Pinnacle scrapping ground-handling division, hundreds losing jobs

MEMPHIS, Tenn. (AP) -- Pinnacle Airlines Corp. is scrapping a 900-employee division that provides ground-handling services to 16 airlines at 11 airports around the country.

The move means that 400 workers in Memphis will lose their jobs, including 330 part-time positions, 68 full-time jobs and 10 managerial positions.

The Commercial Appeal reports the company gave notice Monday to PinnPro Professional Ground Services workers that Pinnacle would wind down operations by September.

The move is part of a bankruptcy-related restructuring of the Memphis-based company. Pinnacle sought bankruptcy protection in April. The company recently announced that about 450 pilots would be furloughed as part of Pinnacle's overall downsizing.

The company issued a statement Tuesday saying eliminating the division was a difficult decision, but necessary for Pinnacle to come out of Chapter 11 bankruptcy.

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