Pinnacle Airlines files for chapter 11 reorganisation
Pinnacle Airlines and its subsidiaries announced (01-Apr-2012) it has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York, in an effort to continue implementing a turnaround plan aimed at addressing its operational and financial challenges. Pinnacle expects to accomplish several key initiatives during the process which include restructuring its key operating agreements with Delta Air Lines, winding down its operations with United Airlines, completing the wind-down of its Essential Air Service flying with US Airways, achieving cost savings from its workforce, identifying additional opportunities across the organisation to reduce costs, and ensuring it has the appropriate fleet, staffing levels and network to operate profitably on an ongoing basis. [more - Original PR]
Pinnacle: "We intend to use the Chapter 11 process to reset our financial and operational structure in order to position Pinnacle for viability over the long term. Quite simply, our current business model is not sustainable, as increasing operating expenses, liquidity constraints, business integration delays and difficulties associated with combining our operations have hindered our ability to maximize our growth potential. Following a lengthy review process, and with the assistance of independent financial, industry and legal advisors, our Board of Directors determined that a court-supervised restructuring is the only feasible course of action to implement our turnaround plan," Sean Menke, president and CEO. Source: Company release, 01-Apr-2012.