Continental Hires Pinnacle to Fly Turboprops out of Newark

MEMPHIS, Tenn. (AP) -- Pinnacle Airlines Corp. said Monday it will fly 15 turboprop planes for Continental Airlines Inc. under a new regional flying agreement.

Financial terms of the 10-year deal were not disclosed. Under the agreement, Pinnacle will buy the aircraft, and Continental will pay for fuel and handle scheduling.

Pinnacle said its Colgan Air subsidiary will fly the 74-seat Bombardier Q400 aircraft mostly from Continental's Newark, N.J., hub. The planes will operate as Continental Connection.

Pinnacle shares hit a new 52-week high of $18.49 in morning trading on the Nasdaq before slipping back to $18.30, up 56 cents or 3.2 percent.

Continental lost a penny at $42.24 on the New York Stock Exchange.

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