Colgan Air was an American regional airline headquartered in Memphis, Tennessee. As a subsidiary of Pinnacle Airlines Corporation, Colgan Air operated from hubs at La Guardia Airport in New York, Boston’s Logan International, Washington Dulles International Airport, Newark Liberty International Airport and Houston’s George Bush Intercontinental Airport.
The carrier suspended services in Sep-2012
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Low-fare, low frequency carrier Allegiant Air remains bullish over the performance of one of its largest and oldest bases at Orlando Sanford International Airport even as Frontier Airlines is targeting similar markets from nearby Orlando International Airport. While Allegiant’s focus during the last couple of years has been its highly publicised launch of service to Hawaii, the carrier stressed during 2Q2012 its operating margin in Orlando improved significantly despite a 30% increase in departures year-over-year. For Frontier, Orlando has become a key area in its network as the carrier has developed a point-to-point strategy during the last year to help lift its revenues.
Executives at Allegiant recently stated the carrier plans more growth from Orlando, with an expected increase in departures during 2H2012 of 20%. Based on markets published by Allegiant as of 20-Aug-2012 the carrier by year-end will serve approximately 47 destinations from Orlando, which is two more than the 45 operated from Allegiant’s Las Vegas base, the carrier’s largest in terms of seats on offer.
The impact of the changes in legacy-regional relationships, illustrated in stark relief by SkyWest Airlines on 02-Nov-2011, was shown again on 03-Nov-2011 when Pinnacle Airlines Corp posted a third quarter loss of USD3.5 million. The loss was a USD13 million swing from 3Q2010 when it earned USD9.4 million. It also projected a loss in the fourth quarter, with expectations for a loss in 2012.
Projections had expected a profit on USD317-328 million in revenues. It did meet revenue expectations posting consolidated operating revenue of USD319.8 million, a 5.8% increase largely owing to the increase in Q400 operations as well as a year-on-year increase in United Express rates.
The future of Pinnacle Airline Corp looks very rosy to CFO Peter Hunt, despite the fact the company posted a first quarter net loss. The reason is simple, the company is on the cusp of realizing the fruits of its labour in maintaining a healthy Pinnacle Airlines, integrating newly acquired Mesaba Airlines and bringing Colgan Airways out of poverty to what could be its first profitable quarter.
After Pinnacle Airlines Holdings executives promised its acquisition of Mesaba would be immediately accretive, they were proved right as the new subsidiary generated USD3.1 million in the third quarter and EBITDA of USD4.4 million, consistent with expectations and targets under its purchase agreement with Delta.
Pinnacle profits declined in 2Q2010 to USD5.8 million from USD5.9 million in 2Q2009. Consolidated operating income came in at USD19.8 million in the second quarter, declining USD3.9 million from a year ago.
"If the major airlines pare down to three, as industry analysts predict,...Americans would face fewer choices, worse service and higher prices."
Congressman James Oberstar, Chairman, House Transportation and Infrastructure Committee