utahpilot
Seeing the light
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- Nov 27, 2001
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http://www.cincypost.com/2004/01/01/comair010104.html
By Alexander Coolidge
Post staff reporter
Comair Inc. logged a $42.4 million operating profit on $268 million in revenues during the third quarter of 2003, government statistics show.
The regional airline and subsidiary of Delta Air Lines has been under pressure by its corporate parent to cut costs in order to win new planes and routes, yet it logged a 15.8 percent operating profit margin during the fall period. Operating profit is a key statistic used to size up fundamental profitability before interest payments and taxes.
During the same period, Delta had an operating loss of $175.2 million on $2.9 billion in revenue from its mainline operations, according to the Bureau of Transportation Statistics at the federal Department of Transportation. The Atlanta-based carrier had a negative operating margin of 6 percent.
J.C. Lawson, chairman of the Comair pilots union, said the report shows Comair runs an efficient operation. Responding to company proposals to cut pilots' salaries, Lawson and other pilots with the Comair chapter of the Air Line Pilots Association told management last month it should consider merging Comair with Delta's other regional subsidiary, Atlantic Southeast Airlines in Atlanta.
"I think we have a very lean and mean company and we've fought to keep it that way," he said. "It's more so than ever."
Lawson said the pilots were sticking to their guns, insisting management look at the merger of the regionals before they entertained pay-cut talks.
Comair's operating profit margin has improved since a fourth quarter loss last year. The regional carrier's margin was 5.6 percent and 13.6 percent in the first and second quarters, respectively.
During the third quarter, Atlantic Southeast booked a $25.9 million operating profit on $203.7 million in revenue and a 12.7 percent operating profit margin. The airline's operating margin has consistently been in double digits this year, but was down from 15.3 percent in the second quarter.
Comair spokesman Nick Miller declined to discuss the financial statistics specifically but said the company was concerned about maintaining growth and profitability for the future.
"Past results don't guarantee future performance," he said. "Securing growth is key to maintaining profitability in the future."
Miller added that Comair has been concerned about competition from other regional carriers not included in the government report, such as Chautauqua, Mesa and Pinnacle airlines. He said those "emerging competitors" had better cost structures, which has Comair looking at its expenses.
Issued last week, the transportation report is significant because it breaks out Delta's regional operating results from its regional subsidiaries.
Comair officials decried the inability to win wage concessions from their pilot and flight attendant unions as costing them an opportunity this fall to expand its 150-jet fleet by 50 percent in the next few years. Delta approached Comair officials with the chance to win the flying rights to nearly 75 new planes, if they could cut costs. Delta solicited bids from several carriers when Comair couldn't deliver the concessions.
By Alexander Coolidge
Post staff reporter
Comair Inc. logged a $42.4 million operating profit on $268 million in revenues during the third quarter of 2003, government statistics show.
The regional airline and subsidiary of Delta Air Lines has been under pressure by its corporate parent to cut costs in order to win new planes and routes, yet it logged a 15.8 percent operating profit margin during the fall period. Operating profit is a key statistic used to size up fundamental profitability before interest payments and taxes.
During the same period, Delta had an operating loss of $175.2 million on $2.9 billion in revenue from its mainline operations, according to the Bureau of Transportation Statistics at the federal Department of Transportation. The Atlanta-based carrier had a negative operating margin of 6 percent.
J.C. Lawson, chairman of the Comair pilots union, said the report shows Comair runs an efficient operation. Responding to company proposals to cut pilots' salaries, Lawson and other pilots with the Comair chapter of the Air Line Pilots Association told management last month it should consider merging Comair with Delta's other regional subsidiary, Atlantic Southeast Airlines in Atlanta.
"I think we have a very lean and mean company and we've fought to keep it that way," he said. "It's more so than ever."
Lawson said the pilots were sticking to their guns, insisting management look at the merger of the regionals before they entertained pay-cut talks.
Comair's operating profit margin has improved since a fourth quarter loss last year. The regional carrier's margin was 5.6 percent and 13.6 percent in the first and second quarters, respectively.
During the third quarter, Atlantic Southeast booked a $25.9 million operating profit on $203.7 million in revenue and a 12.7 percent operating profit margin. The airline's operating margin has consistently been in double digits this year, but was down from 15.3 percent in the second quarter.
Comair spokesman Nick Miller declined to discuss the financial statistics specifically but said the company was concerned about maintaining growth and profitability for the future.
"Past results don't guarantee future performance," he said. "Securing growth is key to maintaining profitability in the future."
Miller added that Comair has been concerned about competition from other regional carriers not included in the government report, such as Chautauqua, Mesa and Pinnacle airlines. He said those "emerging competitors" had better cost structures, which has Comair looking at its expenses.
Issued last week, the transportation report is significant because it breaks out Delta's regional operating results from its regional subsidiaries.
Comair officials decried the inability to win wage concessions from their pilot and flight attendant unions as costing them an opportunity this fall to expand its 150-jet fleet by 50 percent in the next few years. Delta approached Comair officials with the chance to win the flying rights to nearly 75 new planes, if they could cut costs. Delta solicited bids from several carriers when Comair couldn't deliver the concessions.
