$52 million to be spent on reorg of Pinnacle Airlines
MEMPHIS, TN: Delta Connection carrier Pinnacle Airlines emerged from bankruptcy Wednesday and became a subsidiary of Delta Air Lines.
Pinnacle also plans to move its headquarters from Memphis to Minnesota by the end of this month.
Atlanta-based Delta last year gave Pinnacle $74.3 million in financing and said it would add to the Pinnacle fleet 40 CRJ-900 76-seat regional jets that it is buying from Bombardier Aerospace.
The airlines earlier this year reached the deal for Delta to own Pinnacle as a subsidiary with a separate operating certificate after Pinnacle’s Chapter 11 reorganization. Delta agreed to invest $52 million for Pinnacle’s emergence from bankruptcy.
Pinnacle has 4,900 employees, 181 regional jets and 1,000 daily flights around the country and in Canada. But at Hartsfield-Jackson International Airport, it carries less than 2 percent of the passengers.