Related Party Transactions and Outside Related Director Information

Pinnacle Airlines Corp. (PNCL)

4/11/2006 Proxy Information

Northwest is a related party of the Company. The Company generates substantially all of its revenue from its Airline Services Agreement (“ASA”) with Northwest under which the Company uses the “NW” two-letter designator code in displaying its schedules on all flights in the automated airline reservation systems used throughout the industry. Under this agreement, the Company uses the name “Northwest Airlink.” Northwest leases the Company all of its regional jets, and is the owner of 2,492,060 shares of the Company’s Common Stock and the Company’s Series A Preferred Stock, which, among other things, provides Northwest the right to annually select two of the Company’s directors for one-year terms. Those two positions remain vacant at this time. As noted in the earlier discussion of outstanding shares and voting rights, certain actions may not be taken by the Company’s Board of Directors without the approval of Northwest.

On September 14, 2005, Northwest filed for protection under Chapter 11 of the United States Bankruptcy Code. Pursuant to the terms of a ground handling agreement with Northwest, the Company provides certain ground handling functions to Mesaba Aviation, Inc. (“Mesaba”), another regional airline that also provides airline capacity to Northwest. Northwest owns 27.5% of the common stock of MAIR Holdings, Inc., the holding company of Mesaba. On October 13, 2005, Mesaba filed for bankruptcy protection. The Company is a claimant in each of these bankruptcy cases.

As discussed more fully in the Company’s annual report on Form 10-K, Northwest’s bankruptcy filing has had a profound impact on the Company. As a result of the automatic stay imposed by the bankruptcy court, the Company did not receive payments totaling approximately $51.3 million (net of amounts owed to Northwest) related to services provided to Northwest prior to its bankruptcy filing. In September 2005, Northwest requested that the Company remove 15 CRJ aircraft from service. These aircraft were removed from the fleet effective November 1, 2005, reducing the total operating CRJ fleet from 139 to 124 aircraft. Northwest has subsequently rejected its primary lease agreements with third party lessors on these 15 aircraft, and returned the aircraft to such lessors. The Company has requested that Northwest return $2.6 million in security deposits related to the 15 aircraft, although Northwest has not done so. Further, the Company expects that Northwest will request substantial modifications to the ASA as a condition to any agreement to assume the ASA during its bankruptcy reorganization.

The Company leases 11 Saab turboprop aircraft and two spare engines from a third party that, pursuant to the terms of the ASA with Northwest, are subleased to Mesaba. As part of its reorganization proceedings, Mesaba has rejected the subleases and returned the aircraft and spare engines to the Company. The Company currently has possession of the aircraft and is evaluating options to minimize the negative financial impact of their return by subleasing them to another operator. The ASA provides that the Saab rental expenses, net of sublease rental income, are treated as a reimbursable expense from Northwest in the current period to which they relate. The Company has requested that Northwest pay for the ongoing Saab rental expenses as part of the monthly payments it makes to the Company under the ASA. Northwest has indicated that it does not intend to pay the Company these amounts. The Company will continue to pursue all claims related to the Saab aircraft that it may have against both Northwest and Mesaba.

For the years ending December 31, 2005, 2004 and 2003, the Company recorded revenue of approximately $3,915,000 $2,111,000 and $6,010,000 respectively, for providing these services to Mesaba. As provided in the agreement, certain amounts earned by the Company in providing these services are paid by Northwest. Of the amounts noted above for other revenue for the years ending December 31, 2005, 2004 and 2003, approximately $2,230,000, $950,000 and $2,020,000, respectively, were paid by Northwest. The Company obtains ground handling and landing fee services from Mesaba at certain cities where Mesaba has existing operations. Ground handling services obtained from Mesaba for the years ended December 31, 2005, 2004 and 2003 totaled $16,878,000, $15,621,000 and $13,196,000, respectively.