Emerges From Bankruptcy As A Subsidiary Of The Legacy Carrier

The regional airline which has been flying as Delta Connection has emerged from bankruptcy as a subsidiary of the legacy carrier.

Pinnacle Airlines emerged from bankruptcy Wednesday and became a part of Delta after the mainline carrier gave Pinnacle $74.3 million in financing, and agreed to add 40 CRJ-900 regional jets to Pinnacle's fleet. The Atlanta Journal Constitution reports that the deal was reached earlier this year, with Delta agreeing to invest $52 million in the smaller carrier.

As part of the company's restructuring, Pinnacle will move its headquarters from Memphis, TN, to Minneapolis, MN, by the end of May. The regional carrier operates about 1,000 flights a day in the U.S. and Canada, and claims some 4,900 employees and 181 regional jets.

“We have come a long way,” newly appointed CEO Ryan Gumm said in a statement Wednesday, according to the Minneapolis Star-Tribune. “Our employees and our airline weathered difficult changes in order for us to emerge as a competitive regional airline.”

Gumm was appointed as COO of Pinnacle in February. He now succeeds CEO John Spanjers, who guided the carrier through the bankruptcy proceedings.

FMI: www.delta.com