Pinnacle Airlines, a regional airline providing contract services primarily to Delta but also United and US Airways, has filed for bankruptcy. We could talk about how they’ll be getting out of their Q400 flying for United in the NYC area.  We could talk about how they’re walking away from some unprofitable flying for Delta on CRJ-900s.  We could talk about a lot of things that Pinnacle is doing and will be doing to remain a viable regional airline.

I’d rather talk about the fact that one week before this bankruptcy filing, relatively new CEO Sean Menke and COO Spanjers both got huge raises.  Menke went from a base salary of $425K to $675K and Spanjers $275K to $400K.  Menke hasn’t been with Pinnacle for long at all, by the way.  The argument is that Menke and Spanjers will be filling in for the departing CFO.

I call bullshit.

The board and Menke knew what was going to happen and raised the salaries prior to bankruptcy.   They sure weren’t going to get approved for those kinds of massive raises after a bankruptcy filing.

It’s insulting to the staff of that airline, union or non-union, that their delivering themselves raises one week before a bankruptcy filing that will almost certainly find them going to those staff and asking for cost reductions.

Even American Airlines and Tom Horton didn’t have the guts to pull that stunt.

Filed under: Airline News by ajax
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