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Airline bankruptcies seem to have become part of the norm of doing business and now Pinnacle Air has as well. All the majors seem to be either doing it or have done it in the past. No one today is afraid of flying an airline in bankruptcy or in fear that their frequent flyer miles are going away or not earning them before, during or after the exit from the financial event.
Not just Delta, but all the major airlines need healthy regional partners to feed us into the HUB system. Pinnacle Air flies a ton of routes for Delta and owes Delta million’s and now has a credit line, notably after the filing, for many millions more.
Pinnacles services to United and US Air will end / wind down and that means Delta will be the only big customer for Pinnacle going forward according to these SEC filings. Overall I see this as a good thing for us as Delta flyers. This will give Pinnacle a chance to rework many long term contracts with Delta and others. For Delta, they will undoubtedly have more control and “say so” going forward and long term as THE customer for the regional airline.
As a side note Delta has joined other airlines using this new interactive map system to see where you can fly from point A to point B. Try it and see what you think. – Rene