Comair IPO

[I.P. Freley]

up to 100 of your RJs may be parked since GE has been ramming them down our throat due to their financing agreement.

Not knowing anything about the GE/Delta financing agreement, I still have to ask:

How is expecting the customer to pay for the airplanes they've ordered considered "ramming them down (their) throat"?

 

[Wacopilot]

Really? That's not what Grinstein said at Incommand two weeks ago.

General....... Is it true??? Am I reading this right???? when did you begin driniking Grinstein's coolaid? You sound like you bit the big one....... "Yeah, and Grinstein also said that I was gonna only have to take a 25% paycut this time.." I can her you now. Don't start believing everything you hear, that will get you in trouble...Ask the CMR pilots...or maybe just ask your MEC Chairman.

Waco

 

[General Lee]

Waco,


I read the notes. Whether or not it happens is up to one guy. I have no access to the boardroom, but I have big ears..... I am not giddy about any of this. I have watched DL go from a great airline to an airline on the brink. Not fun.


Bye Bye--General Lee

 

[RichO]

I don't know, I sorta agree with the original post. An IPO would actually be very beneficial for Delta. 51% ownership of Comair in stock, nice stuff to have in your back pocket when dealing with financing....Comair profits, stock rises..........Delta has more in it's back pocket to play with........I wouldn't discount the idea if I were you....right now, is a pretty decent market for IPOS.....of course, the market is entering a slight downward trend at the moment.....so who knows if the climate for IPOS will be ideal at the time Comair is an IPO.........food for thought....

 

[SpacemanSpiff]

I don't know, I sorta agree with the original post. An IPO would actually be very beneficial for Delta. 51% ownership of Comair in stock, nice stuff to have in your back pocket when dealing with financing....Comair profits, stock rises..........Delta has more in it's back pocket to play with........I wouldn't discount the idea if I were you....right now, is a pretty decent market for IPOS.....of course, the market is entering a slight downward trend at the moment.....so who knows if the climate for IPOS will be ideal at the time Comair is an IPO.........food for thought....

Help me understand this...Comair profits? Comair's profits come from a generous fee per departure contract with Delta, correct? When Delta declares bankruptcy, do you think that this contract will continue to be so generous? I could easily be missing something, but this does not make any sense to me.

 

[No Delay]

General -

I am not familiar with GE's financing at all, but I thought I read a post from you the other day that GE had an agreement that DAL would offer CMR up as an IPO if Delta went into BK.

Then, wouldn't it be very possible to see the IPO happening soon? Unless a deal with Mesa (or someone else) is really in the works.

 

[DGdaPilot]

Anyone here care to comment on why Mesa will not be buying Comair? You'll know if you were in the G.O.'s cafeteria about 2 weeks ago when FB was doing his Q and A period.

 

[FreedomAList]

Isn't Mesa paying those leases?

Yes.

But only until Delta does the BK dance. (it's a very fashionable dance lately)

 

[cl65capt]

Anyone here care to comment on why Mesa will not be buying Comair? You'll know if you were in the G.O.'s cafeteria about 2 weeks ago when FB was doing his Q and A period.

Care to expand on that for those of us that were not there?

 

[DGdaPilot]

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

 

[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.