Indianapolis-based Republic Airways has agreed with United Airlines to fly the 28 Bombardier Q400s that bankrupt Pinnacle Airlines plans to return to its lessors, Republic announced Monday.
Current Pinnacle Airlines COO John Spanjers will replace Sean Menke as chief executive of the Memphis, Tennessee-based regional airline group on June 1, Pinnacle said in a statement issued Thursday. Menke, who, according to Pinnacle, has chosen to resign from the company, has agreed to help with the leadership transition over the next five weeks.
Memphis-based Pinnacle Airlines filed for Chapter 11 bankruptcy protection on April 1, marking the start of a process in which it plans to “wind down” all its United Airlines turboprop flying, including its Colgan Air Bombardier Q400 operation.
St. George, Utah-based SkyWest announced today that it has completed its acquisition of Houston-based ExpressJet Holdings. Under the terms of the $133 million transaction, ExpressJet Airlines becomes a wholly owned subsidiary of Atlanta-based Atlantic Southeast Airlines (ASA), itself a unit of SkyWest.
The consolidation of the regional airline industry continued unabated last month, as St. George, Utah-based SkyWest revealed plans to acquire Houston-based ExpressJet. The $133 million transaction will involve a direct purchase by SkyWest's Atlanta-based subsidiary, Atlantic Southeast Airlines (ASA), of all of ExpressJet's common shares for $6.75 each in cash.
Delta Air Lines announced last month that it has entered into definitive agreements to sell two of its wholly owned regional airline subsidiaries–Minneapolis-based Mesaba and Compass Airlines. Delta has sold Mesaba to Memphis, Tenn.-based Pinnacle Airlines for $62 million, and Compass to St. Louis-based Trans States Holdings for $20.5 million. Delta said it would use the proceeds from the transactions for general corporate purposes.
Delta Air Lines announced today that it has entered into definitive agreements to sell two of its wholly owned regional airline subsidiaries-Minneapolis-based Mesaba and Compass Airlines. Delta said it has sold Mesaba to Memphis, Tenn.-based Pinnacle Airlines for $62.0 million, and Compass to St. Louis-based Trans States Holdings for $20.5 million. Delta said it would use the proceeds from these transactions for general corporate purposes.
Houston-based ExpressJet has named Thomas Hanley its new president and CEO. Hanley has replaced interim president and CEO Patrick Kelly, who has returned to his position on ExpressJet’s board of directors on May 1 after filling a vacancy left by long-time CEO James Ream. Ream resigned last December to accept a position with Dallas-based American Airlines.
The regional airline partners of United and Continental Airlines will no doubt face a period of some uncertainty as the major airlines prepare to merge their operations into the world’s largest international airline.
SkyWest Airlines’ decision to lend United Airlines $80 million in no way signals any particular interest on the part of the St. George, Utah-based regional to help finance the operations of its code-share partners, a point SkyWest executive vice president and CFO Brad Rich clearly wanted to emphasize during the company’s third-quarter earnings conference call last month.