Originally Posted by
LostInPA
Not too sure about that....
According to some older Pinnacle financials:
2007 annual report shows Colgan with a $4.5 million operating loss in 2007.
Also, 10-K for 2008 showed a $7.9 operating loss for 2008.
All of this was available at Pinnacle's Investor Relations site at
Welcome to Pinnacle Airlines Corp. - Investor Relations - Annual Reports
My point being, even with the lesser labor costs of the previous contract and lower fuel costs the operation still lost money.
You are correct. People just assume that Colgan made money because they flew props at low wages. The flip side is with $100+ oil, half full planes, plus major mx costs, it is hard to not lose money.