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Comair to lose Aircraft in Chap 11??

Propsync

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Who knows. It could happen. MESA's starting in OCT. with those 30 or so ERJ's. Makes it look like some CRJ's would be expendable if Delta downsizes a lot. I hope not.

Every year, since I started in this damn business, has gotten worse and worse. 2005 is no exception, with yesterdays filings, makes 2006 a lock to be worse than I could have imagined. Good luck to all.
 

RJ Bum

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Granted, this is a VERY vague letter.

September 14, 2005
Dear Valued Aircraft Lessors, Lenders and Trustees:
As you may have heard, Delta Air Lines and its subsidiaries have voluntarily filed
for reorganization under Chapter 11 of the U. S. Bankruptcy Code. We have
taken this action to address our financial challenges, enhance our competitiveness
and achieve long-term viability. ..' '
During the last year, we have developed and implemented a transfonnation plan
focused on making Delta a simpler, more efficient and cost-effective airline. The
considerable benefits we are realizing under this plan, however, are being
outpaced and masked by historically high fuel prices and other factors. At the
same time, we have been limited in our ability to increase fares to offset the
higher filel costs because of competitive market challenges. Reorganizing under
Chapter 11 provides us with additional time and flexibility to expand our
transfonnation plan and move Delta towards a more secure future.
Regrettably, we cannot afford to retain all the aircraft currently in the Delta and
Comair fleets at their current rates, nor will we require the use of all aircraft
currently in the fleets. We have no choice but to reduce the size and complexity
of the fleets, and to make substantial reductions in the cost of the aircraft which
we retain. Additionally, to address our critical need for liquidity in the short term,
and subject to the requirements of the Bankruptcy Code, we plaIt to make only
very few payments when due of aircraft rent and mortgage principal and interest
payments during the sixty-day Section 1110 period.
We have been developing a comprehensive plan which re-values aircraft based on
current values, taking into account required maintenance, the need to phase out
older types and desired fleet efficiencies. We will be sending proposals to many
of our aircraft lessors, lenders and trustees soon. To ensure that you have
sufficient time and information to evaluate and respond to these proposals, we
recommend that any party having an interest in a Delta or Comair aircraft
communicate with one of the contacts listed on the attachment, providing us with
specific infonnation about the aircraft in which you hold an interest, the nature of
that interest and your contact infomlation. We will rely, at least initially, almost
exclusively on electronic communication (email and erooms).
t.p.~ .c.~+
22024693v1
Valued Aircraft Lessors,
Lenders and Trustees 2 September 14, 2005
We appreciate your cooperation as we face the enOmlOUS task of working with a
large number of our aircraft lessors, lenders and trustees in a timely manner. Wewill
do our best to provide as much infomlation as is available within your
timeframe, but please understand that it is early in the process and many details
are still being worked out. What I am able to tell you now is that some aircraft
leases will be rejected soon while others may be rejected later. Some transactionswill
be subject to Section 111 O(a) elections near the end of the sixty-day period.As
we have additional details and are able to share them with you, we will
communicate them to you. Throughout this process we will make every effort tobe
forthright, to be equitable and to be fair.
Delta is detennined to emerge from its reorganization process as a stronger, more
viable company. If you have additional questions about the reorganization
process, infonnation is available on our web site, www.Delta.com. If you would
like more infonnation about particular court filings, please visit
www.deltadocket.com, which will be updated as the cases progress.
Thank
you for your patience, ongoing support and cooperation.
22024693v1
Delta Restructuring Contacts
1. Questions Concerning the Process
Any questions concerning the restructuring of Delta and Comair should be
directed to the parties set forth below.
Babcock & Brown
Tom Tuggle or Bob Clinton
Phone: 212-935-7800Fax:
212-935-8949
Email: tom.tuggle@babcockbrown.com
Email: robert.clinton@babcockbrown.com
Debevoise & Plimpton LLP
Meredith Silver, Esq.
Phone: 212-909-6416Fax:
212-521-7216
Email: deltaproject@debevoise.com
2. ~ontact Infonnation
Please provide us with specific infomIation about the aircraft in which you hold
an interest, the nature of that interest and your contact infomIation. A fomI is
available for this purpose upon request or online at www.deltadocket.com. We
will rely, at least initially, almost exclusively on electronic communication (email
and websites).
We will not make this contact infomIation available to anyone other than our
employees and advisors who are assisting us in our financial restructuring effort.
Attention: Alexia Richmond
Email: deltaproject@debevoise.com
Fax: 212-521-8788
22024693v1
 

spinproof

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noneya
"Regrettably, we cannot afford to retain all the aircraft currently in the Delta and
Comair fleets at their current rates, nor will we require the use of all aircraft
currently in the fleets. "



"at their current rates" is the weasel phrase I was referring to! Which in my mind suggest restructuring payments. Your headline suggest something entirely different. There is no specifications listed in the above reference.

Thats not to say it won't eventually be so!
 
Last edited:

imacdog

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"To ensure that you have
sufficient time and information to evaluate and respond to these proposals, we
recommend that any party having an interest in a Delta or Comair aircraft
communicate with one of the contacts listed on the attachment, providing us with
specific infonnation about the aircraft in which you hold an interest, the nature of
that interest and your contact infomlation."
 

MedFlyer

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I think its almost a given that DL will cut the number of Comair CRJ's. I think the announcement of the cuts at CVG last week should have made that very clear. There's no way DL will reduce Comair flying by 5,000 hours and still keep the same number of planes.
 

RJ Bum

^ Not bumming it any more
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spinproof said:
"Regrettably, we cannot afford to retain all the aircraft currently in the Delta and
Comair fleets at their current rates, nor will we require the use of all aircraft
currently in the fleets. "



"at their current rates" is the weasel phrase I was referring to! Which in my mind suggest restructuring payments. Your headline suggest something entirely different. There is no specifications listed in the above reference.

Thats not to say it won't eventually be so!

I agree with you, that's why I put question marks at the end of the statement..
 

RJ Bum

^ Not bumming it any more
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MedFlyer said:
I think its almost a given that DL will cut the number of Comair CRJ's. I think the announcement of the cuts at CVG last week should have made that very clear. There's no way DL will reduce Comair flying by 5,000 hours and still keep the same number of planes.

I also agree, even though management told us they will keep them on property by reducing A/C usage a day. Riiiiiight. :rolleyes:
 

Ameriagle

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A recent article in AIN, written by Gregory Polek, on the aquisition of ASA by Skywest makes the statement that 40 CRJ's currently operated by ASA are on Comair's books and are actually leased by ASA! I am just wondering (if it is true) how this may in fact impact ASA/Skywest down the line once Comair starts unloading airframes? I'm assuming the notes on these aircraft would be transfered and may account for some of the reductions mentioned.
 

spinproof

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noneya
RJ Bum said:
I agree with you, that's why I put question marks at the end of the statement..

I stand corrected your punctuation does suggest a question as oppossed to a statement. :eek:
 

MELIT

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enough
spinproof said:
I stand corrected your punctuation does suggest a question as oppossed to a statement. :eek:

SkyWest Airlines is giving Comair back 6 CRJ's next month.
 

spitfire1500

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Enough
Ameriagle said:
A recent article in AIN, written by Gregory Polek, on the aquisition of ASA by Skywest makes the statement that 40 CRJ's currently operated by ASA are on Comair's books and are actually leased by ASA! I am just wondering (if it is true) how this may in fact impact ASA/Skywest down the line once Comair starts unloading airframes? I'm assuming the notes on these aircraft would be transfered and may account for some of the reductions mentioned.

If they are being leased to ASA I doubt those will be dropped since ASA/ skywest must be paying for them. The bottom line is the planes that will be dumped are the ones being operated at the highest CPSM.
 

generaltso

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I think the bottom line here is that delta needs to shed some 50 seaters.

Skywest/ASA has theres pretty much locked up, I doubt they will lose many.

There is no doubt that Comair will lose some

CHQ will probably lose some, but there will probably be some type of agreement where they will be replaced by 70 seaters.

I am not sure about Mesa. I don't know why DAL was so quick to add 30 more 50 seaters. My guess is because Mesa is dirt cheap and they can use that fact to get the other connection carriers to reduce costs (although that will be easy now with Chap 11 anyway. Reduce costs or your gone!)

DAL does not care about the pax... they brought Mesa in for god's sake. They care about the bottom line.

The next few months are going to see some changes in the Delta Connection family.
 

UM#1

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RJ Bum said:
I also agree, even though management told us they will keep them on property by reducing A/C usage a day.
Thats what what they told us at ATA about 2 months before I got my furlough letter and watched 737-8's leave for parking in the desert......
 

RJ Bum

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UM#1 said:
RJ Bum said:
I also agree, even though management told us they will keep them on property by reducing A/C usage a day.
Thats what what they told us at ATA about 2 months before I got my furlough letter and watched 737-8's leave for parking in the desert......

Well that's encouraging..... Good luck to everyone.
 

airlinepilot

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Delta to get 90 seaters

Had a Delta Capt in the jumpseat upfront.....make the statement that one of their MEC demands would be for the the 90 seaters to go their way to replace loss of other airframes......would Delta Management hang Comair out to dry???
 

jetflyer

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Somebody told me, Comair might be sold off plane by plane. They said with the high fuel costs the 50 seaters just weren't as profitable to fly as larger aircraft. Cross your fingers boys, these rumors are no good.

On a better note, I also heard though that Q-400 was a very likely new airframe for Comair and that it would be flown out of Denver for United. I've heard this from several people. I like that rumor better every day.

Sorry to spread rumors, but I can't help it.
 

Wacopilot

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every carrier that gives feed to Delta is suspect to aircraft loss.....Rember that EVERY contract is up for renegotiation once CH11 is filed.....labor, food service, lease agreements, and yes contract flying. If you had a 10 year deal to fly Delta feed guess what....it can be axed if Delta wants to. that means that they can park 50 seat rj's 50 seat erjs........noone is safe. And yes, that q400 thing is not a rumor......it will happen. I have my newly issued Q400 fcom on my desk.
Time to start studying

Waco
 
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