Delta regional partner Pinnacle Airlines says its facing bankruptcy unless it can cut costs with its employees and partner contracts with larger airlines.
Pinnacle served 4 million passengers last year for Delta but according to reports they lost $9 million last year:
‘To ensure its own survival, Pinnacle says it needs financial concessions from employees and the bigger airlines. If Pinnacle cannot negotiate those concessions, ultimately the company may file for a Chapter 11 bankruptcy reorganization.’
Pinnacle laid off over 150 workers late last year to trim costs.
We’re hearing that it’s likely they will file Chapter 11 protection. It gives Pinnacle just that…protection. They’ll have more leverage to cut wages and lay off workers, like it or not. It’s the way airlines are doing business now…
Sites That Link to this Post
- Pinnacle Airlines Files for Bankruptcy | April 2, 2012