Comair Risks Losing Planes Without Pilot Concessions
Aviation Daily11/03/2003
Comair's competitive bids for future Delta Connection flying that could increase the carrier's fleet by about 50% are in jeopardy because a Nov. 1 deadline is likely to pass without pilot concessions needed to underbid carriers with lower rates, airline management told flight crewmembers this week.
The regional's pilots, represented by the Air Line Pilots Association (ALPA), met with management in September to discuss Comair's growth. Union leaders told Comair executives Oct. 24 they couldn't meet deadlines imposed by Delta Connection to negotiate changes to the current contract.
In a memo to Comair flight crewmembers, airline VP-Flight Operations Don Osmundson explained the carrier has until tomorrow to change the collective bargaining agreement; after that time, a request for proposal (RFP) would give other airlines a chance to bid for the aircraft.
If Comair could get its costs in line by the November deadline, the airline is eligible to receive 45 "growth" aircraft, as well as confirmation of eight Bombardier CRJ700s scheduled for delivery next year. About 30 Delta Connection aircraft would also have been transferred to Comair. Those 30 planes might be the Fairchild Dornier 328JETs flown as Delta Connection by Atlantic Coast Airlines. Comair flies about 150 Bombardier CRJs, and its fleet would rise to about 233 by 2007 with the additional planes.
Failure to meet the Nov. 1 deadline means Comair must bid on those aircraft. Osmundson said that several carriers have signed 70-seat rate agreements that are significantly lower than Comair's and that it's "no secret" those airlines are looking for opportunities to fly Delta Connection aircraft. UBS Warburg estimates Horizon's 70-seat hourly rates are just under $110, with Comair's a bit over $105. Estimated rates at Republic Airways Holdings, parent of Chautauqua, are about $90 per hour. Chautauqua's pilots recently approved a contract that sets 70-seat rates. Chautauqua currently flies a mix of 37- to 50-seat Embraer regional jets. Mesa's 70-seat rates are about $85 an hour.
A Comair spokesman couldn't comment directly on the memo but said the carrier has a strong relationship with ALPA and the International Brotherhood of Teamsters (IBT), representing flight attendants, and works with union leaders to address issues to remain competitive. -LR
Aviation Daily11/03/2003
Comair's competitive bids for future Delta Connection flying that could increase the carrier's fleet by about 50% are in jeopardy because a Nov. 1 deadline is likely to pass without pilot concessions needed to underbid carriers with lower rates, airline management told flight crewmembers this week.
The regional's pilots, represented by the Air Line Pilots Association (ALPA), met with management in September to discuss Comair's growth. Union leaders told Comair executives Oct. 24 they couldn't meet deadlines imposed by Delta Connection to negotiate changes to the current contract.
In a memo to Comair flight crewmembers, airline VP-Flight Operations Don Osmundson explained the carrier has until tomorrow to change the collective bargaining agreement; after that time, a request for proposal (RFP) would give other airlines a chance to bid for the aircraft.
If Comair could get its costs in line by the November deadline, the airline is eligible to receive 45 "growth" aircraft, as well as confirmation of eight Bombardier CRJ700s scheduled for delivery next year. About 30 Delta Connection aircraft would also have been transferred to Comair. Those 30 planes might be the Fairchild Dornier 328JETs flown as Delta Connection by Atlantic Coast Airlines. Comair flies about 150 Bombardier CRJs, and its fleet would rise to about 233 by 2007 with the additional planes.
Failure to meet the Nov. 1 deadline means Comair must bid on those aircraft. Osmundson said that several carriers have signed 70-seat rate agreements that are significantly lower than Comair's and that it's "no secret" those airlines are looking for opportunities to fly Delta Connection aircraft. UBS Warburg estimates Horizon's 70-seat hourly rates are just under $110, with Comair's a bit over $105. Estimated rates at Republic Airways Holdings, parent of Chautauqua, are about $90 per hour. Chautauqua's pilots recently approved a contract that sets 70-seat rates. Chautauqua currently flies a mix of 37- to 50-seat Embraer regional jets. Mesa's 70-seat rates are about $85 an hour.
A Comair spokesman couldn't comment directly on the memo but said the carrier has a strong relationship with ALPA and the International Brotherhood of Teamsters (IBT), representing flight attendants, and works with union leaders to address issues to remain competitive. -LR
