here is a little more information.

Delta Connection Agreement
On April 27, 2007, the Company entered into an agreement with Delta Air Lines to operate 16
CRJ-900 aircraft as a Delta Connection Carrier (the “Delta Connection Agreement”, or “DCA”).
The aircraft will be delivered between November 2007 and February 2009, with scheduled
service expected to begin in December 2007. The term of the DCA is ten years. Pursuant to the
DCA, Delta will assign 16 delivery positions to the Company under Delta’s purchase agreement
with the aircraft manufacturer. Delta also has the option to require the Company to purchase an
additional seven CRJ-900 aircraft to be operated under the DCA. The Company expects that its
Pinnacle subsidiary (the “Operator”) will operate the CRJ-900 aircraft under the DCA.
The DCA provides for Delta to pay pre-set rates to the Operator based on the capacity provided
to Delta. The Operator will be responsible for the costs of flight crews, maintenance, dispatch,
aircraft ownership and general and administrative costs. In addition, Delta will reimburse the
Operator for certain pass-through costs, including landing fees, most station-related costs and
aircraft hull and general liability insurance. In most instances, Delta will provide fuel and
ground handling services to the Operator free of charge. The Operator will earn incentive
payments (calculated as a percentage of the payments received from Delta) if the Operator meets
certain performance targets. The DCA also provides for reimbursements to Delta annually to the
extent that the Operator’s actual pre-tax margin on its Delta Connection operations exceeds
certain thresholds.
The Company expects that its EBITDAR from its Delta Connection operations will average
between $2.4 million and $2.8 million per aircraft per annum. Similar to the Company’s CPA
with Continental, the Company will likely record most revenue earned under the DCA using
uniform rates, while expenses will vary significantly from period to period. The Company’s
actual financial results are dependent on both the Operator’s operating performance and its
ability to contain its costs within the preset rates provided for in the DCA. The Company’s
actual financial results could materially differ from the estimates contained herein.