The airline servicing Bradford Regional Airport has been bought
by a Tennessee company. However, company officials said the local
traveling public won’t notice any changes.
On Wednesday, Colgan’s Director of Development Dennis Burnett
confirmed to The Era that Pinnacle Airlines Corp., has purchased
Colgan Air Inc., in a deal officially announced Jan. 18.
Pinnacle – the parent company of Pinnacle Airlines and based in
Memphis, Tenn. – operates under the name Northwest Airlink and has
127 Canadair regional jets in the U.S. and Canada. Officials said
the two airlines will operate as separate entities with independent
and separate management structures.
“This is basically just a change in ownership,” Burnett said.
“The (Colgan) management will remain the same and the Colgan family
will remain very active. It provides us a whole new platform to
grow and with more resources. It’s a good, good thing for the
company.”
Colgan currently services Bradford Regional under the banner of
US Airways Express. The airline is also in the process of changing
hub cities from Pittsburgh to Washington in a plan local airport
officials hope will increase enplanements in Bradford and
eventually wean the facility off the federal Essential Air Service
program.
The airline has also been looking at reaching a code share
agreement with United Airlines – which was recently awarded a
non-stop route between Washington and Bejing, China.
“We still plan on addressing the market there (Bradford),”
Burnett said, adding airline officials have been occupied with the
transaction with Pinnacle. “Our goal is to have it done (change to
Washington) by the spring. This business is very liquid and we are
constantly evaluating the markets.
“We appreciate the community’s strong desire for Washington, but
at this point we are just trying to get our stars aligned.”
In announcing the acquisition on both airlines’ Web sites,
Pinnacle President and Chief Executive Officer Phillip Trenary said
“The purchase of Colgan Air gives our corporation access to and
relationships with three of the largest carriers in the United
States: Continental Airlines, United Airlines and US Airways. When
combined with Pinnacle Airlines Inc.’s airline services agreement
with Northwest Airlines, (Pinnacle) now code-shares with a
significant portion of the major airlines in the United States.
“These new relationships will be invaluable to helping grow both
Pinnacle Airlines Inc. and Colgan Air.”
Burnett said the type of aircraft – 34-seat, Saab 340’s – will
remain the same and still fly under the Colgan name.
“The average person shouldn’t see any difference whatsoever,”
Burnett stressed.
In the fall of 2005, Colgan officials announced the airline was
looking to renegotiate its two-year contract under EAS with the
U.S. Department of Transportation due to a decline in passenger
levels and a hike in fuel costs.
That is where the uncertainty began.
Two airlines, Colgan and RegionsAir applied to the DOT to
service Bradford and nearby Jamestown, N.Y. The agency originally
chose RegionsAir to provide the service, principally because of a
lower subsidy rate.
However, when RegionsAir experienced difficulty in providing
service to its new markets – the start times at Bradford were
stalled on three separate occasions – and through the urging of
local airport officials, the DOT eventually changed its decision
and presented Colgan with the service. Shortly afterward, officials
announced a change in hub cities from Pittsburgh to Washington.
Last November, word broke that RegionsAir was up for sale,
citing higher than anticipated maintenance costs and revenue
shortfalls. The airline also reportedly broke ties with parent
carrier Continental over what airline industry officials called a
lack of reliability as a result of repeated delays and
cancellations.
In addition to US Air, Colgan, which has headquarters in
Virginia, operates under Continental Connection and United Express
and has a footprint in 53 cities in 13 states.
Pinnacle will reportedly pay $20 million for all the issued and
outstanding capital stock of Colgan, with $10 million being an
immediate cash payment and another $10 million in the form of a
one-year note secured by the Colgan’s stock.
