Posted on: 13 December 2011 by Ross McSweeny
Pinnacle Airlines Corporation has begun a comprehensive programme to reduce short- and long-term costs and enhance liquidity.
Planned initiatives include seeking modifications to the company’s agreements with its mainline airline partners, equipment lessors, debt holders, property lessors and vendors. The company will also seek to work with its pilots and other employees (both union and non-union) to reduce labour costs. As part of its efforts, the company says it will examine and further rationalise its business lines, organisational structure and executive and director level functions.
Pinnacle Airlines Corporation has engaged the services of Seabury Group’s consulting division, Barclays Capital, and the law firm of Davis Polk & Wardwell to assist with these efforts.
“Pinnacle Airlines Corporation is facing a convergence of events that, if left unaddressed, will make 2012 an extremely challenging year," said Sean Menke, the company’s president and CEO. “We have a great deal of hard work ahead of us, but these efforts are necessary to ensure we can operate as a profitable business for our shareholders, mainline flying partners, employees and other stakeholders.”