Memphis-based Pinnacle Airlines Corp., parent company of Colgan Air, has filed for bankruptcy. Colgan currently serves airports in Trenton and Presque Isle, though it will soon cease its service.
Pinnacle filed for bankruptcy earlier this week, citing "increasing operating expenses, liquidity constraints, business integration delays and difficulties associated with combining our operations," according to Reuters. Rising fuel prices have led major airlines to cut back on regional service. Pinnacle, which has 8,000 employees, flies as Delta Connection, United Express and US Airways Express and operates more than 1,540 daily flights to 188 cities and towns.
Colgan in September announced it would cease its service at the Hancock County-Bar Harbor Airport and the Northern Maine Regional Airport once the U.S. Department of Transportation found new carriers, which it did earlier this year. The company cited reduction of service at its Boston hub as part of a restructuring plan. Officials at the Presque Isle airport said the bankruptcy filing won't impact the airport, according to the Bangor Daily News. Colgan also previously served the Augusta State Airport until the DOT picked lower-cost Cape Air in 2010.