September 3, 2004
Comair Team,
After nearly eight months of relative status quo as the airline industry flounders with costs too high and revenues too low, the last months of 2004 may finally yield critical events to reverse the major financial losses and lead our industry into recovery.
United received another extension to put together their bankruptcy recovery plan, although many experts believe this may be their last chance. US Airways' ownership has announced liquidation is a real possibility unless cost restructuring efforts achieve targets designed to make it a viable entity. Next week, our parent and partner Delta Air Lines will announce elements of its strategic review, which will outline the steps it will take to survive. The first part of its transformation was introduced recently with the rollout of the SimpliFares program for the Cincinnati market. This program underscores the strategic importance of this market and hub, where we are a key element of Delta's operation.
As Delta works to achieve viability without Chapter 11 protection, it is aggressively pursuing a restructuring plan based on a customer-service focused culture, excellent operational reliability and efficient cost structure. We are focused on the same things, with ongoing initiatives in all these areas. For customers, we are continuing to standardize procedures for Delta brand consistency, enhancing training for all customer contact groups and deploying new technology in our field locations. Operationally, we are addressing the increased Northeast operations with efforts such as establishing minimum ground times, minimizing crew swaps in that region, developing better turn time measures focused on recoverability and reviewing maintenance and spare aircraft compliments. And as for cost efficiency, we have reduced our cost structure by nearly $200 million since 2001 through a combination of initiatives that touch every area of our business and the growth driven by the last 70 aircraft deliveries.
Delta's leadership has said they must come out of the transformation process positioned for long-term viability that allows them to grow their company. All of you are probably familiar with my belief that businesses must grow or they will surely begin to shrink. I firmly believe that our company must again position itself for growth, even though that may require unpopular but necessary steps to address cost disadvantages that prohibit us from being competitive. Although many areas of our company have made a tremendously positive impact to our cost structure, it is still not enough to ensure we can be competitive in the marketplace. As a company, we can not ask efficient, cost competitive areas of our operation to subsidize non-competitive areas and expect long-term success. We should expect that as Delta makes critical decisions to survive, their leadership will look closely at the costs of their regional feed and we will be impacted by Delta's transformation. The size and scope of that impact will be determined by many of the decisions we make today.
As we work through the changes that the coming months will certainly bring, it is worth noting that
Comair people have a well-deserved reputation as resilient and capable aviation professionals who weather challenges well - whatever they may be. We have all worked together to build that reputation. We must now work together to keep it.
Thank you for your hard work and dedication in continuing to take care of our customers, our airline and each other.
-Randy
4th paragraph seemed to spell it out to me. Good luck guys.
Comair Team,
After nearly eight months of relative status quo as the airline industry flounders with costs too high and revenues too low, the last months of 2004 may finally yield critical events to reverse the major financial losses and lead our industry into recovery.
United received another extension to put together their bankruptcy recovery plan, although many experts believe this may be their last chance. US Airways' ownership has announced liquidation is a real possibility unless cost restructuring efforts achieve targets designed to make it a viable entity. Next week, our parent and partner Delta Air Lines will announce elements of its strategic review, which will outline the steps it will take to survive. The first part of its transformation was introduced recently with the rollout of the SimpliFares program for the Cincinnati market. This program underscores the strategic importance of this market and hub, where we are a key element of Delta's operation.
As Delta works to achieve viability without Chapter 11 protection, it is aggressively pursuing a restructuring plan based on a customer-service focused culture, excellent operational reliability and efficient cost structure. We are focused on the same things, with ongoing initiatives in all these areas. For customers, we are continuing to standardize procedures for Delta brand consistency, enhancing training for all customer contact groups and deploying new technology in our field locations. Operationally, we are addressing the increased Northeast operations with efforts such as establishing minimum ground times, minimizing crew swaps in that region, developing better turn time measures focused on recoverability and reviewing maintenance and spare aircraft compliments. And as for cost efficiency, we have reduced our cost structure by nearly $200 million since 2001 through a combination of initiatives that touch every area of our business and the growth driven by the last 70 aircraft deliveries.
Delta's leadership has said they must come out of the transformation process positioned for long-term viability that allows them to grow their company. All of you are probably familiar with my belief that businesses must grow or they will surely begin to shrink. I firmly believe that our company must again position itself for growth, even though that may require unpopular but necessary steps to address cost disadvantages that prohibit us from being competitive. Although many areas of our company have made a tremendously positive impact to our cost structure, it is still not enough to ensure we can be competitive in the marketplace. As a company, we can not ask efficient, cost competitive areas of our operation to subsidize non-competitive areas and expect long-term success. We should expect that as Delta makes critical decisions to survive, their leadership will look closely at the costs of their regional feed and we will be impacted by Delta's transformation. The size and scope of that impact will be determined by many of the decisions we make today.
As we work through the changes that the coming months will certainly bring, it is worth noting that
Comair people have a well-deserved reputation as resilient and capable aviation professionals who weather challenges well - whatever they may be. We have all worked together to build that reputation. We must now work together to keep it.
Thank you for your hard work and dedication in continuing to take care of our customers, our airline and each other.
-Randy
4th paragraph seemed to spell it out to me. Good luck guys.
