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Published on 11/6/2012 in the Prospect News Distressed Debt Daily.

Pinnacle Airlines flight attendants ratify collective bargaining deal

By Caroline Salls

Pittsburgh, Nov. 6 - Pinnacle Airlines Corp. wholly owned subsidiary Pinnacle Airlines Inc. said its flight attendants ratified a tentative agreement reached on Oct. 12.

According to a news release, the ratification means the flight attendants, who are represented by the Association of Flight Attendants-CWA (AFA), will avoid the Section 1113 litigation process in bankruptcy court.

"The ratification of the new CBA represents positive progress for Pinnacle and a major step forward in positioning the company to emerge from our restructuring with a cost structure necessary to compete in the regional airline marketplace," Pinnacle president and chief executive officer John Spanjers said in the release.

The contract remains subject to required corporate approvals and bankruptcy court approval.

Pinnacle, a Memphis-based operator of a regional airline, filed for bankruptcy on April 1, 2012 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 12-11343.


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