Interesting Comair 1113c tidbit

[crjdxr]

From page five of the Declaration of Edward H. Bastain -

9. When all the costs of the Comair flying are measured against the revenues
received from such flying, the Comair regional flying resulted in a loss of $120 million in 2005, and is currently projected to result in a pre-tax profit of $50 million for 2006.1 While this represents an improvement, it is by no means a sufficient improvement, because other regional carriers are able to offer the same capacity as is provided by Comair at materially lower costs.

10. For Delta to be a successful competitor, it must be competitive in every area of its business, including the price it pays for regional flying. Delta cannot afford to purchase regional flying capacity from Comair at costs higher than are available in the open market.

11. Only if Comair can restructure its costs will it be positioned to compete for Delta Connection flying as well as being able to competitively bid to supply regional flying to other mainline partners. A successful restructuring would also enable Comair to be monetized as an entity if necessary to Delta’s successful restructuring.

http://chapter11.epiqsystems.com/WebPortal/docket/docketlist.aspx

Docket Number 3481

An overview of the Delta Business Plan is in his declaration as well. Interesting read....​

 

[ArcticFlier]

From page five of the Declaration of Edward H. Bastain -

9. When all the costs of the Comair flying are measured against the revenues
received from such flying, the Comair regional flying resulted in a loss of $120 million in 2005, and is currently projected to result in a pre-tax profit of $50 million for 2006.1 While this represents an improvement, it is by no means a sufficient improvement​

A $170,000,000 turn around may not be what one would like to see long term, but but it's pretty damn significant in my book. It's only one year........sheesh.


AF ​

 

[crjdxr]

FWIW and FYI type stuff.....

From the Declaration of Shawn Anderson, Vice-President of Supply Chain Management and Delta Connection.

Footnote 8 at the bottom of page 9 -

The fourteen RFP recipients include SkyWest Airlines, Mesa Airlines, Chautauqua Airlines, Shuttle America, Mesaba Airlines, Big Sky Airlines, Horizon Air, Air Wisconsin, Atlantic Southeast Airlines, Comair Airlines, Pinnacle Airlines, TransStates Airlines, PSA Airlines, and ExpressJet Airlines.


So these were the 14 that were invited to bid. I wonder which carriers actually submitted a bid.

28. In Comair’s case, my initial review of the bid submissions indicates that one or more viable competitors have underbid Comair by a substantial amount on the 70-seat flying. Indeed, Comair’s bid on the 70-seat flying is among the highest of all the 70-seat bids. Thus, absent a material change in Comair’s bid, Comair’s bid on the 70-seaters will not be competitive.​

29. In addition, multiple viable competitors have presented bids for the 50-seat flying that are substantially lower than Comair’s bid. Thus, based on my initial review, I believe Comair’s bid on the 50-seaters is not as competitive as other bids. However, Comair has also recently informed us that, in the event it loses a significant portion of its 70-seaters, its costs on the 50-seaters would increase and its previous bid would not accurately reflect its costs. In that event, Comair’s bid would become even more uncompetitive.​

31. Comair’s bids for the new turboprop and 76-seat flying were priced on an
incremental basis assuming Comair kept all of its current Delta Connection flying. If Comair loses any significant portion of its existing flying, its unit operating costs will increase and Comair's bids for new flying will no longer accurately reflect Comair's costs of operating the aircraft. Because of this speculative aspect of Comair's bid, it is less likely that Delta will consider Comair's bid to be competitive for such flying.​

 

[~~~^~~~]

Well, ASA isn't an independent airline. We can't bid and if we did bid, the bid came from a Utah Post Office.

The bidding is a sham anyway. Delta already knows Comair's costs to the penny - heck they own and run the thing. Also, Comair is a Delta asset.

As soon as Delta is in a position to get financing I expect Comair to grow, which would reduce costs more than pay cuts. Further the Comair and Delta MEC's should get together and lock out everyone else.

I'm more bullish on Comair than SkyWest, or Republic, if Delta survives.

 

[General Lee]

Well, ASA isn't an independent airline. We can't bid and if we did bid, the bid came from a Utah Post Office.

The bidding is a sham anyway. Delta already knows Comair's costs to the penny - heck they own and run the thing. Also, Comair is a Delta asset.

As soon as Delta is in a position to get financing I expect Comair to grow, which would reduce costs more than pay cuts. Further the Comair and Delta MEC's should get together and lock out everyone else.

I'm more bullish on Comair than SkyWest, or Republic, if Delta survives.

Comair an asset? How about a liability? That is more like it. As I stated long ago, everyone will get a paycut. Everyone. IF you don't like it, you will be shrunk or liquidated. Feed is feed according to our management. They will go for cheap, and if reliability goes down, they will replace it with another cheap feed. I think the RJDC should throw up their arms is disgust, and then sue somebody....?

IF Delta survives? Huh? I think ASA and Comair will be long gone before we go away. Expect our emergence from BK in late March.


Bye Bye--General Lee

 

[007]

Comair an asset? How about a liability? That is more like it. As I stated long ago, everyone will get a paycut. Everyone. IF you don't like it, you will be shrunk or liquidated. Feed is feed according to our management. They will go for cheap, and if reliability goes down, they will replace it with another cheap feed. I think the RJDC should throw up their arms is disgust, and then sue somebody....?

IF Delta survives? Huh? I think ASA and Comair will be long gone before we go away. Expect our emergence from BK in late March.


Bye Bye--General Lee

So, you took a paycut, and now everybody has to. Come one GL isn't that a little childish.

 

[outtahere]

Boy with friends like the general who needs enemys? At a time when mainline pilots should be fighting hard to protect regional pay so as to preserve their own, you get a piss ant like gl who wants to see everybody suffer!

 

[crjdxr]

A $170,000,000 turn around may not be what one would like to see long term, but but it's pretty dang significant in my book. It's only one year........sheesh.


AF [/left]

Yep, and no one is talking about that. Sheesh is right...

 

[CoATP]

FWIW and FYI type stuff.....

The fourteen RFP recipients include SkyWest Airlines, Mesa Airlines, Chautauqua Airlines, Shuttle America, Mesaba Airlines, Big Sky Airlines, Horizon Air, Air Wisconsin, Atlantic Southeast Airlines, Comair Airlines, Pinnacle Airlines, TransStates Airlines, PSA Airlines, and ExpressJet Airlines.

Hmmm ... Mesaba and Big Sky? ... No G*Jet but TransStates Hmmmm. again

and Mesa [no comment]

 

[Jeepman]

General Lee childish? NO! IT CANT BE!!