Comair to lose Aircraft in Chap 11??

[amcnd]

I think you are worng. I think SkyWest knew that Delta was going CH11 and, firmed up a good 15 year contract that will be stick in CH 11 (just like SkyWest United was.) SkyWest has all the cards...1. all the gates in ATL. 2. 125 mill in cash of Delta's. 3. 15 year contract. What does Comair have? Nothing Delta cant trash, now that Comair is also in CH11!!!

 

[jetflyer]

What does Comair have? Nothing Delta cant trash, now that Comair is also in CH11!!!

hahahahaha, rub it in why don't ya. Ya schmuck

Jet

 

[amcnd]

All im saying i that Im bet SkyWest and Delta made this ASA purchase knowing that CH11 was only 2 weeks away. And Im sure that SkyWest got a pretty good deal. What we should worry about is the MESA "pay to play with delta" flying that they are going to start for Delta soon!! I heard they undercut the flying by allot so they could keep there US air planes flying.

 

[jetflyer]

I heard Friday there will be a BIG ANNOUNCEMENT about the future of Comair and that it's not going to be pretty.

GREAT!!

Jet

 

[General Lee]

I heard Friday there will be a BIG ANNOUNCEMENT about the future of Comair and that it's not going to be pretty.

GREAT!!

Jet

Jet,


If it was anything like our company opener today, you are right! Ouch.


Bye Bye--General Lee

 

[rtmcfi]

Best of luck to you all.......

 

[fugghedabowdit]

Jet,

Any particulars?

 

[PalmettoPilot]

Didn't Mesa buy the old DO-Jets that DAL was stuck with from ACA? A deal made in exchange for some of the Connection flying that Mesa is supposed to get?

 

[RJ Bum]

Delta Air Lines Steps Up Transformation Plan to Accelerate Path to Profitability​

​

New initiatives add $3 billion in financial benefits to previously announced $5 billion target;​

Stakeholders will share in sacrifice as company restructures


​

ATLANTA, Sept. 22, 2005 – Delta Air Lines (NYSE: DAL) CEO Gerald Grinstein today



outlined an expanded and stepped up transformation plan designed to “save Delta in the near

term, so that it can compete and win in the long term.” The plan targets an additional $3 billion

in annual financial benefits by the end of 2007, on top of the $5 billion in annual benefits the

company is on track to deliver by 2006, as compared to 2002.

Delta will combine savings achieved through the Chapter 11 restructuring process with planned

revenue and network productivity improvements and more competitive employment costs to

achieve the $3 billion target, with each of the three areas accounting for roughly $1 billion in

revenue and savings benefits.

In a memo to Delta’s 52,000 employees, Grinstein said that the “transformation plan’s business

model has been designed to fortify Delta against the clear and present threats from our

competitors” and that Delta “intends to move from being an unprofitable airline today to a

profitable airline in just over two years.”


​

In-court restructuring​

​

Utilizing the benefits of the in-court restructuring process, Delta intends to realize $970 million



in annual financial benefits through savings such as debt relief, lease and facility savings and

fleet modifications. The company has already rejected leases on 40 mainline aircraft, which it

was not operating at the time of Delta’s Chapter 11 filing, and plans to reduce the size of its

mainline operating fleet by an additional 80-plus aircraft by the end of 2006. These actions

accelerate by two years Delta’s plans to simplify the fleet by four aircraft types. With these

changes, Delta plans to operate seven mainline aircraft types by the end of 2006 – down from 11

today and 14 as recently as 2001. Reductions to the regional jet fleet at Delta Connection carrier

Comair are under evaluation and are expected to be determined soon.


​

Revenue and network productivity improvements​

​

Ongoing improvements to Delta’s route network and revenue stream are intended to provide $1.1



billion in annual benefits. Key initiatives include:


​

•​

Increasing point-to-point flying and right-sizing domestic hubs to achieve a greater local



traffic mix;


​

•​

Reducing domestic mainline capacity by 15-20 percent to address over capacity in the



U.S. market; and


​

•​

Growing international capacity by 25 percent in 2006 to pursue routes with greater profit



potential

Recently announced plans to strengthen Delta’s domestic hubs and grow international schedules

this winter, including the right sizing of capacity at Cincinnati and the addition of new or

expanded service to 41 international destinations, are examples of these strategies.


​

Competitive employment costs​

​

Delta’s expanded plan also includes pay cuts and job reductions for employees throughout the



company, which Grinstein said “will be shared by all Delta people equitably and within the

context of comprehensive business plan,” including an opportunity for employees to share in

future success through enhanced profit-sharing.

Approximately $930 million in annual financial benefits are intended to be realized through

reduced employment costs, employee productivity improvements and overhead reductions. This

total represents annual savings of $325 million from Delta pilots and $605 million from the nonpilot

work force, including management.

Other components of employment changes include:


​

•​

Eliminating 7,000-9,000 jobs systemwide by the end of 2007;




​

•​

Reducing pay at all levels of management, including a 25 percent pay reduction for



Grinstein; a 15 percent reduction for officers; and a 9 percent reduction for supervisory

and other administrative personnel;


​

•​

Reducing pay scales by 7-10 percent for most front-line employees, excluding those



earning less than $25,000 annually; and


​

•​

Enhancing profit sharing to allow all Delta employees to share in future success from the



first dollar of profitability.

Grinstein said that as Delta moves forward, the stepped-up transformation plan will make the

company smaller and more cost efficient, while preserving its customer-focused heritage.

“Delta will move quickly and decisively to do what is necessary to beat our competitors and

meet our financial commitments, and this means we will become a smaller, more cost-efficient

airline, with a strengthened network and a stronger balance sheet,” Grinstein said. “Our

transformation will be sweeping and fast-paced; it must be if we are to survive and thrive as a

stand-alone company in control of our own destiny.”

Delta Air Lines is the world’s second-largest airline in terms of passengers carried and the

leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries

on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's

marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000

flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a

global airline alliance that provides customers with extensive worldwide destinations, flights and

services. Customers can check in for flights, print boarding passes and check flight status at


​

delta.com​

​

.




​

​

​

 

[brvopilot]

let's highlight this:

Reductions to the regional jet fleet at Delta Connection carrier Comair are under evaluation and are expected to be determined soon.

oh boy, this ain't going to be pretty....