Pinnacle Airlines Corp., provider of regional jet service for Delta, United and US Airways, filed for Chapter 11 bankruptcy court protection.
The company's reorganization plan calls for "restructuring its key operating agreements with Delta Air Lines, winding down its operations with United Airlines, completing the wind-down of its Essential Air Service flying with US Airways, achieving cost savings from its workforce, identifying additional opportunities across the organization to reduce costs, and ensuring that it has the appropriate fleet, staffing levels and network to operate profitably on an ongoing basis," according to a company statement.
Delta has committed $74.3 million in debtor-in-possession financing, pending court approval. Of that, $44.3 million would be used "to repay a secured promissory note held by Delta."
Source: Business Travel News