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Airline, pilots failed to agree on labor contract
By Jane Roberts
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April 27, 2007
Pinnacle Airlines will lose more than 12 percent of its fleet because it did not get a deal with its pilots in time.
Starting in September, Northwest Airlines will take back two aircraft a month, presumably turning them over to Mesaba Airlines, which Northwest formally acquired Tuesday when the regional airliner emerged from bankruptcy.


"I'm certainly not happy about this, but our people run a great airline," said Phil Trenary, Pinnacle president and chief executive. "That's why I am confident we'll get another customer with larger aircraft."
Until late in December when Pinnacle signed a new deal with Northwest, it had been flying solely as a regional carrier for Northwest, shuttling passengers between hubs and serving markets that were more profitable for Northwest flown on Pinnacle's 50-seat regional jets.

The deal let it seek other customers. It also gave Pinnacle 17 additional 50-seat regional jets, with the stipulation that Northwest could take them back if Pinnacle and its pilots did not have a deal by March 31.

"Northwest made a threat; now they have to carry through on it," said George Hamlin, principal at Hamlin Transportation Consulting outside Washington. "Northwest won. Both the others lost. Pinnacle won't be as big and therefore will not have as many opportunities for pilots."

Because the planes were not committed to Pinnacle on a long-term basis, Pinnacle is entitled to the full amount of its unsecured $42.5 million claim in bankruptcy proceedings.

It plans to quickly sell it and apply the proceeds to the bottom line.

The company and its pilots -- some of the lowest-paid entry-level pilots in the nation -- have been negotiating since February 2005 and in mediation since September.

"We had made great progress as of noon on March 30," Trenary said. " ... I was real surprised when it didn't happen."

He doesn't expect layoffs.

"At our attrition rates, there won't have to be any layoffs," said Wakefield Gordon, chairman of the Air Line Pilots Association master executive council at Pinnacle. "We're pre-canceling thousands of hours of flying because we don't have the staff to fly them."

When Northwest announced its bankruptcy in September 2005, it grounded 15 Pinnacle planes, reducing Pinnacle's quarterly revenue projections by 7 percent and forcing it to seek voluntary furloughs.



Ok, first off i will chime in and say that I am not suprised with the announcement. I will also say that i am not putting much stock in a ANOTHER deadline that is 5 months away. Like you guys said it seems like there is a lot of stuff happening behind the curtains and it will only be a matter of time for it to come out.

I think i can say that almost every pinnacle pilot doesn't care about these 17 planes. like it says we have been pre cancelling hundreds of flights because we don't have the staff for it. Management wanted the money, and they wanted it now. I saw a note in the mem ops saying that we shouldn't worry and that we will secure more larger aircraft flying that will more than make up the flying we are losing.. all i can say is we better have a contract by then, or there wont be anyone to fly those planes either. Pinnacle pilots will not settle for a sub-standard contract to get more flying.