Good News for Comair!

[blzr]

Sunday 8th August, 2004

Canada grants Delta a large loan


Big News Network.com Sunday 8th August, 2004

Delta Air Lines' Comair unit will become the first recipient of a new Canadian federal government loan program to stimulate Canada's aerospace sector.

Comair, a Delta feeder and frequent Bombardier customer, will get a hefty loan to buy 10 regional jets from Bombardier, Montreal-based aerospace company, the Globe and Mail reported Saturday.

The value of the loan, the first of the new Canadian program, will not exceed $250 million, officials said. The interest rate on the loan was not disclosed.

The loan comes at a critical time for Delta, the third-largest U.S. airline, as it seeks $1 billion in concessions from its pilots.



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[moscowcfi]

I know I should be getting really excited, since I'm in the pool, but you guys have turned this optimist into a skeptic. Shame on you all.

 

[Chosen One]

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Sounds pretty good to me, the link doesn't work though.

 

[blzr]

just go to usaviation.com. they have all the airline and aviation news you could ever want. sorry about the link not working.

 

[FN FAL]

Comair is subsidized by a socialist government? Ha, there is hope yet!

 

[79%N1]

How is it that Comair can announce financing for new aircraft whrn Delta has not announced an award to Comair for any addition jets to be flown? Just curious.

 

[CRJ puppy]

How is it that Comair can announce financing for new aircraft whrn Delta has not announced an award to Comair for any addition jets to be flown? Just curious.

Comair has made no such announcement. The reference is to a press release by the Canadian gov't that Comair was the recipient of a gov't subsidized loan...

 

[michael707767]

Not saying its going to happen, and just wondering outloud. so don't get upset. But, I would imagine that since CMR is owned by Delta, any aircraft purchased by them do not have to end up being operated there.

 

[Cyclonic]

Also just thinking outloud (since no one seems to have all of the facts yet):

Delta owns Comair.

Canada provides favorable loans for acquisition of new CRJs by Comair.

Comair doesn't poop without permission from Delta (so none of this could have happened without Delta's acquiescence).

Planes coming to Comair.

 

[standaman]

I personally think that the canadian government might be throwing this out with maybe alittle back door help from the folks in Cincinatti. And then again I could be wrong.

One mans opinion

 

[moscowcfi]

I think few could argue that this is bad news. This is good, since lately it seems like there is a lot of bad news. Just how good a news this is, however, remains to be seen. As someone pointed out earlier, Comair has not made any announcements yet.

 

[Broke in CVG]

Official word is that this is refinancing previously delivered planes. Previous planes were delivered with short-term financing under the condition that long term financing was obtained. This is the long-term financing for these 10 aircraft. The only optomistic spin is that it now opens up slots for the possibility of more aircraft via short term financing as the bank would only allow so much short-term to limit its liability.

 

[chperplt]

Official word is that this is refinancing previously delivered planes. Previous planes were delivered with short-term financing under the condition that long term financing was obtained. This is the long-term financing for these 10 aircraft.

Official word from who??? The only place I've seen this mentioned is by one person on the ALPA board. I haven't seen a memo from Randy that states this...have you?

 

[JetPilot_Mike]

I can't see why there would be any "word," if, in fact, this is just a refinance. Now, if we are buying new airplanes for other airlines, now that will suck.