Colgan/Pinnacle Whipsaw Potential
 

http://www.aviationweek.com/aw/gener.../PINN02027.xml

Pinnacle spending money on Q400s for Colgan...

Watch out!

how is that whipsaw????? colgan wasn't broke when they were bought. they were making money hand over fist in a market that nobody else could tap. it's like equity in a house, borrow against it to make more. They aren't dangling new flying between the 2 pilot groups making them cut each others thoats to get it. New t-props fit into the colgan business model and would make more money. Instant return on investment. PCL pilots were not actively bidding on t-prop flying and saying that the planes will be bought with just pcl pilots money is bs. It's being bought with pcl pilots money and colgan pilots equity. For me, I'd much rather see the pcl pilots get the contract resolution that they deserve before any aircraft order is placed. I'm no noob, and I know what's right and what's deserved. Is it up to colgan or pcl pilots? F no. But, colgan can turn almost an instant profit with the new props, an routes they have been biddin on for years. More profit in my eyes would give more money to pcl for bigger jets in the future. Colgan would be the cash cow. But we all know that's not how mgmt thinks. THis isn't whipsaw by any means yet.

...yet is the key word. Because pinnacle can now fly for carriers other than NWA, they could operate the Q400 for airways or delta or anyone else. they can turn a profit just as fast as colgan. this could be a settling point for the contract because management is dangling this growth in front of them. sure colgan operates props, but they dont operate the dash this would be a new type. i didnt see colgan looking at ordering q400s before they were bought and i didnt see pinnacle talking about new airplanes until another carrier was brought in. hmmm....

False. This has been rumored for a year. It was only a matter of time. Now with Pinnacle we have cash an opportunity to grow without hopefully hurting the PCL pilot group.

*cough* ehhem ALPA *cough* -The only way to keep a whipsaw from not happening, especially on my end of the fence is for Colgan to join us under ALPA. I know it may be alot to ask, but 2% of a paycheck is a small insurance premium in my book.

Like I said earlier 2% from an FO's paycheck is laughable. But yes, I'm all for it.

It will be whipsaw. If you don't think so, then you clearly don't know Nonconnah Blvd like I do.


Pinnacle Holdings Corp is going to buy these Q400s for Colgan Air... with money from the new NWA ASA and the note PNCL just sold for $283 million, all the while telling Pinnacle Airline pilots, "Hey! We can't afford to pay you under your offer of a contract!" And that of course comes after Pinnacle Holdings paid out $20 million to buy Colgan.

And come on. Phil Trenary himself said during a phone conference regarding the Colgan buyout, that he doesn't see any of Pinnacle's flying being farmed out unless "something drastic goes wrong."

What do you think he meant by 'something drastic going wrong?'

If Pinnacle Holdings gets 70 (or 76) seaters, I expect nothing less than the cronies at Nonconnah Blvd to dangle those shiny jets in front of the Colgan pilot group, while threatening the Pinnacle pilot group and telling them they are not competitive and are overpaid.

Straight from that article:

"Pinnacle is also flush with $280 million in cash from the sale of a claim from Northwest' bankruptcy. Hunt said Pinnacle has yet to decide how to use the cash, but the carrier's first priority is looking for growth opportunities to earn a return for Pinnacle's investors."





Bingo. PNCL Holdings doesn't give a rats as$ about employees, whether it be Pinnacle Airline employees or Colgan employees. They only want to keep the investors happy.

"yet to decide how to use the cash?"


How about awarding the ALPA pilot proposal the PNCL MEC has put forward?


dingo, think about it.

Pinnacle Holdings just sold a note to get $283 MILLION dollars.

And now they are going to buy Q400s with that money. That's AFTER spending $20 million to buy out Colgan.

ALL THAT HAPPENED, and Pinnacle Holdings has told the PNCL MEC that management CANNOT AFFORD to give the ALPA proposal contract, because that would cost the company $50 million extra over the 4-year life of the contract.


You really think Pinnacle Holdings "can't afford" $50 million?


That's chump change!

Just bought Colgan for $20 million in A HEARTBEAT, while STALLING pilot contract negotiations.


Now, they sold a $283 million dollar note, and will BUY Q400s for Colgan, while continuing to STALL pilot contract negotiations.


If you know ANYTHING about Nonconnah Blvd, it should be that ALL of these actions are PERFECTLY INDICATIVE of the whipsawing about to occur.

we'll come back to this post in a couple months and we'll see if you're still right. :cool: