FlyingKat

Only way to file the next morning and stop flying would be if we liquidated in Ch 7. If/when we file CH 11 all contracts are in force until the judge rules otherwise. We wouldn't be able to stop the United operation until there is a hearing before the judge where United could present its case for a wind down and proper closure operation. Then the judge would have to make a ruling about the contract before we could stop UA operations. There would be no parking of the aircraft overnight in a Chapter 11 which is what everone expects to happen here.

This is a positive development. It means United and the company have come up with a revenue arraingement that will satisfy both sides. My guess is there is still work to be done on a longer range contract with United in areas other than revenue that impact the bottom line. The wording about an orderly wind down gives management an out clause in case something develops in the final negotiations that stops a deal. If they sound too rosy before a deal is finalized and somebody buys stock based on that, and the deal tanks, the company and execs would be open to legal action.

I think the company and United are working on a long term deal for more Qs. My guess is they will tear up the old Continental contract and sign a new one with United. With this new contract, the Qs would come under the UAL scope clause which would allow them to be on the same certificate as the 900s. Thus the company gets more revenue for the Qs, and eliminates duplication and cost by getting rid of the need for two certificates and two SOC operations.

rightside02

Item 1.01 Entry into a Material Definitive Agreement
As of February 1, 2012, Pinnacle Airlines Corp. (the "Company") and its subsidiary, Colgan Air, Inc. ("Colgan"), entered into an agreement (the "Interim Agreement") with Continental Airlines, Inc. and United Air Lines, Inc. (collectively, "United"): (i) amending the terms of the parties' Capacity Purchase Agreement dated February 2, 2007 (the "Capacity Purchase Agreement") for an interim period; and (ii) setting forth provisions related to possible further modifications to and restructuring of the Capacity Purchase Agreement after such period. The material terms of the Interim Agreement include:

� The term of the Interim Agreement commenced on February 1, 2012 and will end on April 2, 2012 (the "Term").

� During the Term, United shall pay certain aircraft ownership expenses and increased rates for Colgan's provision of regional air services, including services provided by Colgan's Saab aircraft under provisions substantially identical to the Capacity Purchase Agreement. Increased revenue received from United under the Capacity Purchase Agreement is expected to more than offset the lost benefit the Company previously negotiated with Export Development Canada for deferral of principal and interest payments for Q400 aircraft.

� If the parties do not reach a long term agreement revising the relationship of the parties under the Capacity Purchase Agreement and their pro-rate agreements beyond the Term, then United shall have the right, upon notice, to elect to modify the number of aircraft Colgan would operate under the Capacity Purchase Agreement after expiration of the Term. United would continue to pay the increased rates during this modification period.

� The increases in the rates to be paid by United to Colgan under the Capacity Purchase Agreement during the Term shall be structured as an interest-free loan which shall be automatically forgiven upon expiration of the Term or of the modification period, whichever is applicable.

The Company will file the Interim Agreement as an exhibit to a future periodic report.


Posted it already but just saw it when I was searching some stocks ....


Maybe bought some time ???....

2StgTurbine

If anything, this shows not giving up 5% or 7% will not stop SM from negotiating with UAL.

Disclaimer: Beer post

Saabs

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Fly782

The best part is he would probably vote yes so he can save his precious upgrade. If we park planes all those Colgan guys will just take the jet CA and SR FO positions forcing him down, there wont be an out of order seniority furlough. All talk by mr ShyGuy

mikeypat15

Wonder if a long term contract would dictate a new pay rate for pilots, say 7%? Hmmmm

Washout

If you can learn anything from expressjets foray into concessions. Say no. The pliot group can't effect the bottom line unless there is true clarity from the top down...there is not. say no. Make them pay...eventually they will. This flying is worth the low rates they pay.

block30

"reason for edit, qouted TOS violation, insults, flame bait". Ahahahaha! I can only imagine what Saabs said... . I know my qouting is somewhat bungled, but I am using a smart phone. You get the idea. Goulet!! (Robert)

seahawker01

Think of the Q’s this way… What would you do if you were United?
The Q makes money hand over fist for United and the performance is good. United wants Q’s. Either United will pay more to PNCL or they have to find someone else to do it. With Cape Air and Commute Air now having contracts no one is significantly cheaper and moving the flying means that United would have to endure another three years of teething pains with a new operator. I think PNCL and UAL can come to an agreement even without our BS temp. 7%.

seahawker01

Oh and remember we were making money on the Q’s until the last few months when Sean slashed the flying and increased staffing. Costs go up + Revenue goes down= ALPA/MGMT screaming doomsday. The good news is flying is coming back.