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Delta is going to sell Comair, yeah right!!!!!

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General Lee said:
Reamy,


You guys are in the next negotiations, not us. We avoided Chap 11 and have contributed greatly, and our next one is due in 5 years. If you know otherwise, then you might also know the lottery numbers for the Lotto. Sarge, it looks like your pay will decline next, and that isn't our fault or Dalpa's fault, but "competition." You will eventually have to justify those wages to Randy, and he will blame it on your friends at Mesa. That is the way it is. And, I am fine with our new pay scales. Most of the really senior FOs will now go to Captain to make up that pay difference. Looks like I may have a 777 FO slot in the near future. I can deal with Paris. Enjoy Sarge.


Bye Bye--General Lee
That's right we are and you had better hope that we don't get the chance to walk and give Greenjeans a reason to come back to you guys with his hand out to keep up with YOUR "competition."
 
Reamy,


Ok............................We are level with our competition now. Our competition would be defined as a "Lagacy Carrier not in Bankruptcy." NW, CO, AA would be included. Our rates are fairly close to all of those now. That is our competition. What about your competition? How are your rates compared to a wholy owned by a Legacy not in Bankruptcy? That would be Eagle and Pinnacle or Mesaba. Coex isn't owned fully by Continental anymore. So, let's look at the rates. Randy will. I hope you guys stay high, because that will tell management that there isn't much of a pay difference between a 70 seater at Comair and a 737 type aircraft here, and maybe we will expand more. There isn't much we can do about our current rates, but management would probably like to change yours, and that isn't my fault.



Bye Bye--General Lee
 
We can speculate as to why, but for whatever reason DAL management has kept ASA and Comair along with their infrastructures separate. Despite losing many billions of dollars in three years, they would rather keep redundant operations staffs in place than combine the two and realize the economics of scale that would result. The whipsaw is alive, but so is the ease with which they can spin us off.

But here comes the fun part, what would happen next?

IMHO, ASA and Comair will at some point in the future be spun off like XJet was. Portions of the stock retained by the company in part will be issued (like Mesaba was at Northwest) to the good pilots of Delta as part of their underfunded pension plan. Now if they still want to hammer the former subs, they will be killing part of their own retirement! Tee hee.

And by the way, UAL plans to issue stock as part of its exit strategy with the sole purpose of giving it to their employee pension plan, whatever form it might be in then.
 
General Lee said:
Reamy,


Ok............................We are level with our competition now. Our competition would be defined as a "Lagacy Carrier not in Bankruptcy." NW, CO, AA would be included. Our rates are fairly close to all of those now. That is our competition. What about your competition? How are your rates compared to a wholy owned by a Legacy not in Bankruptcy? That would be Eagle and Pinnacle or Mesaba. Coex isn't owned fully by Continental anymore. So, let's look at the rates. Randy will. I hope you guys stay high, because that will tell management that there isn't much of a pay difference between a 70 seater at Comair and a 737 type aircraft here, and maybe we will expand more. There isn't much we can do about our current rates, but management would probably like to change yours, and that isn't my fault.



Bye Bye--General Lee
ok.....................that's a pretty convenient and narrow definition of who your competition is, but heh I'm sure in your little world there is an element of truth there.

At any rate you should do a little research before you start running your suck hole, but that would be out of character for you.

Your rates are not "fairly close" to AA with a 7th year 75 FO there making 101 versus the DAL rate of 115. And as for our rates that you mention by way of comparison:

5th year 50 seat jet Captain:

ASA - 62
Pinnacle - 62
Mesaba - no 50 seater, but the AVRO is 66
AE - 64

So how is it again that we are not competitive?

BTW. Get over your juvenile obsession with what's "fair" and "who's fault" it is. It's embarassing.
 
FlyComAirJets said:
We can speculate as to why, but for whatever reason DAL management has kept ASA and Comair along with their infrastructures separate. Despite losing many billions of dollars in three years, they would rather keep redundant operations staffs in place than combine the two and realize the economics of scale that would result. The whipsaw is alive, but so is the ease with which they can spin us off.

But here comes the fun part, what would happen next?

IMHO, ASA and Comair will at some point in the future be spun off like XJet was. Portions of the stock retained by the company in part will be issued (like Mesaba was at Northwest) to the good pilots of Delta as part of their underfunded pension plan. Now if they still want to hammer the former subs, they will be killing part of their own retirement! Tee hee.

And by the way, UAL plans to issue stock as part of its exit strategy with the sole purpose of giving it to their employee pension plan, whatever form it might be in then.
I just hope they don't spin off us (ASA) off before we strike in `05. We need all the leverage we can get in these negotations! Hopefully our picketing last week got some attention of the management at DAL and ASA, but I won't hold my breath. I think it will take a strike vote and a timeline to get things moving!
 
601Pilot said:
I just hope they don't spin off us (ASA) off before we strike in `05. We need all the leverage we can get in these negotations! Hopefully our picketing last week got some attention of the management at DAL and ASA, but I won't hold my breath. I think it will take a strike vote and a timeline to get things moving!
How do you figure you have more leverage as a wholly owned vs. independent? I hope you aren't using the CMR strike as your model. CMR pilots successfully shut down 5% of DAL revenue for 89 days before the CMR pilots threw in the towel.
 
Actually, the percentage was higher than that and resulted in a DAL quarterly reported loss of $670 million. ASA has significant presence in SLC and CVG and, of course, ATL and that would ensure that any work stoppage would hurl DAL into Chapter 11.

Welcome to the era of Mutually Assured Destruction.
 
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FDJ2 said:
How do you figure you have more leverage as a wholly owned vs. independent? I hope you aren't using the CMR strike as your model. CMR pilots successfully shut down 5% of DAL revenue for 89 days before the CMR pilots threw in the towel.
For once we agree! Either way ASA is in a position to take Delta out. Lets hope it doesn't get that far.

Management could have worked a contract by coming to the table with good faith offers to improve the quality of life at ASA, without costing the company a dime. For example, why is a seniority based reserve system and allowing pilots more flexibility with open time such a problem to implement. These are win / win solutions that the Comapny should have implemented just to improve morale.

I remember when our former VP of Flight Ops was shocked to learn that we did not have a seniority based reserve system and preferential bidding. He said he had never heard of an airline that did not have seniority based reserve and that he would fix it, we had his word on it. Well..... we are still waiting....

Just like FLICA. It solves the Company's problem and allows them to schedule pilots with less staffing - but pilots get to pay the bills for the Company's overhead.

The fact that management has used win / win solutions as bargaining chips frustrates so many line pilots who would otherwise be ambivalent about the contract negotiations. Frustrate us enough and we get to where we just do not care about shutting this place down.
 
TO: The General, FDJ2, and their friends

I just love being entertained by the efforts of the General, FDJ2, and their associates to convince Comair pilots and others that they must take concessions to "remain competitive".

They appear to harbor a deep resentment towards the Comair group, which they try to justify with their "you didn't fall on your sword to hire our furloughees" (while the only thing they did for their furloughees was pay their Cobra - while taking assorted positions that delayed their return, etc), and would like Comair pilots to be "punished" with concessions so that we can "share the pain" of a group of people that have been working to achieve the demise of Comair for more than ten years.

Be that as it may, the following is a post by someone else (I didnt write it) that I copied from another forum. I'm pasting it here because I think it puts a good perspective on just what concessions by Comair might be worth to the bottom line of Delta Air Lines. Maybe it will give Comiar pilots (who have not seen it before) and the rest of you a more practical perspective of the realistic value. (Both messages were written by Comair pilots).

There are really two posts; the second is a reply to the first. I have edited them to protect the identities of the writers and to remove the irrelevant parts. Here are the posts I copied, enjoy:


Date: Saturday, December 18, 2004 --

[The first post ---]
Why is there still talk of concessions? I still see no need no matter what the outcome. When I look at the contracts of similar air carriers, ours is not that much more expensive. Would our concessions really spur growth. How many aircraft would it really buy?
A Spinoff with restrictions tells me they still need us. So what's my incentive to cough up?

This whole thing stinks. It looks to me as nothing more than a attempt to beat up labor and reset to a MUCH MUCH lower standard for us all. Money has very little to do with it.

I would rather dig in, fight the good fight and go out with my head held high than whipped with my tail tucked and unable to look my fellow pilots in the eye. Bare teeth and stand your ground or roll over and expose your belly.

[The reply ---]

Date: Saturday, December 18, 2004

You're looking at it all wrong; show some heart. Tell ya what, XXXX - try to look at it like this:

If 1,800 Comair pilots each accept an annual concession worth $20,000.00, it will save Delta Inc $36 millions a year. How much is that, you ask? It's enough cash to enable Delta to provide lump-sums for 24 Mainline Delta Captains (assuming an average lump sum of $1.5 million). That's right, if all 1,800 of us pitch in, we can fund the retirements of 24 mainline pilots.

One possible problem. Over 200 mainline pilots took their lump's last month and I'm not certain each of us has the ability to come up with (approx) $180,000.00 (each) to help finance December's early retirements).

But just remember, it's the giving season and it's the thought that counts.
I guess the value of concessions by Comair pilots and their impact on Delta's bottom line is a matter of perspective. Obviously, the General, FDJ2 and I don't have the same perspective.
 
FDJ2 said:
How do you figure you have more leverage as a wholly owned vs. independent? I hope you aren't using the CMR strike as your model. CMR pilots successfully shut down 5% of DAL revenue for 89 days before the CMR pilots threw in the towel.
Because the IPO of a company in labor turmoil is not worth much to DAL. That's the leverage of which I speak. It's not rocket science, people!
 
Surplus1,


I am not trying to convince you or any Coamir pilot that you need to make huge concessions. I am just giving my opinion on what will PROBABLY happen. To say that your management won't ask you, the highest paid regional operators, for pay cuts in return for some sort of growth is naive. Of course they will! And, that isn't me pulling the strings, it is just obvious. I hope you guys get a huge raise and become so expensive that Delta finally says---"Hey, instead of buying more CR7s, let's just get some 737-700s and put those furloughed guys back in the air." Have a great one!


Bye Bye--General Lee
 
To say that your management won't ask you, the highest paid regional operators, for pay cuts in return for some sort of growth is naive

I thought this was already covered.. Randy did come to us and ask for pay cuts in return for growth.. He was told to pound sand.
 
General Lee said:
Surplus1,

I am not trying to convince you or any Coamir pilot that you need to make huge concessions.
From what you write it's pretty hard to tell that. In fact you sound like concessions at Comair are what you would most like to find under your Christmas tree.

I am just giving my opinion on what will PROBABLY happen. To say that your management won't ask you, the highest paid regional operators, for pay cuts in return for some sort of growth is naive. Of course they will! And, that isn't me pulling the strings, it is just obvious.
Sure they will ask and we can all figure that out without your assistance. They asked before and they will ask again. The answer we give will depend on the best interests of Comair pilots, regardless of what Delta pilots think. In other words, we will do what we think is best for us without regard to what you think about it. That is exactly what you did and, sorry to say, we really aren't that different.

Did you give a billion dollars for growth? I don't think so. You gave because it was necessary for your survival. IF it becomes necessary for our survival, and we're a long way from that at present, then perhaps we will give too. Growth and survival are not the same thing. We may be naive in your eyes, but we are not so naive that we don't know that there is absolutely no way that we can buy growth with contract concessions. If all of us worked for nothing it couldn't "buy" more than 5 or 6 new RJs. We don't have enough money to "buy growth" for Comair, just like you don't have enough money to buy growth for Delta.

When the company thinks it is wise to grow the airline they will do so. If they think it is unwise then they will not. It's really that simple. Growth doesn't come from pilot compensation, it comes from revenue generated by customers filling seats at a better than break-even price.

Unlike many other airlines, it has been our policy for many years, that we do not negotiate pay rates for aircraft that we do not already have on the property unless the company can produce "firm orders" in writing, for those aircraft. If and when management can show us the contract for "growth" airframes, then we can talk about it.

Nothing that we do or don't do can make the company's business decisions. That's a management function. Management is free to "bid" whatever it wants for whatever it wants, without us. After the "bid" is awarded, then they can show us the hard numbers in black and white and then we'll decide what if anything we would like to do about it, not before. Maybe you think we just "fell off the turnip truck". If you do, you're wrong.

The decision to grow or not grow the business is not dependent on our pay package being negotiated before the fact. That's a suckers game and one that, so far, we have not been willing to play. I can only hope that our MEC will continue to keep it that way.

I hope you guys get a huge raise and become so expensive that Delta finally says---"Hey, instead of buying more CR7s, let's just get some 737-700s and put those furloughed guys back in the air." Have a great one!
I sincerely hope that you base your "wishes" on something more concrete than that. I advise you not to count on it. As far as I know, we have no plans to follow in your footsteps and price ourselves out of the market. Up to now we haven't done that. I don't think we're planning on a "huge raise" or anything like it, so you'd better go to plan B if you want those 737-700s; and keep on hoping that we don't wind up with the big EMB's.

And by the way, don't dazzle me with your scope clause. It's been changed before and when the Company decides to change it again, they will. All you need to do is understand that YOU are not calling the shots on that any more, Delta management IS. Right now, your "leverage" is not a bit better than ours. In fact it may not be as good.
 
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RIM JOB FLYER said:
That's right we are and you had better hope that we don't get the chance to walk and give Greenjeans a reason to come back to you guys with his hand out to keep up with YOUR "competition."
You crack me up with these mis informed statements. DAL's costs ARE in line with their competition,
DAL yr 12 cpt=$156/hr
SWA yr 12 cpt=$182/hr
CAL yr 12 cpt=$158/hr
AMR yr 12 cpt=$156/hr

Get ready rim job, your pay cut is next!
737
 
737 Pylt said:
You crack me up with these mis informed statements. DAL's costs ARE in line with their competition,
DAL yr 12 cpt=$156/hr
SWA yr 12 cpt=$182/hr
CAL yr 12 cpt=$158/hr
AMR yr 12 cpt=$156/hr

Get ready rim job, your pay cut is next!
737
Nice try sh!tbird, yes the 737 capt rates you mention are the same, but DALs rates are still 10-15% higher on some of the other equipment and seats.(DAL vs. AMR) Furthermore how do your rates compare to your buds at UAL needledik?

As for what is next for us, don't bet on us bending over like you girls did anytime soon.

AMF
 
Rim ME said:
Nice try sh!tbird, yes the 737 capt rates you mention are the same, but DALs rates are still 10-15% higher on some of the other equipment and seats.(DAL vs. AMR) Furthermore how do your rates compare to your buds at UAL needledik?
Aah, the mindless insults from a wanna be pilot playing with his joystick. UAL took it in the pooper, much like you do every night! I fear they aren't long for this world, much like you.

As for what is next for us, don't bet on us bending over like you girls did anytime soon.

AMF
The only bending over done is your sister for the pro football team!
I look forward to the day I laugh in your pathetic face at all the BS you spew from your nut drainer.
Back at ya AH!
737
 
Ream-boat,


What are the Southwest 777 rates? Did you know that some airlines, mainly LCCs, have primarily one or two plane types? Delta and the other legacy carriers have more than a couple. Some of our rates are higher, but those planes are bigger and carry more passnegers, hence more revenue for the company.

And, you want us to compare our rates to United, a carrier that has been in Chap 11 for a few years now? How are your rates compared to Mesa? I'm waiting.

Also, I have noticed that you use the word "dik" a lot---and being in the Military I think you should abstain, since the "Don't ask, Don't tell" policy is still in affect---and you are telling the world a lot. You are always talking about your "privates" and then this. Sheesh---keep it in the barracks please....


Bye Bye--General Lee
 
General Lee said:
Ream-boat,


What are the Southwest 777 rates? Did you know that some airlines, mainly LCCs, have primarily one or two plane types? Delta and the other legacy carriers have more than a couple. Some of our rates are higher, but those planes are bigger and carry more passnegers, hence more revenue for the company.

And, you want us to compare our rates to United, a carrier that has been in Chap 11 for a few years now? How are your rates compared to Mesa? I'm waiting.

Also, I have noticed that you use the word "dik" a lot---and being in the Military I think you should abstain, since the "Don't ask, Don't tell" policy is still in affect---and you are telling the world a lot. You are always talking about your "privates" and then this. Sheesh---keep it in the barracks please....


Bye Bye--General Lee
Private,

The comparison was drawn between you and AMR not the LCCs smart guy. You would have caught that if you weren't so busy blowing your buddy 737 peealot.

To answer your question though:
5th yr 50 seat jet captain
ASA - 62
Mesa - 59

How is it again that UAL is not your competiton in terms of pay rates?
 
Reambo,


You are getting desperate. United is in Chap 11 protection and a judge is making the decisions. Delta almost got there supposedly, but now has enough cash from us to thrive probably. We will never know because you and I never saw the books.

AMR does pay a little lower, but NW and CO pay about the same. They are our code share partners you know! How does ASA compare to Eagle (owned by AMR) or Mesaba or Pinnacle? It is all moot anyway. I don't know where you are going with this again, but you sound desperate. And, you continue to add gay remarks, like you enjoy that stuff. You really need to keep your "private" business to yourself and your bunk mate. (top or bottom you always ask? --remember, don't ask, don't tell)


Bye Bye--General Lee
 
General Lee said:
Reambo,


You are getting desperate. United is in Chap 11 protection and a judge is making the decisions. Delta almost got there supposedly, but now has enough cash from us to thrive probably. We will never know because you and I never saw the books.
General:
You can't reason with ladies like Rim job! He's busy dreaming of a "BOY Christmas."
He knows it all, just ask him!
737
 
Could we bring a little civillity back to this. I'm having a hard time following the discussion amidst the insults!:confused:
 
I dont' know who xrmeflyer is, but I sure hope he does not fly for ASA. I would not want to call myself a 'brother' pilot to such a person. Almost everyone of your post's have nothing but vile bitternes and insults in them. I hope you are proud of yourself. You act just like a two year old. Everyone on these boards has the right to post thoughts, opinions and suggestions. You seem to revel in the insults. We can agree or disagree on things said here, but you take it to a new low.
 
General Lee said:
Reambo,


You are getting desperate. United is in Chap 11 protection and a judge is making the decisions. Delta almost got there supposedly, but now has enough cash from us to thrive probably. We will never know because you and I never saw the books.

AMR does pay a little lower, but NW and CO pay about the same. They are our code share partners you know! How does ASA compare to Eagle (owned by AMR) or Mesaba or Pinnacle? It is all moot anyway. I don't know where you are going with this again, but you sound desperate. And, you continue to add gay remarks, like you enjoy that stuff. You really need to keep your "private" business to yourself and your bunk mate. (top or bottom you always ask? --remember, don't ask, don't tell)


Bye Bye--General Lee
It's a little early to be making Prognostications about whether or not you will ever know if your great sacrifice was enough.

How does who you code share with have anything to do with who your peers are in terms of wages?

The question of where ASA's rates are compared to the others:
ASA-62 AE-64 Pinnacle-62

You sure are defensive about your "alternative lifestyle."
 
Gawd, I love 'experts'

Sorry to interrupt the love fest here, but this article was in the local fish wrap a few days ago. Excuse me if it has been posted already. Notice how analysts manage to straddle both sides of the fence.

Saturday, December 18, 2004

Analyst views sale of Comair negatively
Its many woes would pull market value down

By James Pilcher
Enquirer staff writer


Just what is Comair worth, anyway?

Would it be enough for Delta Air Lines to pull a trigger on a deal or public offering spinoff that would turn its Erlanger-based subsidiary back into an independently-owned company?

Industry analysts say it's difficult to put a precise figure on Comair's worth.

But they say that on the open market, it would be much less than the $2.3 billion Delta spent for the airline in early 2000.

"They are not very attractive right now, and given the climate surrounding airlines in general and the regional industry, they'd be giving away the product," said Ray Neidl, airline analyst with Calyon Securities.

Earlier this week, Delta executives openly said that the airline did not have to own Comair to get the benefits of a regional carrier, and that they were continually weighing those benefits against Comair's value as an asset.

Analysts have been speculating for several years about the possibility of Delta spinning off Comair to raise cash.

That speculation that came to a crescendo earlier this fall as cash-starved Delta teetered on the verge of bankruptcy.

On Friday, Delta officials declined comment and would not speculate on any potential deals or spinoffs involving any of its subsidiaries, which also include Atlanta-based regional Atlantic Southeast Airlines.

"Delta Connection is a key part of our network and business strategy," Delta spokesman John Kennedy said Friday. "But it's prudent that we continually evaluate how Delta Connection and other subsidiaries fit into the overall business strategy."

Regional airlines simply are not worth as much as they used to be, according to Neidl and other industry experts.

Neidl points to the fact that when Continental Airlines spun off its regional subsidiary unit ExpressJet in April 2002, it created a company worth about $1 billion, and raised $480 million. Now that company is worth just above $600 million.

Northwest was another major carrier to spin off a regional subsidiary when it held an IPO for Pinnacle in November 2003. That garnered Northwest just $271 million, with the stock selling below the expected range.

Father-son combination

And that's not mentioning some of the issues surrounding Comair that could frighten off potential investors, either public or private.

The airline, started by a father-and-son duo at the Cincinnati/Northern Kentucky International Airport in 1977, now has some of the highest labor costs in the industry. That's mainly because of its pilot contract. Comair pilots are among the highest-paid in the regional sector.

Most important, according to Neidl, Comair has no growth plan. Parent Delta told Comair earlier this year that it would not get any new planes in 2005 because its costs were too high, the first time in Comair's history that it will not add to its fleet. So it must make do with older planes while being unable to add new routes and more revenue. "That's a huge deterrent from anyone wanting to buy," Neidl said.

Comair also would still probably be tied to just Delta, unlike other carriers such as SkyWest that carry passengers for other airlines too.

"They are only out of one hub (Dallas) as well, and I'm not predicting that Delta will pull out of Cincinnati, but it increases the risk for a potential Comair investor," Neidl said.

The airline has a fleet that is starting to get older, which airline officials have previously said equates into higher maintenance costs.

Eighty-five of its jets were delivered before 2000, and several remain from as far back as 1993, when Comair became the first domestic carrier to use regional jets.

Still, Comair is one of the best-regarded airlines in the industry, and now has exceeded $1 billion annually in operating revenue, according to the Bureau of Transportation Statistics. It also is profitable, according to federal statistics, turning in an operating profit of $25.7 million, or 8.1 percent during the third quarter. Still, its operating profit margin has shrunk from more than 16 percent in the fourth quarter of 2003.

Remaking the model Even though Delta would not get back what it paid for Comair, it might be looking to shed itself of all but core operations as it remakes its business model, said another industry watcher, University of Portland (Ore.) business professor Richard Gritta

"They will still rely on (partnerships) to carry the regional and short-haul traffic," said Gritta. "But as they gear toward the long-haul routes where they can compete, this might be the time.

"Now is the time to start making some moves if you are a major carrier if you want to survive."

E-mail [email protected]
 
Reamy,


Gasp...gasp....gasp... You are trying really hard, and you aren't slamming me as much. In some ways that is good. I like constructive talk without slams, some of the time. It is obvious that you guys at ASA need a raise, but there will be hard ball tactics thrown at you by management, not Dalpa. It will be interesting to see where the final RJ rate will fall---will Comair's come down eventually and your's go up? Where will they meet? What is the acceptable pay rate for everybody---pilots and management? I think we all deserve to be paid more, but when will this spiral stop going down? I wish you guys good luck over there, and it will be interesting to see where "extra growth"= "extra pay". There has to be a point where management and labor agree and you get both. If you are already high on one side compared to others (like Comair)---management may not give growth until it comes down.


Bye Bye--General Lee
 
General Lee said:
Reamy,


Gasp...gasp....gasp... You are trying really hard, and you aren't slamming me as much. In some ways that is good. I like constructive talk without slams, some of the time. It is obvious that you guys at ASA need a raise, but there will be hard ball tactics thrown at you by management, not Dalpa. It will be interesting to see where the final RJ rate will fall---will Comair's come down eventually and your's go up? Where will they meet? What is the acceptable pay rate for everybody---pilots and management? I think we all deserve to be paid more, but when will this spiral stop going down? I wish you guys good luck over there, and it will be interesting to see where "extra growth"= "extra pay". There has to be a point where management and labor agree and you get both. If you are already high on one side compared to others (like Comair)---management may not give growth until it comes down.


Bye Bye--General Lee
ATR,
Sorry to offend your delicate sensibilities "brother."

Private,
Some of the time eh, alright I can live with that. Anyway, Those hardball tactics are already in play and have been for over two years as they have drug their feet on our contract. You will soon be seeing some hardball being played from our side. It's not likely that Comair's rates will come down anytime soon, they paid a pretty dear price for those. I can't see them being given away, they would probably shut it down again before that happens.

Where will RJ rates meet you ask? Since theirs aren't likely to come down and I get the sense that we will close up the shop short of getting theirs, look for them to meet where theirs are now and when their contract is up for renewal soon, they will continue to go up as they should.
 

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