Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Pinnacle West Capital Corporation    PNW

News SummaryMost relevantAll newsSector newsTweets 

Pinnacle Airlines flies into bankruptcy

share with twitter share with LinkedIn share with facebook
share via e-mail
04/02/2012 | 07:14am CEST

Pinnacle Airlines Corp filed for bankruptcy protection late on Sunday, as the U.S. regional airline fell victim to high fuel prices and dampened travel demand that has negatively impacted some of the major players in the industry.

In the past, upon facing financial trouble, United Continental Holdings Inc's United Airlines and Delta Air Lines Inc have taken the Chapter 11 route to cut costs and later found merger partners. AMR Corp, the parent of American Airlines, had also filed for bankruptcy late last year.

In a filing with a U.S. bankruptcy court, Pinnacle said it seeks to resolve its operational and financial difficulties through the Chapter 11 process. It also seeks to implement a turnaround plan by cutting costs and restructuring certain agreements with major airlines.

Pinnacle is a regional airline headquartered in Memphis, Tennessee that provides transportation between hubs and smaller outlying cities for passengers ticketed by major carriers.

At present, Pinnacle's primary customer is Delta Air Lines, with additional flying currently provided to United Airlines and, to a much lesser extent, US Airways.

In light of high fuel costs and weak travel demand, Pinnacle said major carriers have aggressively cut costs and decreased capacity.

"The result has been a race to the bottom, as the debtors and other regional airlines have been forced to bid ever-lower rates and accept increasingly unfavorable contract terms to win the business of major carriers," Pinnacle said in the filing.

The regional airline said it had received a commitment for $74.3 million of debtor-in-possession (DIP) financing from Delta Air Lines that would help it to carry out normal operations.

As part of the bankruptcy plan, Pinnacle said it would restructure its key operating agreements with Delta Air Lines and would wind down its operations with United Airlines.

The company said it would also look to achieve workforce cost savings by seeking wage reductions and other concessions from labor unions. The airline said it hopes that consensual agreements can be reached with the unions.

However, there is a possibility that Pinnacle could face turbulence from the unions on the question of wage cuts, which could potentially result in a protracted court battle.

In November, AMR Corp, the parent of American Airlines, filed for bankruptcy and immediately flew into trouble with unions over negotiation of labor contracts.

In March, AMR sought bankruptcy court approval to throw out labor contracts, a move that puts new pressure on pilots, flight attendants and other unionized workers to quickly agree to concessions.

Pinnacle had listed estimated assets and liabilities above $1 billion, according to a court filing.

The case is Pinnacle Airlines Corp, Case No. 12-11343, U.S. Bankruptcy Court, Southern District of New York.

(Reporting by Sakthi Prasad; Editing by Michael Perry and Jeremy Laurence)

share with twitter share with LinkedIn share with facebook
share via e-mail
06/27 PINNACLE WEST CAPITAL CORP : Regulation FD Disclosure, Financial Statements and ..
06/21 PINNACLE WEST CAPITAL : Declares Quarterly Dividend
06/21 APS : Customers Set All-Time Record for Electricity Use
06/20 PINNACLE WEST CAPITAL CORP : Other Events, Financial Statements and Exhibits (fo..
06/16 PINNACLE WEST CAPITAL : Breakfast Technical Briefing on Electric Utilities Stock..
06/05 PINNACLE WEST CAPITAL CORP : Regulation FD Disclosure, Financial Statements and ..
05/23 PINNACLE WEST CAPITAL CORP : Submission of Matters to a Vote of Security Holders..
05/22 PINNACLE WEST CAPITAL : Declares Quarterly Dividend of $0.66
05/19 PINNACLE WEST CAPITAL : Palo Verde Clean Energy Performance Highlighted as Indus..
05/10 PINNACLE WEST CAPITAL CORP : Regulation FD Disclosure, Financial Statements and ..
More news
Sector news : Electric Utilities - NEC
06/28 South Korea's KEPCO in talks for stake in UK nuclear project
06/26 Open Fiber close to deal with Acea on broadband in Rome - sources
06/21DJSOUTHERN : Mississippi Regulators Seek to End Southern Co. 'Clean-Coal' Plant --..
06/21DJSOUTHERN : Mississippi Regulators Seek to End Southern Co. 'Clean-Coal' Plant
06/21 CENTRICA : UK considering how to tackle household energy prices
More sector news : Electric Utilities - NEC
News from SeekingAlpha
06/28 Pinnacle West Capital (PNW) Investor Presentation - Slideshow
06/21 Pinnacle West Capital Corporation declares $0.655 dividend
06/09 Impressive Dividends And Growth For A Decade
06/06 Pinnacle West Capital (PNW) Investor Presentation - Slideshow
06/06 Are You Sure The Expenses Are Too High?
Financials ($)
Sales 2017 3 605 M
EBIT 2017 918 M
Net income 2017 473 M
Debt 2017 4 755 M
Yield 2017 3,04%
P/E ratio 2017 20,52
P/E ratio 2018 19,42
EV / Sales 2017 4,02x
EV / Sales 2018 3,82x
Capitalization 9 739 M
More Financials
Duration : Period :
Pinnacle West Capital Corp Technical Analysis Chart | PNW | US7234841010 | 4-Traders
Full-screen chart
Technical analysis trends PINNACLE WEST CAP...
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 14
Average target price 85,0 $
Spread / Average Target -2,6%
Consensus details
EPS Revisions
More Estimates Revisions
Donald E. Brandt Chairman, President & Chief Executive Officer
James R. Hatfield Chief Financial Officer & Executive Vice President
Roy A. Herberger Independent Director
Humberto S. Lopez Independent Director
Michael L. Gallagher Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
DUKE ENERGY CORP11.70%59 980
IBERDROLA12.74%49 777
SOUTHERN CO0.43%49 164
More Results