|By PR Newswire||
|November 16, 2012 08:52 PM EST||
MEMPHIS, Tenn., Nov. 16, 2012 /PRNewswire/ -- Pinnacle Airlines Corp.'s (PNCLQ) wholly owned subsidiary, Pinnacle Airlines Inc., today announced that, in accordance with Section 1113 of the United States Bankruptcy Code, the United States Bankruptcy Court for the Southern District of New York has issued a ruling providing Pinnacle Airlines and the Air Line Pilots Association (ALPA), the legal representative of the Pinnacle Airlines pilot group, a clear path to a consensual agreement.
The Court noted three "very limited exceptions" that prevented it from granting Pinnacle's motion at this time, characterizing them as "relatively easy to fix." The court concluded that significant modifications to the CBA are needed.
"Today's ruling gives Pinnacle a brief opportunity to reach an agreement that will provide the savings we need," said John Spanjers, president and CEO of Pinnacle Airlines Corp. "Although the Court did not approve our proposed modifications in full, the Court gave the parties a clear road map to arrive at cost savings necessary for Pinnacle to emerge from bankruptcy as a viable, competitive company. We are hopeful that the Court's decision will facilitate a consensual resolution, and we will continue to devote every effort to that goal. Pinnacle continues to face severe financial challenges requiring urgent cost savings, but we now believe there is a path to achieving a competitive cost structure necessary to survive in our challenging industry."
About Pinnacle Airlines Corp.
Pinnacle Airlines Corp. (OTC: PNCLQ), a $900 million airline holding company with 5,250 employees, is the parent company of Pinnacle Airlines, Inc. Flying as Delta Connection, Pinnacle Airlines, Inc. operates 197 regional jets on 1,000 daily flights to 131 cities in the United States and Canada. Corporate offices are located in Memphis, Tenn., and hub operations are located in Atlanta, Detroit, Memphis and Minneapolis. Visit www.pncl.com for more information.
Pinnacle Airlines Corp.
Michael Freitag / Nick Lamplough
Joele Frank, Wilkinson Brimmer Katcher
SOURCE Pinnacle Airlines Corp.