Experts predict Comair may be sold

[RichO]

Is Comair sold yet?????? Just thought I would check back and see.......


Oh, I forgot to ask several weeks ago, these "Experts" that are predicting that Comair and ASA will be sold, are they the same "Experts" that keep saying the economy is in a world of hurt and we should all go jump off a bridge because the economy is not recovering....if so, I think there should be a second opinion on this whole topic.......

 

[ATR-DRIVR]

Grinstein was asked specifically if there were plans to sell ASA/CMR. His answer was, "No, they are both profitable and there is no plans to sell them." Yes, he said profitable. He also stated that the planes coming to ASA were purchased BY ASA out of those profits. THAT

 

[ATR-DRIVR]

THAT question was asked by an attending mainline pilot.

 

[sleepy]

THAT question was asked by an attending mainline pilot.

Of course the mainline pilots want us to be sold. They seem to believe that the proceeds of such a sale could fund their lifestyle for a bit longer. If we are sold, I would think that the Company would use the proceeds to pay off some debt, seems like that would be in the best interest of the shareholders.

In the long-run, however, what seems to be in the best interest of the shareholders is to retain our highly profitable operations, and enjoy the combined $70 million profit per quarter for years to come.

 

[luvthedc10]

Dear General,

I understand your passion for Delta Airlines. In fact, I admire it. I fly for Comair, yet I grew up in a "legacy carrier" and I too wish them well and hope for my familys sake that there is some light at the end of the tunnel.

After reading numerous posts, I get the feeling that it is an us against you issue. I can assure you that there are a fine group of pilots here at Comair, some who wish to stay, others who do not. There are still plenty of pilots here that have dreams of being 777 captains, and believe it or not, are mainline friendly.

With that being said, take the RJDC out of the issue, we have a group here who did fight for a better contract. I cannot take credit, I was at another regional carrier at the time, but they brought the scale up where it should be, not above what it should be. Any business savy individual can look at Comairs structure, in the worst of times, with our "high" payscales, Comair is still able to pull in a 32 million dollar profit for a quarter. This does account for lease payments and all assoc costs that Comair accrues with their business, hence, it is a self-sestaining operation.

Being a professional from Delta, I look at your statement of "maybe you should look at your peers wages at Mesa," as a pretty bold remark. You know, I'm sure Comair could make 58 million with Mesas wages. But another point in case, they could make triple that if they paid us nothing at all, we could all work for free. When is enough, enough?

Do you know what Mesa scales are? As bad as things get with Delta, I'm fairly certain none of the pilots will be making 20,000 a year. Yet, that is what you condone for Comair. We don't need those scales to survive, to make a profit, we already are doing so. We need them to compete against one carrier Mesa, I don't think so. Give it all to them if thats what it comes to because I am a professional pilot, not a burger flipper, hey, but at least I could be home every night I suppose if I chose the later.

I wish the Delta pilots could keep every cent of their paycheck, I wished it for United, American and Northwest as well. But unfortunately, Delta competes with the LCC's, and they can't make a profit, even a small one, against these young,lean operations. They cannot support their business, and its not a matter of bringing down the pay scales to the lowest carrier amoung all of your competitiors, it is about making Delta money.

You can look at the RJ any way you want, you can call it dooms day for all I care, because whatever the future holds for it, Delta has benefited from them in the past and currently the present. Its not the answer to industry problems by any means, but it is used as a money making tool for the time being. I don't think that any of us strut around as loving our RJ's---its a busines tool that our company gives us to work, thats about it, so you won't see me defending it. But, ask any Comair pilot, and we will defend our pay. It is not out of the realm of reality and what the business can support.

I know not one specific piece of information that could draw a conclusion about what your pay rates should be, so that is why you never see me comment to the 30% debate. If we go into bankruptcy, then anything is up for grabs, including Comair. Until then, why do you want to bring our paycales down, just to make yourself feel better? It won't benefit you, because there is just not that much to give. Comair asked for 8 million between the pilots and flt attdts, compare that to Delta's quarterly loss and it is a drop in the bucket. It's the business plan that needs to change, and of course, the pilot wages are a part of it, but again, not the solution. United pilots really took a hit, but I do not see Air Wisconsin at Mesa wages.

It's pretty sad that our pilot groups as a whole are so disconnected. If the RJ operators worked with the Mainline Operators, we could actually combat the race to the bottom with the wages. Instead, it turns into a who is more important game, which is such a thing of the past. There are tons of great people at the regionals that would probably be Delta pilots today if the economy would dictate it. Those same people deserve a decent wage so that they can come fight the good fight at Delta someday cause they know what they are worth. Isn't that the type of pilot that you like General, or would you rather get all the ones the low ball themselves?

I think we are all on the same team, it would be nice if we could act like it. I know any time money is involved, it will be a deeply emotional issue. I too, General, love Delta Airlines. They are a great family of people, and I love the heritage that it represents (I was especially excited to see the FLY DELTA JETS sign lit up in Atlanta a few weeks back-very nostalgic). I don't wish ill will towards anyone at Delta, so why do so for Comair?

 

[RichO]

Keep in mind, actually as of the last year, it's not the economy effecting the profitability at the airlines, it's the fact that they can't sell seats to make a profit. The low cost airlines have beat the majors to the bottom thus creating a demand for those low cost seats. It's basic supply and demand....the demand is for low cost seats, (because the race to the bottom succeded), so the supply has to be low cost seats, under this structure the mainline guys can't make a profit.....the economy has nothing to do with it at this point...the economy is strong and getting stronger.....the problem with lowering the regional wages even lower is then Delta mainline is going to use that lower wage at the regionals to get their pilots to come down lower on their's ...if they don't they will just replace those routes with an RJ...(come on this is old news)........so, mainline guys should support higher wages at the RJ level.......that way we're not as cheep...but you throw in the guys like Mesa, skywest, etc....and the whole idea goes out the window because there are always guys who will fly for free........the only thing that will change the cycle we're in, I hate to say, is a decrease in the amount of pilots........once again, supply and demand........decrease the supply of pilots, and the demand will increase........don't you just love supply and demand.......

 

[General Lee]

lovethedc10,

My response with the line"maybe you should look at your peer level wages---at Mesa" was a response to someone telling me we should take the 30% pay cuts. I know we should have pay cuts, that is obvious. But, I don't want one group telling us how much to take when they themselves aren't willing to cough up a dime. If that is the case, then stay out of it. We will give up money when we NEGOTIATE a pay cut. I am frustrated with the fact of slow progress---and that is what Grinstein wants---to frustrate us. It is all a game of chicken. I am very glad that Dalpa takes it slow and analyzes everything carefully.

This whole thing with "you against me attitude" started with Comair managment's unwillingness to help our furloughs in their time of need. I will not go through all of this again, and I know some of the Comair pilots do not like this policy---but some do and that shocked me. I don't know of one Delta pilot who didn't want you to win your strike. The longer it went on, the more amazed we were that it wasn't going well. That is the truth, and the eventual backhanded slap from your managment and some of your pilots, and then the RJDC suit even after we gave huge RJ relief after 9-11, has put a sour note on relations.

Your pay wages at Comair are good---considering the "profits" you bring in. But, what happens when you guys start to compete more with LCCs as they grow? Then the RJs will NOT bring in the required "profits"--especially against LCCs that charge $49 a fare. Also, the excess number of RJs have added to major delays (look at ORD) and RJs also limit the number of passengers coming into our hubs---at a time when fares are dropping. What is the magic answer? Lower fuel prices and larger aircraft with more seats to spread out the costs. Even Airtran has seen this. And then airlines like Chataqua and Mesa have come in and offered services for half the price. We know that our pay gap is large and we are trying to negotiate a new one---but with a plan to go along with it. I know you guys are paid less and don't want to have to flip burgers on the side like you say---but just like us--our peer groups are lowering the bar because of increased competition and LCCs in both arenas---mainline and regional. To say that either of our pay scales will remain where they are in a few years is not seeing the full picture here. This is a downward trend for both of us. And, the only way guys in your position are going to make up the difference eventually is to move up the ladder at Comair(CR7 Capt), or move on to a Major or a LCC like Southwest or a Cargo outfit like Fedex. Unfortunately for you---Comair hasn't made too many friends with DL management (due to your strike), and with Dalpa (due to the RJDC suit and lack of help with our furloughs). Your senior guys over there are digging a large hole. But, I personally don't hold a grudge really---I have been stating my opinion here on this thread on what may or may not happen with a possible sale of ASA/Comair pre Chap 11 if that should occur. I realy have no clue, and have just posted opinions from some analysts. I hope this whole industry turns around and we all can have secure jobs----even though they will pay less.

Bye Bye--General Lee

 

[smarc130]

IM WITH STAYSEATED...

Hi ive been a bit busy, havent checked in in a while, but I see that blokes like the General still haven't got any hobbies. If I was a new kid trying to get into this line of work, listening to you guys would make me want to go S#$K D#$@s down at the bus station to regain my dignity. Sit Back, Relax and enjoy your industry, your never going to be the CEO.

 

[General Lee]

smarc130,

I have plenty of hobbies---and I have shared them with most of the guys/gals on this board. When I am not flying I lift wieghts, ride bikes with my wife (when it isn't too cold here in ATL), and go to movies etc....I just really enjoy aviation and this board, and I am just giving my opinion here---which could be absolutely wrong.

Bye Bye--General Lee

 

[RichO]

LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!.......................................smarc, come on now, you know where I 'm at right now, and there isn't much of a night life here............LOL!!!!!!!!!!!!!!!!!!! Dude, what's up with the Yanks this year??? Their starting to look like Seattle..........