Pinnacle Airlines Gets Court Approval to Reject Colgan leases
Bankrupt Pinnacle Airlines Corp. has been cleared to reject leases with airports formerly served by its now-defunct subsidiary Colgan Air in Texas and the Northeast.
The U.S. Bankruptcy Court approval last week included one lease at Memphis International Airport, where the company’s Pinnacle subsidiary rented cargo space for storage of ground service equipment.
The Memphis-based parent company pulled the plug on Colgan Sept. 5 as part of a push to eliminate unprofitable contracts with mainline airlines. Colgan had flown regional feeder flights for United/Continental and US Airways before Pinnacle filed Chapter 11 bankruptcy April 1.
The court last week approved an order allowing Colgan to reject use and lease agreements at airports including Washington Dulles, Newark Liberty and smaller airports scattered across Texas, Louisiana, New York, Pennsylvania, Virginia and West Virginia.
Colgan’s leases covered facilities for ground operations, crew rooms and maintenance.
Memphis International Airport vice president of properties Richard White said Pinnacle leased about 6,500 feet of cargo space for $12 a square foot a year.
Pinnacle operates Delta Connection flights out of Memphis, so its presence at the airport has been curtailed by Delta’s downsizing of the Memphis hub.