Comair's fate hinges on Delta

[Heavy Set]

Jarhead,

That's fine. But do you get my point? I think this point says a lot:

"Profits at those regionals and other wholly-owned subsidiaries are completely notional. Delta is free to arrange those contracts and books any way it wants, and can make them look as profitable or unprofitable as it likes."

It's conceivable that DAL management has manipulated its figures to apply pressure to the mainline pilot group... Right? Certainly helps at the bargaining table...

 

[jarhead]

Heavy.......

I agree. Delta has the capacity to make numbers in the particular report, reflect a bias one way or another to suit their own agenda. As stated early in the article, this is not an SEC filing, so I suspect there are a number of ways the data can be presented.

 

[Bako Cap]

Independent Skywest

I hope Skywest gets to leave their bonds at Delta. Sell them all these crappy RJs and start running an independent operation in SLC and the west coast. I'm not sure where Delta Connection would park in SLC though. I guess Skywest could sublease gates out of terminal E (owned by Skywest) for some of Delta's gates (they'll need the money in Ch.11) for Skywest 737s and 7E7's. Of course then United would have a problem with us running competition against them, but I'm really not sure they will be around much longer either.

Ahhhh, what a pipe dream. Then I could fly 737's at 50 seat rates. Or better yet Skywest could start up an alter-ego airline and my FO's can take E120 rates to get quick upgrades in the 737. NO PENSION Yeaahhhhh.....

Screw it, Maybe I should just get off my ass, pay $8000 for and interview and go to Southwest. Just wonderful... PFI (PAY FOR INTERVIEW)

So young, but yet so bitter..........................

 

[FDJ2]

Sunday, June 20, 2004

Comair's fate hinges on Delta

It pretty much always has.

 

[bvt1151]

That Enquirer article was horriblely innaccurate. In one paragraph they said Comair had the highest costs in the regional industry, then only a sentence later said they had one of the lowest costs per passenger mile. Which is it? I hope they understand the difference between total costs and unit costs.
If you buy that Skywest, CHQ, ACA, and Xjet are profitable, then you subscribe to the same definition of profitability that Comair uses. Comair and ASA are now paid fee for departure through Delta's accounting system, just like SKYW, CHQ, and ACA, and if you'll search through my previous posts you'll find where I explain just how accurate the DOT data is, and why it is so accurate. The DOT data not only says Comair is profitable with what skeptics like to call "questionable reveues," but that the also have some of the lowest CASM's in the regional industry. The only control Delta has over Comair's costs is to make them higher. Aside from the advertising Comair does not need, Comair pays everything to Delta including station handling and reservations fees. Of course CHQ, Skywest and ACA don't pay for advertising either.
But then again I think we've already proven that not even facts can persuade the bull-headed.

 

[lowecur]

If that were to take place, which pay scale would the previously separate contracts for pilots, F/A's and MX would be operating under in this newly 'merged' entity?

Everything is negotiable between DL and those groups. I don't really know a lot about how 11 works, but I believe negotiations are the first step toward new contracts, and then possible binding arbitration or a determination by the bankruptcy judge.

Fred Reid and his over zealousness about the use of the RJ has put DL in quite a bind. These things need to be addressed, and unfortunately bankruptcy may be the only solution. DL has so many anchors weighting it down ie: pilot's contract, long term debt, pensions, and myriad of regional problems, that it seems to me to be too overwhelming to achieve viability without 11.

 

[AFELLOWAVIATOR]

Everything is negotiable between DL and those groups. I don't really know a lot about how 11 works, but I believe negotiations are the first step toward new contracts, and then possible binding arbitration or a determination by the bankruptcy judge.

Fred Reid and his over zealousness about the use of the RJ has put DL in quite a bind. These things need to be addressed, and unfortunately bankruptcy may be the only solution. DL has so many anchors weighting it down ie: pilot's contract, long term debt, pensions, and myriad of regional problems, that it seems to me to be too overwhelming to achieve viability without 11.

Myriad of regional problems? The RJ has put them in a bind? Hu. O K.........Actually really not worth a response.

 

[lowecur]

Myriad of regional problems? The RJ has put them in a bind? Hu. O K.........Actually really not worth a response.

Let me clarify. Because of Comair's contracts, DL has outsourced a lot of RJ flying to try and gain some leverage for possible renegotiations. They have basically co-signed on all the Skywest CL's, plus they have a large number of options for CRJ's that are still outstanding. Solution.....Chapt 11 to bring everything under one umbrella regional.

 

[surplus1]

Comair's "fake" profitability is such a drain on Delta that Comair pilots should propose changes in their contract that will help to restore Delta's bottom line. It is only fair for us to help the Company and the Delta pilots, since they have "given" us everything we have. It is time to thank them for their past generosity and pay back what is really theirs.

Here are some ideas.

1. We should offer that all the 70 seaters be crewed by furloughed Delta pilots. That way CMR pilots can move back to the 50 seaters, where they belong. That's only for starters though -- see #9.

2. We should alter our pay scales for the 70-seater and agree to fly them for $2/hr less than the U pilots fly the EMB-170 @ MAA. That would make the top pay $56/hr, which would make us "competitive". It won't matter since the planes will be flown by DL pilots anyway and they need job security more than we do.

3. We should lower the 50-seat rates accordingly, including no credit for longevity. There is no reason the Company should pay us more than Mesa to fly these planes. Think of the "growth" that might come if we can undercut Mesa. That would get all the furloughees back in a heartbeat.

4. We should remove all the stupid "work rules" and agree to fly to FAR's. That will improve productivity and help the Company. Since most CMR pilots will be replaced by furloughed DL pilots it won't affect us much and the DL pilots will be so happy to get back to work that they won't care either. This would really help the Company.

5. We should give up those DC pension benefits. Since all of us want to fly for a "major" some day, we don't need any "retirement" from a place where we aren't going to retire. That includes the Company's 401K match as well. When we do get to be real airline pilots at a major we will be able to recover all and more by participating in their superior DB retirement plans.

6. Things like "premium pay", duty rigs, trip rigs and minimun day are unnecessary at a regional airline. The CFI's that now fly our airplanes aren't accustomed to that and won't care. Besides, they are all going to flow-through/migrate to DL at some point anyway. While we're at it, we should also do away with cancellation pay. That "risk" should be absorbed by the pilots, not the company.

7. We should encourage the re-establishment of PFT, with an exemption for the DL pilots that move over. The rest of us need to pay for the jobs we have, given our lack of experience.

8. We should indicate our willingness to accept a "pure staple" with DL mainline and beg the DL pilots to consider it (the company might agree if we do all those other things above first). That way a 3-yr DL furloughee can be senior to a 25 yr CMR captain. That is their rightful place anyway, so why not give back to them what they have given to us? We won't lose more than 1000 jobs, so most of the "lifers" that we have will still keep their employment. Some might have to downgrade, but so what. The increase in the quality that the company will get from the "experience" of the DL pilots is well worth it. This is a little risky because the DL pilots might give concessions in work rules too and that might furlough a whole lot more. Still, the beneift of a staple outweighs the risk. Everything will be back to "normal" in 10 years anyway. Not to worry.

9. In the interest of unity with the DL pilots and to gain the blessing of ALPA, we should agree that the DMEC scope clause should be lowered so that DL pilots fly everything over 40 seats in a couple of years, and later on all jets. That should finally put a stop to all these useless RJs that Delta has chosen to operate (once these airiplanes are flown by "the mainline" they won't be RJ's anymore. We'll just call them "small jets"). The flying belongs to DL pilots anyway and we have been "stealing" it for too long. Let's be honest and give it back. As a side effect, it will also improve the credibility of the Boyd group and people may even start to believe DW as well.

10. These things will allow us to "share the pain" of the DL pilots, which is what they want, and we all know deep down that what they want is just and it is what they should have. These things will help return the "mainline" to profitability and reduce the loss that they suffer from subsidizing Comair. One day the DL pilots will "forgive" us for all the bad things we have done to them. That way when the mainline grows we can all aspire to the "preferential hiring" that they will surely force their company to give us in return. We must learn to trust the DL pilots who really have our best interests at heart. After all they did pay the assessment and they gave us money during the strike. We "owe" them.

11. Finally, if we do this, the DL pilots will help us to get a Scope Clause like theirs and we can eliminate SkyWest, Chatauqua and any other outfit that wants to subcontract with Delta. That will return all the "growth", we will get new airplanes, and every one will be recalled in a short time. When its all settled you will be able to call yourself a "mainline pilot", even a Delta pilot, which is the greatest benefit of all.

I'm sure that mangement will accept these ideas and have little doubt that we will gain the full support and love of ALPA, the DMEC and the DL pilot group. It will also help the Company to pay for all those "hidden costs" that Delta mainline is now paying for us on the backs of the impoverished DL pilots.

PS. Don't worry about ASA, if we do this right we can get some of their flying back for the DL pilots too.

 

[RichO]

Surplus, your kidding right????