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From Aviation Week & ST
I think Comair is well positioned once DAL exits bankruptcy.
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Comair has asked the bankruptcy court to allow the airline to impose contract concessions on its pilots to avoid an $8 million spike in pilot labor costs, starting in January 2007.
The carrier's management and pilots, represented by the Air Line Pilots Association, reached a concessionary deal last January that was contingent on Comair's obtaining certain costs savings from flight attendants. Since those targets weren't reached, ALPA opted to act on that contingency clause.
Comair told the court that ALPA rejected its subsequent offers, which the airline claims contain pay rates higher than pilots agreed to in January. "Time is running out for the pilots, whom ALPA represents, whose jobs are secure only if Comair becomes competitive and able to retain and grow its business."
If Comair management and ALPA fail to reach a deal before January, pre-bankruptcy concessions agreed to by pilots expire Dec. 31 as a result of Comair's failure to meet growth commitments that were key to those concessions. Comair has attached an $8 million price tag to the snapbacks.
Comair told the court it believed the latest proposal management delivered to pilots would make the carrier competitive for 70-seat and 76-seat flying for Delta that regional airlines are jockeying to win. Comair offered ALPA limited guarantees that if the two sides could reach a deal before the planes are awarded, Comair could keep no fewer than 22 70-seat planes and obtain a pledge from Delta for 40% of all unawarded regional jet flying in a 69- to 80-seat range that should be designated to a carrier before Dec. 31, 2007. Those pledges are subject to financing and creditor discussions.
In its argument to the court, Comair highlighted cost gaps between its pilots and those at other regional airlines. The airline pointed out that based on current pay rates, Comair is at a $13.5 million cost disadvantage per year to Mesa airlines, $8.3 million to Pinnacle and $7.6 million to former Delta subsidiary Atlantic Southeast Airlines. "These pay differentials are not simply illustrative market data points," Comair said. "These carriers are Comair's direct competitors, who have -- and will continue to -- bid against Comair for flying opportunities."
Comair pilot union leaders recently told members that its desire to reach a fair and equitable consensual deal remains strong. They pointed to their prior stance that pilots look forward to "real bargaining, not posturing." Discussions are tentatively scheduled between the two parties in the next two weeks.
I think Comair is well positioned once DAL exits bankruptcy.
------
Comair has asked the bankruptcy court to allow the airline to impose contract concessions on its pilots to avoid an $8 million spike in pilot labor costs, starting in January 2007.
The carrier's management and pilots, represented by the Air Line Pilots Association, reached a concessionary deal last January that was contingent on Comair's obtaining certain costs savings from flight attendants. Since those targets weren't reached, ALPA opted to act on that contingency clause.
Comair told the court that ALPA rejected its subsequent offers, which the airline claims contain pay rates higher than pilots agreed to in January. "Time is running out for the pilots, whom ALPA represents, whose jobs are secure only if Comair becomes competitive and able to retain and grow its business."
If Comair management and ALPA fail to reach a deal before January, pre-bankruptcy concessions agreed to by pilots expire Dec. 31 as a result of Comair's failure to meet growth commitments that were key to those concessions. Comair has attached an $8 million price tag to the snapbacks.
Comair told the court it believed the latest proposal management delivered to pilots would make the carrier competitive for 70-seat and 76-seat flying for Delta that regional airlines are jockeying to win. Comair offered ALPA limited guarantees that if the two sides could reach a deal before the planes are awarded, Comair could keep no fewer than 22 70-seat planes and obtain a pledge from Delta for 40% of all unawarded regional jet flying in a 69- to 80-seat range that should be designated to a carrier before Dec. 31, 2007. Those pledges are subject to financing and creditor discussions.
In its argument to the court, Comair highlighted cost gaps between its pilots and those at other regional airlines. The airline pointed out that based on current pay rates, Comair is at a $13.5 million cost disadvantage per year to Mesa airlines, $8.3 million to Pinnacle and $7.6 million to former Delta subsidiary Atlantic Southeast Airlines. "These pay differentials are not simply illustrative market data points," Comair said. "These carriers are Comair's direct competitors, who have -- and will continue to -- bid against Comair for flying opportunities."
Comair pilot union leaders recently told members that its desire to reach a fair and equitable consensual deal remains strong. They pointed to their prior stance that pilots look forward to "real bargaining, not posturing." Discussions are tentatively scheduled between the two parties in the next two weeks.
