crjdxr
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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....
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....