Pinnacle, Delta ink deal

Pinnacle Airlines Corp. has entered into a new capacity purchase agreement with Delta Air Lines to operate 16 CRJ-900 aircraft as a Delta Connection carrier.

Pinnacle (NasdaqGM: PNCL) expects that the aircraft will be operated by its wholly-owned regional jet subsidiary, Pinnacle Airlines Inc., which had been dedicated to flying regional jets for Northwest Airlines Corp. (Pink Sheets: NWACQ) until recently. An amended airline service agreement between Pinnacle and Northwest dated Jan. 1 allows Pinnacle to fly for other airlines.

"We look forward to a long-term partnership with Delta, and we appreciate the confidence that they have placed with us," said Phil Trenary, Pinnacle's president and CEO, in a statement. "We will continue our tradition of industry leading regional jet operational performance as we transition into the CRJ-900 aircraft for Delta."

Under the 10-year agreement, Pinnacle, which is based in Memphis, will acquire and finance the aircraft. Terms of the transaction were not disclosed. Pinnacle will start operating as a Delta Connection carrier in December, operating the 76-seat aircraft, built by Bombardier Aerospace.

With its newly acquired Colgan Air, Pinnacle now flies for nearly all legacy carriers, including Northwest, Continental, Delta, United Airlines and US Airways.

SOURCE: Memphis Business Journal - 10:37 AM CDT Monday, April 30, 2007