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Pinnacle Airlines receives $550K from state to move headquarters to Minn.

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A huge financial incentive apparently factored into Pinnacle Airlines' decision to move its headquarters from Memphis, Tenn., to Minnesota, the Minneapolis-St. Paul Business Journal reports.

The airline, which announced the move this week, received $550,000 from the state of Minnesota in the form of a "forgivable" loan.

According to the Business Journal, the $550,000 would not have to be paid back, provided that Pinnacle moved 200 jobs to the state within two years of the headquarters move.

According to the Star Tribune, the Minnesota's Department of Employment and Economic Development agreed to reward Pinnacle the money.

Pinnacle, which is currently in Chapter 11 bankruptcy, is expected to become a subsidiary of Delta Airlines when it emerges from bankruptcy protection.

The regional air carrier will move into a vacant space leased by Delta Air Lines at Minneapolis-St. Paul International Airport by May.

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Pinnacle Airlines still weeks away from headquarters decision

Pinnacle Airlines Corp., which flies regional jets for Delta Air Lines, is still working its way through the bankruptcy process. A spokesman for the Memphis-based regional carrier tells the Pioneer Press the final report is several weeks. Pinnacle is exploring every opportunity to reduce costs, including whether to move its corporate headquarters to the Twin Cities.

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The board of Pinnacle Airlines Inc. is getting an update this week on whether to keep the company based in Memphis compared to moving its headquarters to the Twin Cities or Detroit, The Commercial Appeal reports. "We still have a lot of work to do before a decision is made," spokesman Joe Williams said.