Tag Archives: Pinnacle Airlines Corporation

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 reaches a tentative agreement with ALPA

Delta Connection-Pinnacle Airlines Bombardier CRJ900 (CL-600-2D24) N146PQ (msn 15146) ATL (Jay Selman), originally uploaded by Airliners Gallery.

Pinnacle Airlines Corporation (Memphis) announced on December 17, 2010 that it had reached a tentative agreement with the Air Line Pilots Association, International (ALPA) on a single contract covering pilots at all three of Pinnacle’s operating subsidiaries — Pinnacle Airlines, Inc., Colgan Air, Inc. and Mesaba Aviation, Inc.

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.

Delta agrees to sell Mesaba Airlines to Pinnacle Airlines

Delta Connection-Mesaba Airlines SAAB 340B N453XJ (msn 453) MSP (Bruce Drum), originally uploaded by Airliners Gallery.

Delta Air Lines (Atlanta) today (July 1) also announced it has entered into a definitive agreement to sell is wholly owned regional airline subsidiary Mesaba Airlines (Mesaba Aviation) (Minneapolis/St. Paul) to Pinnacle Airlines Corporation (Pinnacle Airlines) (Memphis) for $62 million.

Mesaba, like Compass Airlines, will continue to serve Delta as a Delta Connection carrier with a long-term, extendable agreement, ranging from seven to 12 years depending on aircraft type. Compass will continue to be headquartered in Minneapolis/St. Paul.

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.