Originally Posted by PurdueFlyer

Pinnacle doesn't need to declare bankruptcy. They are going through a bunch of ONE time costs associated with this mega merger. Notably training AND millions in bonuses paid to departing executives.

Is your airline operationally profitable? Yes I believe it is. What has happened is Pinnacle isn't making as much profits as it has in the past and that will upset Wall Street since they always want increasing profits. The only way increasing profits will happen for a regional now is through cutting costs and the only real easily controllable cost is labor. They can try and renegotiate some leases but labor is and always has been the easiest target.

Don't give in to them because in two maybe three quarters time Pinnacle will be net profitable again regardless of your concessions. You just spent 10 years fighting for this contract, don't roll over now.

Every merger goes through these one time costs of integration. Delta/Northwest did and United/Continental is right now. Hundreds of millions of dollars are spent on these one time costs the difference for a company like United is that they are also generating more revenue which they can point out to Wall Street and say, "Yes our costs are high right now due to the merger expenses but our revenues have also grown."

Pinnacle doesn't have that luxury since it's revenues come from FFD contracts. There is no growth opportunity outside of securing more flying.

Sean Menke is trying to protect his job right now but in reality your company will be fine with in a year after the merger sorts itself out. Let Menke sweat it out with Wall Street, don't take money out of your pockets to make his job easier. Make him earn the ridiculous bonus he will likely reward himself when this is all done with.