Pinnacle Airlines raises prospect of bankruptcyby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — A regional airline that serves greater Minnesota and carried four million passengers last year for Delta Air Lines may be headed into a bankruptcy reorganization.
In a letter to employees, Pinnacle Airlines' CEO Sean Menke says the carrier is losing money on its contracts to fly passengers for Delta and United airlines.
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.
That would enable the Tennessee-based carrier to change or cancel contracts while continuing to fly. For the first nine months of 2011, Pinnacle lost $9 million. A company spokesman said Pinnacle's flights are continuing normally.