| Type | Public (NASDAQ: PNCL) |
|---|---|
| Industry | Transportation |
| Founded | 1985 |
| Headquarters | Memphis, Tennessee |
| Area served | United States |
| Key people |
Donald J. Breeding (Chairman) |
| Revenue | US$845 million(2009) |
| Operating income | US$80.7 million(2009) |
| Net income | US$41.9 million(2009) |
| Employees | 7,700 |
| Subsidiaries | Pinnacle Airlines Mesaba Airlines Colgan Air |
| Website | www.pncl.com |
Pinnacle Airlines Corp. (NASDAQ: PNCL) is an American holding company headquartered in Memphis, Tennessee, which is the parent company of three airlines: Pinnacle Airlines, Mesaba Airlines and Colgan Air. The company contracts its airlines to fly in the aircraft livery of other airlines such as Continental Airlines, Delta Air Lines, United Airlines, and US Airways.[1]
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In February 1985, Pinnacle was established as Express Airlines I, offering regional airline passenger service into a major code sharing airline’s hub.[2] Express I began its first code sharing agreement with Republic Airlines in May 1985.[3] Republic was the dominant carrier in Memphis but, in keeping with the hub-and-spoke concept, wanted to add more smaller cities and free up its larger DC-9 jets to serve longer stage-length routes. Express I was able to accomplish this by beginning service on June 1, 1985, to 3 cities using BAe Jetstream 31 aircraft. Within six months, Express Airlines I was operating in ten markets using nine Jetstream 31s and two Saab 340 aircraft.
On December 15, 1985, a second contract opened operations at a Republic Airlines home base at Minneapolis-St. Paul. By its first anniversary, Republic Express was operating 20 Jetstream 31s and seven Saab 340s in 32 markets. In Spring 1986, Northwest Airlines announced the acquisition of Republic, which was completed on October 1, 1986, following regulatory and shareholder approvals.
Over the next decade, Express I provided airline services to 56 cities in the Southeast and upper Mid-West. In 1997, Northwest Airlines elected to make changes in the structure of Express I, which was a privately held company. On April 1, 1997, Express I became a wholly owned subsidiary of Northwest Airlines. In order to consolidate the many Airlink systems operated at that time, Express I transferred flying at Minneapolis-St. Paul, allowing it to concentrate on the Memphis Hub.
In August 1997, Express I moved its corporate headquarters to Memphis, allowing all the various departments to function from its main base of operations. On May 7, 1999, Express I announced a major transition into the jet age as its parent company announced that Express would be the launch operator of the Bombardier Canadair Regional Jet (CRJ) at Northwest.
Express I further expanded by the development of three additional Maintenance, Repair, Overhaul (MRO) facilities related to CRJ operations. The primary CRJ MRO is located in Knoxville, Tennessee, and is capable of handling up to four aircraft under cover. Other two CRJ maintenance sites are located Indiana at South Bend and Fort Wayne.
Express Airlines I changed its name to Pinnacle Airlines, Inc., on May 8, 2002. In November 2003, Pinnacle Airlines became a publicly traded company, using the ticker symbol PNCL on the NASDAQ. Pinnacle has been contracted to fly 124 CRJ's on behalf of Northwest Airlines. On July 18, 2004, the first CRJ was christened the "Spirit of Memphis Belle" in honor of the WWII bomber that was paid for with funds raised by the African-American community in Memphis. The 100th CRJ, aircraft N8944B, was christened "Spirit of Beale Street" in honor Pinnacle's home town entertainment district, which was later reassigned to Mesaba Airlines. Just recently, Pinnacle re-christened a freshly painted CRJ in the Delta Connection livery, aircraft N8560F, as the new "Spirit of Beale Street."
On January 18, 2007, Pinnacle announced the acquisition of Colgan Air, which will continue to operate independently.[4] The acquisition of Colgan Air is a $20 million strategic move to get access to Colgan’s partners, Continental Airlines, United Airlines and US Airways[5].
On January 4, 2008, Pinnacle took the last step in becoming independent again with the purchase of its Class A Preferred stock from Northwest Airlines. Pinnacle recently bought Mesaba Airlines. Mesaba will still operate as Mesaba Airlines. [6]
Pinnacle Airlines is the largest subsidiary in terms of passengers, planes, and routes.[7] Pinnacle carries roughly twice as many passengers as Mesaba and four times as many as Colgan.
Pinnacle Airlines Corp. and subsidiary Pinnacle Airlines, Inc. have their headquarters in Memphis, Tennessee.[8][9] As of October 2009 they were leasing a combined 86,838 square feet (8,067.5 m2) of space in the 1689 Nonconnah Boulevard building and the 1785 Nonconnah Boulevard building.[10] The buildings are 3.47 miles (5.58 km) driving distance from the terminal at Memphis International Airport.[11]
It has recently been announced Pinnacle Airlines Corp., intends upon erasing the Colgan Air corporate name, and replacing it by assimilating Colgan's flying and routes, within the branding of the parent companies Mesaba Airlines wholly owned subsidiary.
In 2010 Pinnacle Airlines Corp. considered moving its headquarters to Downtown Memphis and to Olive Branch, Mississippi, and the airline also considered keeping the headquarters in its current location. Pinnacle selected Downtown Memphis, and on October 8, 2010, the airline held a celebration for its decision to move into One Commerce Square in Downtown Memphis. The Center City Commission, the City of Memphis, and Shelby County gave out $10 million in incentives, including free parking, to convince Pinnacle to move to Downtown Memphis.[12]
Among the corporate officers of Pinnacle Airlines Corp are Brian T. Hunt VP and General Counsel, formerly with Global Aero Logistics[1]