Pinnacle Airlines Corp. shares fell more than 25 percent Tuesday after it disclosed that Delta Air Lines Inc. plans to cancel its flying contract with the regional carrier, citing poor on-time performance.
Northwest Airlines Corp., Pinnacle's biggest customer, has no plans to change its relationship with Pinnacle. However, Delta is acquiring Northwest, worrying investors about what that might mean for Pinnacle's future if the contract termination sticks.
Memphis, Tenn.-based Pinnacle called the move against it by Delta "wrongful," saying its on-time performance has been hurt by factors beyond its control. It said the operational schedule created by Delta is a key factor affecting on-time performance. |
