Comair canceling interviews

[Rabble]

So folks -- Who is buying Comair?

Let's not fool ourselves. Comair has been sold. The question is, to whome?

Republic? Mesa? Horizon? Who has the ability to absorb such a large airline and its 2000 pilots?

 

[jws717]

General electric? that rumor has been floating around......

 

[fugghedabowdit]

David Mueller

 

[DDpaysoff]

General electric? that rumor has been floating around......

I have heard that Delta used Comair assets as collateral for the debt restructuring with GE and that GE will receive those assets if Delta Declares Ch. 11. GE hedged themselves so they would get payment in the form of what I assume to be aircraft instead of going through the court system and battling like everybody else to get paid.

I wouldn't be surprised at all if there is a signifigant downsizing of the airline when delta files. Oh, well, that's the business I guess.

 

[RJ Bum]

David Mueller

That would be funny. Some people flip houses, he flips airlines.

 

[Spinplate]

After the ASA/Skywest deal, Mesa will have the most cash between all the regional airlines. 300million cash money!!!

 

[jws717]

well if it makes anyone feel better the fuel at the corner station went down 10cents from last night. i hope thats a trend

 

[bigshooter]

I would think there would be some rjs parked next to those 737 200s and 767s that will get parked in a chap 11 filing.

 

[Rogue5]

After the ASA/Skywest deal, Mesa will have the most cash between all the regional airlines. 300million cash money!!!

But SkyWest is still sitting on a huge pile of cash, more than most now think...

Delta Sells ASA To SkyWest, Faces Liquidity Pressures This Fall
Aviation Week & Space Technology
08/22/2005, page 44

David Bond
Washington

Sale of ASA to SkyWest will raise cash, but maybe not enough; credit-card contract, loan covenants, pilot retirements test liquidity

Printed headline: Delta's Dire Straits

Delta Air Lines' $425-million agreement to sell Atlantic Southeast Airlines (ASA) to SkyWest Inc. may keep the third-largest U.S. carrier out of Chapter 11 reorganization, but its prospects are highly uncertain and, at best, its brush with bankruptcy will be the closest yet.

Adding $350 million in early proceeds from the ASA sale to the $1.7 billion in ready cash Delta had at the end of the second quarter will leave the carrier with little if any room to spare during the second half of 2005. As described in an Aug. 15 quarterly filing to the Securities and Exchange Commission, Delta expects "a substantial net loss" for the second half, with about $2 billion in payments on aircraft leases, interest and debt maturities, capital expenses and pension-plan contributions.

WORSE, THREE MAJOR factors beyond the $2 billion threaten to tip Delta into insolvency. Its current and prospective future contracts for Visa and MasterCard processing may establish as much as $750 million in cash reserve requirements; liquidity covenants in its principal credit agreements require that it maintain at least $1 billion in unrestricted cash at all times; and its pilots are again retiring early at high rates.

Delta has struggled to stay out of Chapter 11--its closest approach before now came last year, before its pilots agreed to contract concessions that reduced costs and increased revenues by $1 billion per year. This time it's worse. "If our liquidity declines to an unacceptably low level or we conclude that a competitive cost structure cannot be achieved through an out-of-court reorganization, we will need to seek to restructure under Chapter 11 of the U.S. Bankruptcy Code," the carrier told the SEC.

There is less benefit for Delta in selling ASA, one of its two regional subsidiaries, than the price tag suggests. The carrier hopes to close the deal in September, at which point it would receive $330 million of the purchase price and $20 million in aircraft deposits, for a total of $350 million. But under its financing agreements with GE Commercial Finance and other lenders, $100 million would be skimmed off to reduce its debt.

The remaining $95 million from the purchase, plus $30 million more in aircraft deposits, totaling $125 million, might never come Delta's way at all. It will be due four years after closing, provided that Delta stays out of Chapter 11 that long. If Delta files for Chapter 11, SkyWest will owe the money if Delta retains Delta Connection regional service agreements with ASA and SkyWest, which are extended through 2020 as part of the purchase deal. But SkyWest will keep the money if Delta sheds the agreements in bankruptcy proceedings.

 

[viper548]

Looks like SKW still has $300M+ in cash

 

[twobits]

looks like delta will still have a bunch of cash still too, well over a billion especially after the ASA sale. what makes people so sure that they will declare bankruptcy? don't they still have 18 mil stock warrants on priceline stock at less than a dollar per share. Doesn't Delta still hedge fuel.... just not jet A? and then, how are these two things posted on the balance sheet? at fair market value..... well who decides what fair market value is? The sky is not falling on Delta as fast as people think it is, they still have options of which one is to sell Comair. If this happens then it means they are running out of options fast or they are about to merge with another airline. I could see Delta merging with Continental and if that is the case then Delta would have to integrate Comair with the transaction because of language in Comair's LOA. There would be no problem with this but it adds a dimension to the merger.

back to class cancellations, if I gather all of the information correctly there have been no class cancellations just class downsizes of which some people will have to swim longer. If this was not the case, why would they publish this information in a monthly bid packet?

 

[Caveman]

"They did however ask the Comair MEC about preferencial hiring on the bottom of Comair's list, and they wanted DOH on Delta's, so it was not agreed upon."

Absolute BS. That conversation NEVER happened. You must be getting your talking points from General Lee.

 

[DDpaysoff]

looks like delta will still have a bunch of cash still too, well over a billion especially after the ASA sale. what makes people so sure that they will declare bankruptcy? don't they still have 18 mil stock warrants on priceline stock at less than a dollar per share. Doesn't Delta still hedge fuel.... just not jet A? and then, how are these two things posted on the balance sheet? at fair market value..... well who decides what fair market value is? The sky is not falling on Delta as fast as people think it is, they still have options of which one is to sell Comair. If this happens then it means they are running out of options fast or they are about to merge with another airline. I could see Delta merging with Continental and if that is the case then Delta would have to integrate Comair with the transaction because of language in Comair's LOA. There would be no problem with this but it adds a dimension to the merger.

back to class cancellations, if I gather all of the information correctly there have been no class cancellations just class downsizes of which some people will have to swim longer. If this was not the case, why would they publish this information in a monthly bid packet?

Yeah, you're right. Hey, do you want some of my delta stock? I'll give you a great deal on it.

 

[jetflyer]

I heard yesterday, MESA WILL BUY COMAIR. ANNOUNCEMENT WEDNESDAY, is what I heard.

Jet

 

[DGdaPilot]

What kind of fool thinks that Comair can be bought for a mere $300 million?

 

[bvt1151]

What kind of fool thinks that Comair can be bought for a mere $300 million?

You don't buy airlines for straight cash. With a variety of outside investments, stock offerings, financing agreements with Delta, etc, Mesa could very easily buy Comair for $6-700 million...or more.

 

[RP170]

CHQ is going to feel a little pain to as Freedom is slowly going to start replacing their 145 flying.

There will definitely be an increase in 170 and possibly 190 flying at CHQ/Shuttle America for DCI when Delta files. That's what we've heard.

 

[Geronimo4497]

When is Parker Brothers going to put out the Delta Monopoly Set? Do not pass go, do not collect............

 

[Spinplate]

If Delta does file...... all contracts can be terminated. ASA routes bye bye!! Skywest flushes over 300million cash down the drain. They will try and do it for cheaper. Mesa ...or Freedom I should say won the contract out of Orlando because they can offer the same product for a smaller price. If they see that as a way to save even more money......well in bankruptcy court, anything goes, and Mesa could get even more routes.........the ones that ASA,Comair,Skywest,etc. currently fly. That would be the worst scenario, but possible. Its a bidding war to see who can do it for the cheapest safely.

 

[viper548]

Read the part about the ATL gates in the SKW-ASA deal

 

[spinproof]

What was the date on that letter and what was the position of the CMR MEC prior to that date? Could you post that letter?

Your penchant(and several others including the General) for forgetting facts surrounding this issue is remakable. Comair pilots nerver said Delta furloughees weren't welcomed. There was one simple request that if you wish to work at Comair that you resign your seniority number . This was made at the behest of the comair MEC and NOT THE PILOT GROUP!

Somehow the fact that the majority of Comair pilots like where they work and consider it a career position is completely lost on you. Otherwise you would recognize why the MEC made this request. A request which was not without merit considering the facts but one with which I did not personally agree.

You seem to forget how your pilot group turned its' back on the Comair group. You seem to forget that while the paradigm was shifting in this industry you and your pilot group forged on with what it and ALPA thought was the great equalizer in numerous industry scope clauses. Doing this while ignoring two great evils. The companies ability to "whipsaw" pilot groups and the biggest bane of all "Code share"!

One would think you and the General would eventually get over the blame game. Then again everyone in peril seems to blame someone else for problems they brought on themselves. One look at the news from NO will verify that!

 

[FDJ2]

Comair pilots nerver said Delta furloughees weren't welcomed. There was one simple request that if you wish to work at Comair that you resign your seniority number . This was made at the behest of the comair MEC and NOT THE PILOT GROUP!

So in your world the CMR MEC doesn't represent the CMR pilot group.

When did the CMR MEC change its position on demanding seniority resignation and why?

 

[Caveman]

Spinproof,

I know you are trying to help but please get the facts right. Our MEC never requested that anyone resign their seniority. We have always welcomed furloughees from any airline. Our COMPANY had a long standing policy of requiring seniority resignation from ALL furloughed pilots, not just DAL. Sometimes they enforced it, sometimes they didn't. Our MEC and the pilots had no say in the matter.

A couple of years back the DAL MEC approached our MEC to inquire about the resignation policy. He wanted our support in trying to get it changed. Our MEC said fine, but while you are here let's talk about a few things. The response from the DAL MEC was basically sit down, be quiet and do what we tell you or we'll broadcast to the world that the CMR pilots are preventing DAL furloughees from getting hired.

Last year or so the CMR MEC did send a letter to all concerned stating clearly that we did and always have supported the hiring of DAL furloughees. GL and his ilk don't like the facts so they keep up the false drumbeat that CMR pilots prevented DAL furlougheees from getting hired at CMR.

 

[FDJ2]

Last year or so the CMR MEC did send a letter to all concerned stating clearly that we did and always have supported the hiring of DAL furloughees.

Any chance you could post that letter?

12-06-2002, 16:00 #1

snowback

Registered User

DAL MEC meets Comair MEC

From a recent DALPA Code-a phone message

Item two. At its October meeting, the (Delta) MEC passed a resolution directing the MEC Chairman to meet with the Comair MEC to pursue a reciprocal preferential hiring policy for furloughed Delta pilots at Comair and for Comair pilots at Delta. This week, MEC Chairman Capt. Will Buergey met with the Comair MEC Chairman in Cincinnati to discuss this issue further. The Comair MEC Chairman stated that his MEC administration does not support the hiring of furloughed Delta pilots at Comair. ASA management, at the ASA MEC’s request, has already hired furloughed Delta pilots, who start at the bottom of the airline’s seniority list and retain their recall rights at Delta.



12-06-2002, 16:13 #2

ACE

Registered User




It's not going to happen. Comair management and the Comair pilot group do not want the Delta pilots to come over and work with us. The only way it could happen is if Delta management says too take the Delta pilots. The Comair pilots are ready to cause chaos if we are made to do this against our will. I do not want to see any Delta pilot furloughed, but for them to come to Comair is a conflict of interest. For all you Delta pilots, you guys can call me an ass all you want for saying this, but it is fact.

 

[cmrflyer]

I wounder if the Delta MEC put his spin on the conversation,or if that is exactly as it happened. HMMMM I wonder.

I would imagine if you read what the Comair MEC said happen in this meeting there might be a slight difference in the two accounts. HMMMM I wonder.

You better just keep on believing everything you read. Never, I repeat, never think for yourself.

 

[bvt1151]

FDJ,


Check your dates on that code-a-phone...and the source.
Your quote actually enhances Caveman's argument:

The response from the DAL MEC was basically sit down, be quiet and do what we tell you or we'll broadcast to the world that the CMR pilots are preventing DAL furloughees from getting hired.

This is exactly what he's done, and you guys bought it hook, line and sinker. You are so content to believe what is fed to you that you refuse to search for the truth. You were lied to, plain and simple. I understand you think you need to blame somebody for Delta's problems, but anybody with any logical thought process knows that Comair is not your enemy. What's worse, is that you know its true, but still want to believe Comair is the bad guy.

What's so infuriating about this is that the Delta MEC said point blank that he was going to do that and that there was no way we could stop him. Why was he successful? Because some pilots are so eager to pick a fight that they're not interested in whether or not the allegations were true.

I guess its easier to maintain a lie than to accept that your so-called "enemy" over the last few years isn't really as bad as you've been told.

 

[Caveman]

FDJ2,

I'll try to find the letter and post either a copy or a link.

Is your first reference from Snowback a direct quote from the MEC message or is it a synopsis with his own interpretation that our MEC said that? If it's a direct quote I will personally challenge our MEC to respond because we (I) have always been led to believe that we supported hiring DAL furloughees.

Your second reference from Ace is his own opinion on what he and other CMR pilots think. That don't make it so.

 

[FDJ2]

I would imagine if you read what the Comair MEC said happen in this meeting there might be a slight difference in the two accounts. HMMMM I wonder.

What exactly was the CMR MEC's response. Could you post it?

 

[FDJ2]

FDJ2,

I'll try to find the letter and post either a copy or a link.

That would be greatly appreciated. FYI- that was a quote from the code a phone.

 

[RP170]

If Delta does file...... all contracts can be terminated. ASA routes bye bye!! Skywest flushes over 300million cash down the drain. They will try and do it for cheaper. Mesa ...or Freedom I should say won the contract out of Orlando because they can offer the same product for a smaller price. If they see that as a way to save even more money......well in bankruptcy court, anything goes, and Mesa could get even more routes.........the ones that ASA,Comair,Skywest,etc. currently fly. That would be the worst scenario, but possible. Its a bidding war to see who can do it for the cheapest safely.

There will be a CHQ 170 base in MCO and FLL for Delta.