9E 1.6m operating profit July 2012
 

http://centreforaviation.com/news/pinnacle-airlines-reports-usd16m-operating-profit-in-jul-2012-172008

Found this hidden on the internet. Why are we still in BK? And why do we need paycuts this deep? Just seems ridiculous...

Looks like they posted a loss of $2.5 million to me, associated with "reorganization" expenses AKA consulting fees.

Net profit (loss): (USD2.5 million);
That's why

So you turned a very small profit (which was actually a loss) during the most lucrative month of the year and you think there are no problems? I agree that you guys shouldn't give up a penny on your contract but with all the a/c and contracts you're dumping BK was necessary.

The only business in the world that can have more customers than they can handle and still find a way of not making a substantial profit. Even more messed up is the fact they come looking for the front-line employees to compensate for these losses in profits.

Who the crap designs a business model and maxes out their customer base yet can't make money? Don't give in to their shenanigans of needing you as the hard working employee to give up on your well deserved compensation.

You are not he problem or the solution.

They can make the books look any way they want

No they can't. A publicly held company has to answer to the SEC and share holders. Any shenanigans with the books is easily detected by the share holders and SEC and people go to jail Enron style. I doubt the people running have any reason to cook the books.

Yes they can. There are various accounting methods they can use. Pinnacle has dealt with the IRS before regarding their use of a certain method they believed was 'standard'.

You're right. They can. You can also go rob a bank and then start a forest fire.

How much are bankruptcy fees, lawyers etc. they will spend millions and take charges going forward.

Move along, nothing to see here

Exactly, that's why I always laugh when people say the airline is hiding money.

Its all about how you label your expenses. My brother is a CPA, its not illegal, but it sure does smell funny. Ever wonder why they pay millions in "consulting" fees?

Their bankruptcy lawyers are probably getting paid more than Spanjers, it's just there's no face to pin our anger.

My point is they can and DO use various accounting standards to tweak the numbers however they seem fit. Is it illegal? Not necessary.

Wow, they paid $2.5 million to bankers and lawyers in one month, all associated with CH. 11. Also paid over $2 mil in interest -- going bankrupt is pretty expensive.

8-K

That's what I'm saying. I never said anything about them hiding money. These bankruptcy's take an incredable amount of planning, and it seems it starts well before they file.

That's the only way to make money in the airline industry. So, when you kid grows up and wants to make money, tell them to go drag an airline through BK and they'll bank! Best part is, no overnights and a Mon-Fri schedule. AMR said the same thing. Hey guys, we made a profit but we went negative paying the BK attorney's fees. I guess I'll never figure that one out. I laughed when I watched the execs at YV reward themselves for getting out of BK when they were the ones that put them in that situation.

Comair posted a profit in BK (50mil for the year), but the judge still deemed fit to throw out the pilot contract in 2006.

Well its a little different...

Comair was an arm of Delta. Pinnacle is not. Yet...

WO's making profit is like me going to the ATM taking out $20 and giving it to myself and then telling myself that I made $20. It was mine to begin with.

Well aware of that, the lesson is in the fact the pilots were still forced to take a pay cut or as the judge put it "the pilots must give their share".

We agree.

filler

For the record I don't disagree with what you wrote -- just added that extra tidbit to make sure everyone really understands who was in favor of the concessionary CBA.

It is illegal if they go outside of the standards allowed by the SEC. If they are in the guidelines then the share holders are able to keep them in check regarding any shenanigans they may be attempting. It's not in the company's best interest to fudge and cook the books. If you believe it's going on at 9E then I have some good articles on Chem-Trails and Bush staging 911 that you can read.

Free markets, deregulation, and reduction of government spending don't always create profitable industries, despite what some people seem to have made a religion of in this country.

There are certain industries which are simply not profitable without consistent government support and a lack of price competition--aviation is probably one of them. I need only to refer you to the aggregate profits and losses of all airlines in the US since deregulation, the massive amounts of government spending required to support the few airlines which are "profitable," and the simple fact that almost every technology that makes modern jet transport possible is a direct result of huge amounts of government defense spending over the course of sixty years.

Free market capitalism works in a lot of industries (especially retail and non-capital-intensive industries). However, in banking, aviation, and public works, it's not something that is a simple "demand+competition=profitable industry" calculation.

At least in places like Germany they're honest about the fact that some industries need government support to survive and to create jobs--here, companies simply go in and out of bankruptcies constantly to survive, and go begging to Uncle Sam for government loans to prop themselves up anytime they're seriously in trouble--the idea that corporations would create more jobs if they were simply unleashed to compete is simply a whitewashed lie perpetrated on the American people for the last 20 or so years.

Sorry--had to rant....

Very interesting....I find myself on the conservative/free market end of the spectrum fiscally speaking. But the violently cyclical nature of the airline industry should be dampened somehow--- for safety's sake primarily, in addtion to other reasons. And shoot-a perpetually beaten workforce is how safe in the long run? (Especially pilots, dispatchers, and maintenance.)

It's Mesabatage. MSP group doing their best to run the airline out of business. Keep up the good work!

There was a much bigger picture involved. Aligning things for the NWA/Delta merger was 1, another was the effect cutting Mesaba's contract had on the overall average of the regional industry. Just as the current bankruptcy is being used to ask for a great overreaching to put us at or below Goatjets. Then they can become expendable as we become the new bottom for others' negotiations. We are being used as a weapon against the entire industry. Make no mistake Delta is pulling on several of the strings now for its interests, not ours or even Pinnacle's

What puzzles me about Delta's new regional business plan is why Goatjets is currently the new "golden child" of DCI. As a former Waterskiier (TSA) who has worked for that low-life upper management team, I directly saw some of the WORST quality regional feed you could ever imagine. I know performance is low now, it always has been always will be with the TSH group and perhaps Delta Management just hasn't had enough time to become acquainted with it yet. Put already poor performance and add a pilot shortage (I know, I know it'll never happen) and you have yourselves a performance numbers break down in your regional feed. Let's face it, you get what you pay for and Daddy Delta don't care. There's no long-term benefit in the short-term financial gains made from the race to the bottom with contracted work with ANY company that uses contractors! Just ask United! This is true mismanagement from the top and now they want us to be just like them. We'll see where that leads.

You appear to be very familiar with GAAP.

Not really. People are quick to cry book cooking without anything to back it up. Reminds me of conspiracy theory.

Was that the fuhrer Mel Gibson?