PNCL: Pilot Negotiations Cost Pinnacle Some Planes
According to an SEC Filing, Small Cap Watch List (Track at Marketocracy) member Pinnacle Airlines (PNCL), an Amended and Restated Airline Services Agreement with Northwest Airlines (NWA) required Pinnacle and the Airline Pilots Association to reach a new collective bargaining agreement. Since they did not, Northwest intends to transition the 15 aircraft delivered to Pinnacle in the first quarter of 2007 to one of Northwest’s wholly owned subsidiaries.
Since the election was optional on Northwest’s part, we assume it was more in their interest than in Pinnacle’s. However, in lieu of the aircraft Pinnacle is entitled to the full amount of its stipulated unsecured claim in the Northwest bankruptcy proceedings. The Company still retains $42.5 million of this unsecured claim, and may monetize it in the near future.
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[...] Small Cap Watch List (Track at Marketocracy) member Pinnacle Airlines Corp. (PNCL) reported first quarter 2007 net income and earnings per fully diluted share (”EPS”) of $9.4 million and $0.38, respectively. Analysts had been expecting the company to earn $0.40. However, thereduction in net income was caused primarily by the contractual changes in the airline services agreement with Northwest Airlines, Inc. As we noted before, the long-term impact of those contractual changes are largely offset by a new agreement with Delta. Shares are up ever so slightly on the news. For more information, see all articles on: Stock Market, PNCL, NWA This article is for entertainment purposes only and reflects the author’s opinion. It is not a solicitation or advice to buy or sell any securities mentioned. Always consult a qualified advisor before making investment decisions. [...]