Northwest Grounds More Regional Jets

Northwest grounds 15 of the 139 small jets Pinnacle leases from Northwest out of its Memphis hub.


Reed estimates the grounding of the 15 regional jets will reduce Pinnacle's fourth quarter revenue by 7 percent and profits by 10 percent to15 percent.

In the end, Neidl expects Pinnacle will do more flying for Northwest. But he said Northwest could really try to shave the operating profit margin it builds into flying contracts with regional carriers, aiming for margins as low as 5 percent.

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