Pinnacles 1113 Motion is unsealed...
 

And the verdict is.....DENIED

Docket Search

Its number 801

Maybe I can't read, but where are you seeing that it was denied?

The part that says "Accordingly, Pinnacle’s motion is denied without prejudice. If the parties cannot reach agreement with the assistance of the Court’s analysis of the issues as set forth in this Decision,4 Pinnacle can file another motion based on a revised proposal."

Is that in a document in that link somewhere? Having trouble doing much with my handy iPhone here! Haha!

Great news though!!

Just read the union email. Its out now.

So pinnacle can change some things and then refile hopefully we can just get a ta before then because the judge said they were close. I wonder how delta reacts to this ? Good news for now fingers crossed for the future

You should also note however that this decision is "without prejudice" - meaning they can file a modified 1113, and it is stated in the finding that if they do so, and address the concerns of the court, the modified filing will almost certainly be granted.

WOW. Read the quote aloud one more time for us. Does it not state exactly that?

Well, Delta's race to the bottom is forced to take a 20 second time out.... Meanwhile they are changing over their outstations from the previously 2nd round of outsourcing of Regional Elite to the 3rd round (and associated continued pay/benefit cuts) to DGS and it's already showing in the product. I really hope I don't run out of popcorn waiting for the country to wake up and have a backlash to all the outsourcing (loss of middle class)
P.S. good luck finding motivated people in Buffalo at $8 per hour to work the station.... I know a new city to put on the no bid list.

Almost broke the DOT rule for being on the ramp too long in DSM after landing because of this. Only had 2 ground people working for 4 flights within 45 minutes. Had to have more help come over from executive or millionaire or whatever the FBO is there. Unbelievable and disgraceful.

Pinnacles 1113 Motion is unsealed...
 

How soon b4 pinnacle files for ch-7. Aren't they suppose to run out of money soon?

I don't mean to troll but it seems evident that this will happen and has been the plan all along, in a matter of weeks Delta is set to announce how they will reshape their regional feed and your company said the 50 seaters was the way of the future for your company when they filled for CH11 on April fools day. Shortly after Delta passes a TA that will park an amount of 50 seaters over the next 2 years that closely resembles that of your fleet. Then your company tries to increase concessions that are impossible to comprehend. Once again airline managers show how much respect they have for us as Pilots. I wish you guys at Pinnacle the best of luck but it seems Delta is behind this and they have no desire for you guys to continue flying for them.

Delta will give Pinnacle more money to survive. I can see a wind down but not a Chapter 7. If Pinnacle go Chapter 7 there will be 180+ airplanes parked all over the place. Plus it doesn't make sense for Delta to give Pinnacle millions in April to last til now just to shut them down with out any type of wind down. Look how long it took for Comair to go away, they didn't do that overnight.

I don't think 9E is going Ch7 and here's why:

Delta did not "give" Pinnacle millions in April. Delta is providing DIP financing to pcl which is designed to help pcl get through the bankruptcy process with sufficient cash on hand to pay for the airline’s daily operations.

Its not a gift if you expect something in return, in this case DAL will expect cheaper contracts and more favorable numbers on exit from 9E.

Take that one step further and you can see that once 9E exits with a cheap-o contract the cost pressure exerted on all other DCI carriers will be increased tremendously, and there you have the reason why 9E will emerge from bk intact.

Pinnacle strikes deal with Delta to delay reorganization - Memphis Business Journal[]

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.

If the worst case scenario happens, I'd be curious to know how many guys would even go back to flying-or at least for the airlines.

Of course timelines might change things a little bit.

We could always be broken up and sold to other airlines. That looks very likely at this point.

I would think Delta would rather just sign new ASA's with other airlines using the same (9e) airplanes. So other airlines can hire the pinnacle pilots at year one pay, thus lowering the costs.

Could this be why ExpressJet(L-ASA) is hiring like mad?

They are already getting some of the 9E ATL 900's (Split b/t skywest and asa). But we will find out next month what really going to happen.

But we are losing 200s so hiring 48/mo still doesn't quite add up.

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.

If it some how saves Delta cash I wouldn't count it out..

So delta is just gonna eat the 76 mil they already gave us? Doubt it...

I'm not saying your wrong but they bought Comair for a lot more and closed them.

Close to $2 Billion I think

If they wanted to save any cash, they wouldn't have provide any finance to Pinnacle. They would just let them shut down in April or start transferring airplanes then.

When did they buy them? Wasn't it nearly a decade ago? I honestly don't know.

Couple of things here
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

I believe this is a very likely scenario, the poster makes some good points.

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