On April 1, 2012, Pinnacle Airlines Corp. announced it would be filing bankruptcy under Chapter 11. Many have been worrying at the airports where the airline services would be affected. Officials at the Northern Maine Regional Airport stated they don’t believe the bankruptcy filing of pinnacle Airlines will affect services at the small airport.
Pinnacle Airlines Corp. Is the parent company of Colgan Air Inc., which is a commuter airline that provides service from Logan Airport in Boston to Hancock County -Bar Harbor Airport and Presque Isle in Trenton.
The airline, which is based in Memphis Tennessee entered in to the bankruptcy filing under Chapter 11 on April 1 at the US Bankruptcy Court in New York. At that time, Pinnacle Airlines listed assets of $1.5 billion and liabilities of $1.4 billion. The plan for the company is to re-organize under Chapter 11 bankruptcy while keeping the business running. Filing bankruptcy under Chapter 11, allows the business to stay open while negotiating and paying the creditors over a certain timeframe.
It was reported today that Colgan Air is planning on shutting down service to both airports it services in Maine. It’s no surprise, as the airline which is now in bankruptcy, petitioned the US Department of Transportation, back in September, to end its service between Boston and these two airports. Under a federal regulation from the Department of Transportation, airlines are required to provide an Essential Air Service program and can’t leave until they find a replacement. In March, Peninsula Airways of Alaska was chosen by the Department of Transportation to operate under the essential air service program to service both airports that Pinnacle Airlines Corp. was vacating due to the bankruptcy filing.