Memphis Working to Keep Pinnacle Airlines

MEMPHIS, Tenn. - City leaders are working to keep air passenger carrier Pinnacle Airlines Corp. from moving out of Memphis by trying to get the company to build a new corporate headquarters.

A move is a concern because Pinnacle officials have confirmed that Mississippi officials have made a generous offer for the Memphis-based air carrier to move its offices to Olive Branch. Pinnacle flies over 740 Delta Connection flights daily to 120 airports, employing more than 4,300 people in the process, according to its website.

To prevent a move, city officials have had conversations with private sector leaders in Memphis, as well as Tennessee Economic Development Commissioner Matt Kisber.
Paul Morris, the Center City Commission's new president, said he's spent about half his time working behind the scenes on getting Pinnacle into building an expanded corporate headquarters in downtown Memphis.

Memphis Mayor A C Wharton called keeping Pinnacle in Memphis an "all hands on deck" effort. Wharton has suggested federal incentives and participation from the state of Tennessee may be requested as part of the effort to keep Pinnacle in Memphis.

"We intend to be just as aggressive as others, if not more so," Wharton told The Daily News. "This is of dual importance to us. First, we want to keep Pinnacle in Shelby County, and we feel it to be critical to the continued development of downtown if Pinnacle is so inclined to move there. So we have a dual motivation for going after them aggressively."

Pinnacle has said it is looking at locations in downtown Memphis and near Memphis International Airport. However, no downtown site owner has made an offer.
The move would have to allow Pinnacle to consolidate operations into a single location, cutting operating and occupancy costs, the company said.

Glankler Brown PLLC's recent announcement that the law firm is vacating 39,000 square feet at One Commerce Square later this year seemed to renew interest in bringing Pinnacle to downtown.

Mark Jenkins of Commercial Alliance Management LLC, the firm that leases and manages One Commerce Square, told The Daily News last month there may be hope yet for a deal that brings Pinnacle to the tower.