Pinnacles 1113 Motion is unsealed...
11-17-2012 | 09:26 AM
#21
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From: CORP
11-17-2012 | 09:58 AM
#23
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I don't know what the numbers of new hires are like at XJet but lets say you are hiring like crazy at 48/month like you say. It takes 2-3 months to get done with training, then what? There hasn't been any announcement of who is going to fly what. If Delta has some airplanes on order then I can see why it would make sense. If Delta wants to get rid of Pinnacle's 200s. It would make more sense to just let them operate it and wind it down. There's no point to transfer them to XJet and get rid of them in the next year or 2.
11-17-2012 | 11:57 AM
#28
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11-17-2012 | 12:04 PM
#30
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This is good from a labor standpoint, that at least the judge didn't immediately screw you guys. It's incredibly bad in all other ways.
I am very sad to see that regional pilots have been made a 'commodity' and that experience is not valued in any way.
The 'best' case (for survival anyway) is that the company and union can reach an agreement or fix the three items they got dinged on and resubmit a proposal which the court said would almost certainly be approved. Only then MIGHT Delta continue to finance them. That would still have to happen for a period of time. Delta stated that they had no interest in providing additional financing to Pinnacle unless the labor costs were brought down. Even the concessions, if they are reached, might not satisfy Delta in this respect.
The 'second best' would be a controlled wind down. I don't think it would take as long as Comair or anything close to it. Months, maybe.
Then, Chapter 7. As someone earlier mentioned, that would leave planes and routes in disarray and is pretty unlikely as a means of initial dissoulution, but overall not impossible.
In my opinion, it looks like this is it for 9E. Their lack of liquidity was described by the judge as 'severe' and 'acute'. Delta is all they've got. According to the opinion, Delta included several clauses in their DIP agreement with Pinnacle that would immediately cancel the responsibilities of Delta and cause all money to be immediately due back to them. One of these clauses is that Pinnacle must have more than 25 million in liquid assets on the last day of each month. Considering that, as well as the various performance metrics imposed by the ASAs that will be infinitely harder to meet as the airline continues to lose staff and morale (low before and non-existent now), it's clear that Delta has a strangle-hold on Pinnacle. There are quite a few landmines for 9E to step on if Delta doesn't get their way.
I am proud of you guys for holding on and not taking their final offer. It was clearly over and above what they need to survive. Hopefully you will be able to work out something that at least allows some reflection of your hard work and dedication. Good luck.
I am very sad to see that regional pilots have been made a 'commodity' and that experience is not valued in any way.
The 'best' case (for survival anyway) is that the company and union can reach an agreement or fix the three items they got dinged on and resubmit a proposal which the court said would almost certainly be approved. Only then MIGHT Delta continue to finance them. That would still have to happen for a period of time. Delta stated that they had no interest in providing additional financing to Pinnacle unless the labor costs were brought down. Even the concessions, if they are reached, might not satisfy Delta in this respect.
The 'second best' would be a controlled wind down. I don't think it would take as long as Comair or anything close to it. Months, maybe.
Then, Chapter 7. As someone earlier mentioned, that would leave planes and routes in disarray and is pretty unlikely as a means of initial dissoulution, but overall not impossible.
In my opinion, it looks like this is it for 9E. Their lack of liquidity was described by the judge as 'severe' and 'acute'. Delta is all they've got. According to the opinion, Delta included several clauses in their DIP agreement with Pinnacle that would immediately cancel the responsibilities of Delta and cause all money to be immediately due back to them. One of these clauses is that Pinnacle must have more than 25 million in liquid assets on the last day of each month. Considering that, as well as the various performance metrics imposed by the ASAs that will be infinitely harder to meet as the airline continues to lose staff and morale (low before and non-existent now), it's clear that Delta has a strangle-hold on Pinnacle. There are quite a few landmines for 9E to step on if Delta doesn't get their way.
I am proud of you guys for holding on and not taking their final offer. It was clearly over and above what they need to survive. Hopefully you will be able to work out something that at least allows some reflection of your hard work and dedication. Good luck.
1) 9e isn't going to liquidate. I would bet my job on it
2) Delta/NWA has never allowed us to fly for other carriers for the reason of being able to manipulate us however they see fit. Do you really think it was a coincidence we were back to only Delta contracts within a year of Mesaba being mixed in?
It is easy to create a liquidity crisis when you are the one paying the bills. Even if they imposed the contract today, would it solve the crisis? Absolutely not!
3) Why would they give all our airplanes to Expressjet? (Who's contract is similar to 9e) They just spent $30 million destroying our contract (and let's face it, that mission is almost complete.)
4) This is more like the first offer, not last.
They will get permission to impose early December. In January (after x-mas) Delta will tell us we are losing x number of 200's (My personal guess is 100) We come to a horrible compromise and become the 2nd lowest paid regional. (thanks go jets) Magically, we get awarded 70 seaters.
The end!
Still a crappy future, but it's not liquidation
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