Pinnacle Airlines has set 1 May as the deadline for the company to file a new five-year budget and business plan as well as propose changes to collective bargaining agreements with its unions.
Both milestones were mandated under a new court filing in Pinnacle's nearly 18-day-old bankruptcy case. The deadlines are among the conditions required by Delta Air Lines, which has agreed to provide a $74 million debtor-in-possession loan to keep Pinnacle solvent for the rest of the year.
Pinnacle has announced plans to wind down turboprop flying for United Airlines and CRJ900 flying for Delta. Instead, the regional carrier plans to reorganise around 50-seat CRJ200s, of which it has 140 aircraft flying for Delta.
However, Delta's loan terms require that it must first review and approve Pinnacle's proposed new five-year budget plan.
Pinnacle also must submit its proposals asking for employees to make new salary and benefit concessions as part of the bankruptcy plans. Certain employee groups, such as the Association of Flight Attendants, have already vowed to protect their members' interests, saying that Pinnacle's financial problems are the result of poor management decisions.
The unions also have complained about the Pinnacle board's decision to significantly increase the salaries of airline chief executive officer Sean Menke and chief operating officer John Spanjers.