today issued the following statement:

Pinnacle Airlines Corporation announced today that it and its wholly owned subsidiaries have entered into comprehensive agreements that, among other things, provide a path forward for the Company to emerge from bankruptcy with a competitive cost structure and a viable long-term business plan. Under Pinnacle’s new business plan, the Company will transition its fleet to operate a fleet of 81 fuel-efficient, two-class regional jets for Delta Air Lines Inc.

The comprehensive agreements among Pinnacle, Delta, the Air Line Pilots Association, International (ALPA) and the Official Committee of Unsecured Creditors (Creditors’ Committee) in Pinnacle’s Chapter 11 cases include:

  • An amendment to the Company’s existing debtor-in-possession credit facility, to provide Pinnacle with $30 million of additional liquidity to support its continued operation through emergence from Chapter 11 and an additional $22 million to fund certain required payments to Pinnacle’s pilots under a Bridge Agreement and related employer taxes. The amendment would also extend the maturity date for the credit facility from April 1 to May 15, 2013.
  • Amendments to the existing operating agreements with Delta that form the basis of the new business plan. Pinnacle will receive Delta Connection’s next 40 Bombardier CRJ900 aircraft awarded, setting Pinnacle’s long-term fleet plan at 81 CRJ900 aircraft. The 40 additional CRJ900 aircraft deliveries are planned to begin in the fall of 2013 and are expected to be completed by year-end 2014. Pinnacle’s 140 Bombardier CRJ200 aircraft will be removed from operation over the next two to three years.
  • A Bridge Agreement that provides transitional payments, furlough benefits and specified career opportunities at Delta to Pinnacle’s pilots in conjunction with the recently negotiated letter of agreement between Pinnacle and ALPA.
  • A letter of agreement to amend Pinnacle’s collective bargaining agreement with the ALPA pilots. This letter of agreement and the Bridge Agreement are subject to ratification by the ALPA membership by Jan. 15, 2013.
  • A restructuring support agreement among Pinnacle, Delta and the Creditors’ Committee setting forth certain principal terms for a plan of reorganization to emerge from Chapter 11. The reorganization plan will provide for Delta or an affiliate to acquire the equity in the reorganized Pinnacle Airlines Corp. after it emerges from bankruptcy. Pinnacle must file a plan of reorganization acceptable to Delta and the Creditors’ Committee by February 15, 2013.

Pinnacle filed motions with the Bankruptcy Court seeking approval of the various components of the comprehensive agreements. All of the components of the comprehensive agreements are interdependent and are subject, among other things, to Court approval.

Copyright Photo: Fernandez Imaging. With the CRJ200s being retired, Pinnacle Airlines will concentrate on the larger CRJ900 in the future with its Delta Connection contract. Bombardier CRJ900 (CL-600-2D24) N176PQ (msn 15176) lands at Houston (Hobby).

Delta Connection-Pinnacle Airlines: AG Slide Show