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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