Colgan Air (2nd) (Memphis) is now in the history file. The airline has operated its last revenue flight. As planned, Colgan Air operated its last flight, flight UA 3923, from Washington (Dulles) to Albany, NY as an United Express carrier on September 5.
Copyright Photo: Brian McDonough. Bombardier DHC-8-402 (Q400) N34NG (msn 4340) climbs away from the Dulles hub.
Colgan Air (2nd) (Memphis) has its share of problems. First the company is going out of business on September 5. Adding to this problem, yesterday (August 10) a Lufthansa Airbus A330-343X registered as D-AIKE clipped the tail of Colgan Air’s Bombardier DHC-8-402 (Q400) N341NG operating as flight UA 3912 for United Express from Pittsburgh to Washington (Dulles). After landing at Dulles and during the taxi to the gate at Dulles International Airport (IAD) the incident happened. There were no injuries.
Colgan Air (2nd) (Memphis) is planning to cut 95 jobs at Houston (Bush Intercontinental) according to this report by CBS News and the Associated Press as the company phases out flying as an United Express carrier. Colgan is expected to end UA operations around August 1.
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 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.
Republic Airways Holdings Inc. (Indianapolis) has announced that its Republic Airlines (2nd) (Indianapolis) subsidiary has reached a tentative agreement to operate 32 Bombardier DHC-8-402 (Q400) aircraft under the United Express brand. The Capacity Purchase Agreement (CPA) is expected to become effective in the third quarter of 2012 and continue for approximately eight (8) years. The tentative agreement includes 28 aircraft currently in operation at Colgan Air (2nd) (Memphis) and four aircraft currently operated by Republic in its brand division. This effectively ends the former Lynx Aviation (Denver) operation (see below) for Frontier Airlines (2nd) (Denver). Republic Airlines took over the Lynx Aviation operation on March 19, 2011. Will the four Q400s now be operated in Denver for United?
The agreement with Republic is contingent on completing negotiations and reaching binding agreements with aircraft lessors and maintenance providers, which is expected to occur during the second quarter of 2012.
Top Copyright Photo: Brian McDonough. Colgan Air is getting out of the airline business and will no longer operate its 28 Q400s for United. The SAAB 340Bs are also being phased out. Luckily for Republic, the aircraft are already painted.
Bottom Copyright Photo: TMK Photography. This announcement also ends the former Lynx Aviation operation (now operated as Republic Airlines 2nd) which currently operates the four Bombardier DHC-8-402s (Q400s) for Frontier Airlines from the Denver hub to the close-in cities of Aspen, Colorado Springs and Durango.
Pinacle Airlines Corporation (Memphis), currently reorganizing under Chapter 11 bankruptcy protection, is planning to shed around 450 pilot positions over the next 18 months. The group intends to also shed 97 Bombardier DHC-8-402 (Q400), SAAB 340B and Bombardier CRJ900 aircraft as it adjusts its contracts. Colgan Air will also be closed down by November 2012. The United Express and US Airways Express operations will also be terminated under the current reorganization proposals.
Read the full report from Memphis Business Journal: CLICK HERE
Copyright Photo: Tony Storck. The current Colgan Air operates for United Express and US Airways Express
Pinnacle Airlines Corporation (Memphis) yesterday (April 1-not an April Fool’s Day joke) announced that the Company and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York (the “Court”). Pinnacle intends to use the Chapter 11 process to continue implementing a comprehensive turnaround plan aimed at addressing its operational and financial challenges in a rapidly evolving regional airline industry.
According to the company, “During this process, the company will remain focused on providing passengers with safe, reliable and timely service in collaboration with its network partners, Delta Connection, United Express and US Airways Express.”
Pinnacle expects to accomplish several key initiatives during the restructuring process to help ensure that it returns to profitability and remains viable over the long term as the regional airline industry continues to contract and transform. These initiatives include restructuring its key operating agreements with Delta Air Lines, winding down its operations with United Airlines, completing the wind-down of its Essential Air Service (EAS) flying with US Airways, achieving cost savings from its workforce, identifying additional opportunities across the organization to reduce costs, and ensuring that it has the appropriate fleet, staffing levels and network to operate profitably on an ongoing basis.
Sean Menke (formerly the CEO of Frontier Airlines), President and CEO of Pinnacle, said, “We intend to use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term. Quite simply, our current business model is not sustainable, as increasing operating expenses, liquidity constraints, business integration delays and difficulties associated with combining our operations have hindered our ability to maximize our growth potential. Following a lengthy review process, and with the assistance of independent financial, industry and legal advisors, our Board of Directors determined that a court-supervised restructuring is the only feasible course of action to implement our turnaround plan.”
Menke continued, “We are committed to delivering safe, reliable travel throughout this process, and thank all of our employees for their continued focus on providing our mainline partners and their customers with on-time flights and superior in-flight service. Our objective is to emerge from this process as a stronger, more focused company, with a revised business model, a substantially improved cost structure and operating agreements that will position us for profitable growth in the future.”
In conjunction with the filing, Pinnacle has received a commitment for secured super-priority debtor-in-possession financing (“DIP Financing”) from Delta Air Lines, Inc. in the amount of $74.3 million. Following Court approval, $44.3 million will be used by Pinnacle to repay a secured promissory note held by Delta. The remaining $30 million in DIP financing, combined with cash generated by Pinnacle’s ongoing operations, will be available to help ensure that Pinnacle has sufficient liquidity to meet its operational and restructuring needs.
Pinnacle has filed a series of customary motions with the Court seeking to ensure the continuation of normal operations, including requesting Court approval to continue to pay employee wages, salaries and benefits without interruption and to pay suppliers for fuel and other goods and services provided after the filing date.
Pinnacle noted that it previously filed withdrawal notices with the U.S. Department of Transportation (DOT) for all of the Essential Air Service (EAS) markets currently served by Colgan Air, a Pinnacle subsidiary. Pinnacle has asked the DOT to establish an accelerated process to identify replacement carriers for the EAS markets it serves, which are currently served by SAAB 340B aircraft.
The remaining SAAB 340B fleet that Colgan operates for United Express will be wound down over the next several months, with these operations projected to end by August 1, 2012. Similarly, Colgan’s Bombardier DHC-8-402 (Q400) aircraft operations will be wound down by November 30, 2012 (see below).
Pinnacle Airlines Corporation is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corporation operating subsidiaries operate 199 regional jets and 62 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize.
Houston Mayor Annise Parker and the Houston Airport System, in partnership with United Continental Holdings, Inc. (Chicago), yesterday broke ground on the first phase of a three-phase redevelopment project at George Bush Intercontinental Airport. Phase one of the project, to be completed in 2013, will create a new Terminal B south concourse dedicated to regional jet operations.
The $160 million south concourse project will replace the existing south side flight stations with a new 225,000 square-foot facility to accommodate United’s regional aircraft. At nearly four times the size of the existing space, the new concourse will provide a better customer experience, as it will feature modern and expanded gate lounge areas, concessions and restroom facilities.
Travelers will access the new concourse from the terminal via a 95-foot-wide bridge with 13,000 square feet of food, beverage and retail concessions – a 500-percent increase in concession space over the current facility. The concourse will feature 28-foot-high floor-to-ceiling glass windows, offering expansive tarmac views from spacious central passenger lounge areas with durable and modern interior finishes.
Plans for future phases of the $1 billion redevelopment project include redevelopment of the central Terminal B lobby and baggage claim areas, a new international-capable north concourse for mainline and regional jets, a new Terminal B Federal Inspections Services (FIS) facility and infrastructure improvements.
The entire three-phase redevelopment project is planned over the next seven to 10 years, based on demand.
The project’s design incorporates energy-efficient techniques using Leadership in Energy and Environmental Design (LEED) criteria.
Copyright Photo: Mark Durbin. Please click on the photo for additional information.
Pinnacle Airlines Corporation (Memphis) has announced it will be discontinuing most of its operations in Boston, including service to Plattsburgh and other northeast airports operated for US Airways Express by Colgan Air’s SAAB 340Bs.
According to the airline, Pinnacle is notifying the U.S. Department of Transportation (DOT) this week of its need to relinquish its various Essential Air Service (EAS) contracts linked to Boston.