Item 8.01 Other Events

Pinnacle Airlines Corp. (the "Company") has reached agreement with the Internal Revenue Service (the "Service") to resolve certain matters related to the Service's examination of the Company's federal income tax returns for calendar years 2003, 2004 and 2005. Previously, the Service had proposed a number of adjustments to the Company's returns totaling approximately $35 million of additional tax, plus accrued interest and penalties on these proposed adjustments.

The Company and the Service have agreed for the Company to pay approximately $3 million of additional income tax and accrued interest in settlement of all open tax matters for these years. With this agreement, the Service has completed its examination of the Company's federal tax filings for 2003, 2004 and 2005.

The Company will report a one-time after-tax gain within its first quarter 2009 results of approximately $15.4 million in connection with this settlement. This $15.4 million is comprised of $1.8 million ($2.9 million pre-tax) related to accrued interest and $13.6 million related to income tax expense.