Pinnacle Airlines Corp. Q3 2009 Earnings Call Transcript

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2009-11-03 11:44:07.0

Tags: Avondale Partners LLC, Pinnacle Airlines Corp., Call Transcript, Earnings, Aerospace & Defense, Free Trade, Manufacturing, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from [Alec Swanson] for Michael Linenberg - BofA Merrill Lynch.

[Alec Swanson] for Michael Linenberg - BofA Merrill Lynch

I just had a couple of quick questions. Phil, you mentioned earlier about the pilot agreement with ALPA on the Pinnacle side. Could you just give us an update on the ALPA group at Colgan?

Philip Trenary

Yes. Thanks for asking that. They have started negotiations now and they are going very well. They’re moving along and if it continues like this it should be a, you never know, but we’re very pleased with the way it’s moving along. It should come to, we hope, a successful conclusion, certainly much more quickly than Pinnacle has.

[Alec Swanson] for Michael Linenberg - BofA Merrill Lynch

Peter, when you take a look at the fourth quarter you know can you break out if possible any kind of block hours you know for Pinnacle and Colgan that you expect for the fourth quarter? And maybe looking into 2010 as well.

Peter Hunt

Well we’re still putting together our 2010 plan so I can probably give you a little bit more information about that at a later date. But when I look at the fourth quarter of ’09, I don’t really expect any big significant changes to block hours at Pinnacle. Colgan might be down slightly, simply because seasonally we do pull some of the pro rate flying down. But it won’t be much different than the fourth quarter that we had last year with Colgan.

Operator

Your next question comes from Bob McAdoo - Avondale Partners LLC.

Bob McAdoo - Avondale Partners LLC

Just a little follow up on the previous question. Can you remind us what the delivery schedule is for the Q400’s coming in mid-2010?

Peter Hunt

Sure Bob. The aircraft start arriving in August and we’ll put the first one into service in September. We think we’ll have seven of them in service before the end of the year next year. And then the full 15 will be in service by May of 2011.

Bob McAdoo - Avondale Partners LLC

Secondly, could you, obviously you’re winding down the LaGuardia operation. Do you see any chance to pick up any U.S. Airways pro rate business out of DCA? And if not, what’s the status of the airplanes that have been used in the pro rate business? Are they owned, leased, being sold? What’s going on there?

 

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