Originally Posted by MrBojangles

Why would Delta do this:

Pinnacle agreed to waive certain reset rights that would have included higher rates to cover increasing pilot costs in agreements covering the operation of 142 Bombardier CRJ200s and 41 CRJ900s. The carrier also agreed to a modified margin covering the CRJ200 operations. Pinnacle determined the CRJ200s it operates on behalf of Delta produce profits. The carrier bears no ownership costs on those aircraft since it leases the small jets from Delta.
Delta has agreed to extend Pinnacle’s CRJ200 contract by four and a half years, which means it will be saddled with 145 50-seaters that it takes great pains to declare are uneconomical until 2022. Delta does have the right to file an unsecured claim for damages related to an early termination of the operation of the 16 CRJ900s that will span five months beginning in Jan-2013. Pinnacle had been attempting to rework that particular contract after Mr Menke, who took the helm at the carrier in Jun-2011, concluded the agreement was producing marginal economics for Pinnacle.

This took place with the DIP financing recently.