Pinnacle buys Colgan?
 

The rumors are out there...anyone else heard this?

Well we were just talking about that on the other Colgan thread and no one seemed to think it was possible.

its all over FI. I never would have thought it to be true, but stranger things have happened. The company was sold once before. I guess we will find out in the conference call today

Supposedly there is a conference call today at Colgan about it...any Colgan guys out there know about this?

wow dingo...that was quick...you beat me to the punch. do you plan on enlightening us with the contents of the conference call?

Wow
 

Considering Chuck Colgan told the Washington Post that selling the then Colgan Airways to Presidential Airways was "The biggest mistake of my life."

I'll believe it when I see it, can't listen on the conference call I'm flying. Big deal, if we get bought we get bought..hopefully we get better pay and QOL. Not to mention a chance to move into the RJ.

You just watch, if PCL buys them Chuck will be on the phone getting new airplanes to try to do it again from scratch. They have no reason to sell.

colgan has a conference call every thurs. Thats old news. IF colgan gets bought, the pilots will prob get screwed and put to the bottom of the list as per the mohawk-alleghany agreement. I never thought that the colgans would sell either. He did it once and had to buy it back to save it. This rumor has spread faster that herpes in a thai *****house. We will see what is said in the conference call.

When you find out post right away, like I said I'm flying and I want to know as soon as I get to Tyler.

its true. the memo is on the colgan crew web site

Its true
 

News Release
Pinnacle Airlines Corp. Announces Purchase of Colgan Air, Inc.
MEMPHIS, TN, Jan 18, 2007 (MARKET WIRE via COMTEX News Network) -- Pinnacle Airlines Corp. (NASDAQ: PNCL) today announced the purchase of Colgan Air, Inc., which maintains its headquarters in Manassas, Virginia. Pinnacle Airlines Corp. is the parent company of Pinnacle Airlines, Inc., a regional airline doing business as Northwest Airlink.
Pinnacle Airlines Corp. will pay $20 million for all of the issued and outstanding capital stock of Colgan Air, with $10 million in the form of an immediate cash payment and $10 million in the form of a one-year note secured by the stock of Colgan Air. The acquisition will be completed today subject to any applicable regulatory review.

Colgan Air is a premier turbo-prop regional airline operating as Continental Connection, United Express and US Airways Express. Launched in 1991 as a family-owned and operated company, today Colgan Air offers 354 daily flights to 53 cities in 13 states. Colgan is recognized for the exceptional service levels it provides its Customers and is a leader in providing air service to small and medium-sized cities in the United States. Colgan operates 39 Saab 340 and 11 Beech 1900 regional airliners, and has hub operations in Boston, Houston, New York, Pittsburgh and Washington, D.C. Colgan Air employs approximately 1,100 People and transported nearly 1.5 million Customers in 2006. Colgan has experienced strong revenue growth over the past years. In 2005 Colgan had revenues of approximately $137 million. Colgan projects that it will have revenues of approximately $190 million in 2006.

"This is a strategic move for our organization and offers Pinnacle Airlines Corp. extraordinary opportunities by diversifying and expanding into multiple platforms," said Philip H. Trenary, President & CEO of Pinnacle Airlines Corp. "Colgan Air has a highly productive workforce with knowledge, experience and fantastic dedication."

This purchase provides Pinnacle Airlines Corp. with two separate platforms for growth.

Mr. Trenary continued, "The purchase of Colgan Air gives our corporation access to and relationships with three of the largest carriers in the United States: Continental Airlines, United Airlines and US Airways. When combined with Pinnacle Airlines, Inc.'s airline services agreement with Northwest Airlines, Pinnacle Airlines Corp. now code-shares with a significant proportion of the major airlines in the United States. These new relationships will be invaluable to helping grow both Pinnacle Airlines, Inc. and Colgan Air."

Mr. Trenary also explained that the newly expanded corporate organization will be better able to diversify fixed costs across a wider base, creating more efficiency and lowering unit operating costs at both carriers. "We believe both airlines will be more competitive in the marketplace as a result of this purchase."

Pinnacle Airlines Corp. expects that the acquisition of Colgan Air will result in a slight increase to consolidated earnings per share for the year ended December 31, 2007, with a more significant positive impact in future years as both airlines benefit from the customer relationships and economies of scale that this acquisition brings.

Mike Colgan, President & CEO of Colgan Air, will remain in his current capacity as President and CEO of Colgan Air, Inc. for the immediate future. Mr. Colgan will be an instrumental liaison between Pinnacle Airlines Corp. and Colgan Air as they create a seamless transition for the current Colgan customers.

Mr. Colgan stated, "We are very proud of Colgan Air and see this as an exciting step forward. While this was not an easy decision for our family, we considered the strength of Pinnacle Airlines Corp. and its management team as an opportunity to continue the growth of the company in an ever-evolving industry. The employees of Colgan Air are more than just employees here -- they are family. Collectively, the entire Colgan Air Family, along with our customers, has made this possible. The management team of Pinnacle Airlines Corp. has been long-time friends and industry colleagues; I join them in welcoming everyone to this new and exciting venture."

Phil Trenary added, "Colgan Air is a family-centric organization with a positive attitude and an excellent team of service focused professionals. This makes Colgan an excellent cultural fit with our company and our People. Additionally, we are pleased that several members of the Colgan family will continue to work with us through the transition and into the future."

Pinnacle Airlines, Inc. and Colgan Air will operate as two separate entities with independent and separate management structures. Pinnacle Airlines Corp. and Pinnacle Airlines, Inc. will remain at the current headquarters in Memphis, TN. Colgan Air will maintain its operational headquarters in Manassas, VA, provided it continues to make operational and financial sense for the organization.

Pinnacle Airlines Corp., an airline holding company, is the parent company of Pinnacle Airlines, Inc. and Colgan Air, Inc. Pinnacle Airlines, Inc. operates under the name Northwest Airlink and operates 127 Canadair Regional Jets in the United States and Canada. Colgan Air, Inc. operates as Continental Connection, United Express and US Airways Express. Colgan Air operates a fleet of 39 Saab 340 and 11 Beech 1900 turbo-prop regional airliners.

Safe Harbor

This press release contains various forward-looking statements that are based on management's beliefs, as well as assumptions made by and information currently available to management. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including those set forth in our filings with the Securities and Exchange Commission, which are available to investors at our web-site or on line from the Commission. Should one of more of these risks or uncertainties materialize, or should underlying assumptions prove erroneous, actual results may vary materially from results that were anticipated or projected. The Company does not intend to update these forward-looking statements before its next required filing with the Securities and Exchange Commission.

For further information, please contact:

Philip Reed
Telephone: 901.348.4257
E-mail: Contact via http://www.marketwire.com/mw/emailpr...3EAAF7C6126F59


SOURCE: Pinnacle Airlines Corp.

$20M for 39 planes that sell for over a million each seems kind of lean to me. They must have some MASSIVE debt to be assumed, too.

Well, who's for signing a union card and getting the pilot groups together?!

http://news.moneycentral.msn.com/tic...Symbol=US:PNCL

I hate to say it but,, I TOLD YOU GUYS... read back a few post and you all were laughing at me saying it could never happen. I knew it was in the works,,, apperantly they were for sale. I don't hate all you haters out there, just Next time just listen to me,, i don't post stuff just to start rumors, i post what i hear from reliable sources, and what i honestly feel is going to happen.

I can't believe it, whats gonna happen, damn I cant beleive it, glad I left to go to Express ;)

brotha, u either left at the best possible time or the worst. We wont know for a bit. How's EWR?

Well, I said it on that post, and will restate it here. I apologize, you were right. I have just been infused with a healthy dose of skepticism from all the crap rumors that I hear posted and stated in the cockpit as fact. And this one was especially unbelievable. But, it proved true.

I'm still shocked the Colgans would sell themselves out of jobs so cheaply.

..and what's in it for Pinnacle?

ummm, how 'bout not having a non-union sister company stealing your flying for sub-par wages and undermining your every demand at each contract negotiation? :rolleyes:

I really shouldn't take a rocket scientist to see that we both have a vested interest in not being pitted against one another.

dont worry i wont hate. As far as whats in it for pinnacle,, like i said earlier,, if they don't become union it will be a good WHIPSAW. whats nice is in our current contract we have scope protection for all flying done by PINNACLE CORP. so that means, they are probably in violation of our contract. It says all flying, present or future, done by PINNACLE CORP will be done by PINNACLE AIRLINES pilots. note the key words there, we have the protection already so it will be tough to whipsaw, but none the less,, owning a nonunion and union airline is just asking for trouble.

Why is it so hard to belive? They just sold for 20million! They can take that 20 million, spread it out over some CD's @ 5.75% and sit in the Caribbean in their new beach house sippin on some mixed drinks. Looks like a good deal for them!

EWR is awesome, I gotta say Colgan guys are used to subpar wages and work rules so I am sure Pinnacle isnt going to treat them any different.

I was at Colgan for 9 months, I have personally experienced the abuse, Kepp ya heads up ;)

it could be real good for colgan in the short term. Colgan needs more planes to take the new flying being thrown at them everyday. PCL has saabs that colgan can use NOW. Thats 10 more saabs that colgan can put to use quick. The thing that was holding colgan back was the cash. Now they have it. I agree with airsupport, I'd expect to see some bigger t-props in the future.

THere is 2 reasons why i see pcl did this. the first would be the more honest reason. Colgan is making money, and the have the niche t-prop cornered right now. Pcl holdings can make colgan more effecient and help them grow, which colgan couldnt do on it's own. They take the money that colgan is earning and spread it between the 2 companies to help both grow.

That would be the honest thing to do.

The second reason would be to whipsaw the pcl pilots at contract time. Both may happen. Neither may happen. Who knows! I never thought this would happen in the first place. I'd bet that colgan will be adding 5-10 planes or even more in the next 6 months. thats my 2 cents, but i'm already down a case of beer!

Smells like MESABA and Big Sky.

not really. the key here is that colgan has no jets,, so for them to get jets on the certificate would be a big deal. not saying it wont happen but i think colgan will get more props, and bigger props, and pncl will just get more jets. the difference is we have scope already saying any new flying must be done by pinnacle airlines pilots. we were smart enough to put in the last conctract that Pinnacle airlines pilots will do all present and future flying for Pinnacle INC. thats some pretty solid scope protection,,, now are they going to try and find a way around it... YOU BETCHA!!

If it's Inc., you might be screwed. "INC." is the Airline.
"Corp" is the, well, corporation.
Also, they are keeping them separate (for now), so they can do any flying they can get there hands on.

That's why we need a combined union. To keep them from whipsawing the PCL contract by threatening to bid all new contracts through Colgan b/c our rules are worse and pay scales cheaper.

One company, one union.

The TSA pilots built that exact phrase into their contract, and that didn't slow down management from creating GoJets. That little bit of scope cannot protect you.

theirs was actually a little different. but the same still applies, i have even heard already that grievences are already in the works. our scope says it in as plain english as it gets. any flying done for pinnacle holdings will be done by pinnacle airlines pilots.

as far as the grievance thing goes, I filed 4 in the past 2 years on black and white contract issues that I should have clearly won. Guess what, I have not heard a g dam thing. These pigs will do whatever the hell they want and you know it.

We lease several of our aircraft. I've never seen any dollar amount for Colgan's assets. But I did hear it's just a controlling percentage - not the whole thing.

I'll be waiting for that union card in the mail!!

remember that when it comes to grievences, sections 1 and 2 get immediate action by alpa lawyers.

"...the key here is that colgan has no jets..."
Big Sky doesn't have jets. We did and will again.

"...the difference is we have scope already saying any new flying
must be done by pinnacle airlines pilots..."
Mair's agreement with us was for all new flying over 19 seat was to be ours.

Smells like Mesaba and Big Sky!:)

If your talking about ALPA, dream on. ALPA is no differant than anyone else, the membership that has the most money wins. Do you really think the Pinnacle pilots will welcome Colgan pilots into the fold regardles of union affiliation? This is assuming there will ever be an issue. At this point it's all conjecture.

What should worry you most is being run by a company like Pinnacle, there is probably a good reason Pinnacle flight crews are already unionized.

But "Colgan" pilots, are flying for "Colgan Air". They're SEPARATE That's the difference.
BTW, does Colgan/Pinnacle have overlapping routes? THAT could get UGLY!!!

...........

I am being the "Devil's Advocate". This is what thje lawyers will say if this goes that far.
Separate management, Operating Cert., etc....
(More like an "investment" that buying)

I hear what you are saying. I would be worried too. I will let the experts on pinnacles' scope clause post what it is, I am just going off of second hand info.

We don't have overlapping routes, the nw flying is already protected, and our planes can't do the kinds of routes that pcl does. THat's not how our saabs and 1900's make money. WE make money where the rj's can't, on the short haul stuff.

i don't think they have overlapping routes. its true that they will keep the companies seperate and not intertwine them. but some of the pilots here are upset because of the scope language. after reading some discussions i have come to the conclusion that there are going to be some major hurdles for the company to overcome by doing this.

Why not quite and move to another airline that does offer more pay, better QOL, and RJ's?

If that's what you need to say to convince yourself that your flying is safe. But the courts haven't exactly been very nice to unions lately. I suggest you read the TSA contract and try and determine a logical way that GoJets could've been created, because you can't.