Pinnacle Gets Relief on Q400 Payments
Export Development Canada (EDC) has agreed to defer $16.6 million worth of loan payments for the fleet of Bombardier Q400 turboprops operated by Pinnacle Airlines subsidiary Colgan Air, a Pinnacle filing with the Securities and Exchange Commission revealed in late January. According to the document, the EDC agreed to defer payments and withhold any “enforcement action” from January 14 through March 31.
In December Pinnacle announced that it had begun what it called a comprehensive program to cut costs and enhance liquidity centering on initiatives to modify its agreements with mainline airline partners, equipment lessors, debt holders, real-estate lessors and vendors. The company also confirmed plans to extract new labor cost concessions from its pilots and other employees in an effort to stave off bankruptcy.