Pinnacle Airlines to land in Minn. permanently next month

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Pinnacle Airlines Corp. is expected to leave its Tennessee headquarters by the end of May, the Memphis Business Journal reports.

A federal bankruptcy-court judge cleared the company last week to emerge from Chapter 11 protection as a wholly owned subsidiary of Atlanta-based Delta Air Lines Inc.

“The Bankruptcy Court’s approval of our plan of reorganization represents an important milestone in our restructuring,” spokesperson Joe Williams told the Journal. “Pinnacle Airlines is now free to emerge from Chapter 11 as a restructured airline and a wholly owned subsidiary of Delta Air Lines.”

The regional carrier announced earlier this year that it was relocating its corporate offices to vacant space leased by Delta at Minneapolis-St. Paul International Airport property. It's unclear how many of Pinnacle's 500 Memphis employees are making the move to the Twin Cities.

Pinnacle received $550,000 from the state of Minnesota in the form of a “forgivable” loan if the carrier moved 200 jobs to the state within two years of the move.

Last month, Pinnacle announced it was hiring 350 workers in Minnesota, including 100 flight attendants.

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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.

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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 directors at Pinnacle Airlines has eliminated Detroit from consideration for its potential new headquarters, the Commercial Appeal reports. The Memphis-based regional carrier is considering whether to move its home office to save money. Minnesota is the only other option still in contention.