Comair IPO

[ILS2DH]

Here's another rumor/possibility - Dave M (former Comair owner) has been spotted alot around the GO lately. Maybe he's looking at buying it back. And why not? He sold it for 1.9bil and could probably get it back for a third of that or less. I'm sure he still has the cash.

I think an IPO would be great, but I doubt there are any investors out in the market just dying to get in the airline business, but who knows. I see more of a debt for equity swap with GECAP - they get 49% in exchange for some debt relief and restructure of DAL's aircraft leases.

 

[bvt1151]

Aren't there types of anti-trust regulations to prevent aircraft manufacturers from owning airlines? Reference Boeing and United.

 

[bvt1151]

FB said he received a call from JO about buying Mesa. FB's words to everyone in the cafeteria was that he told JO that he'd "kick the sh!t out of him if he tried to buy Comair." And that's coming from a former Air Force Academy boxer/football player. I'm sure he could do it. haha

I'd take a pay cut to see that!


"My CEO can beat your CEO up."

 

[standaman]

"My CEO can beat your CEO up."

Would make a cool bumper sticker as well.

 

[DGdaPilot]

If you've seen FB in real life, you too would be obliged to think he could do it.

As far as DM walking around the GO, you're not the first to say something about that. My biggest fear about that, though, would be whether or not FB would be kept in place. I hope he would.

 

[SpacemanSpiff]

???

You guys make it sound like everyone is/or should be lining up to buy Comair. Why would other regionals be so interested? With Comair's high labor costs they can't seem too attractive. The regional market is so cost competitive right now, and it is only going to get more so going forward. Somebody please explain why Comair is such an attractive buy?

 

[ILS2DH]

I'm not saying anyone is lining up to buy Comair. I'm just offering an opinion as to who might be interested, if anyone. Personally, I wouldn't put my money anywhere near the airlines. The oil companies are the ones making huge returns now - 30%+ ROE vs the airlines losing money - it's a no brainer.

As far as CMR labor costs, that's a bit of a myth anymore. COEX is on par with us right now, and maybe ahead depending on their profit sharing. And CHQ will catch up to us in the next year or so. Investors will be looking at costs down the road, so that's where our concessions come into play. The bigger picture is operating costs, and we're very competitive there. Even JG from DAL said our costs are some of the lowest in the industry. Take it for what it's worth. We're doing several things operationally to cut cost outside of labor.


bvt1151.....good question about the anti-trust laws. I'm not really sure. But GECAP is just a finance company, so that might change things.

 

[DGdaPilot]

Comair's strength? It's the people of the company. Management included.

 

[bvt1151]

Comair's strength? It's the people of the company. Management included.

That sounds so cliche`, but its very true in this case.

 

[FDJ2]

Comair's strength? It's the people of the company. Management included.

Except over the holidays.