The end of Comair

[CRJ puppy]

Personally, I see Delta starting up their own regional fleet here in a few years. They are keeping Comair's certificate active in order to do so. First Comair, next Pinnacle. I see an announcement coming out the next couple months about Pinnacle and the beginning of their closure as well. Hate to see that happen but very possible in my opinion.

Delta bean counters have quite a bit on the chopping block. Just today they pulled the contract for Regional Elite and issued the RFP for their handling. Regional Elite is closing up shop obviously. A lot of former Comair ground personnel went there and now they are going to be out of a job. Pinnacle lookout. I think you are next on the chopping block.

Comair's certificate is not being kept. It will be surrendered to the FAA on or before 12/31/12. It may not be sold or transferred.

 

[PBRstreetgang]

Isn't that because all the pilots sold their stock? or failed to exercise control through a voting block? why did ESOP fail?

UAL declared BK.....Do the math.

 

[pilotyip]

UAL declared BK.....Do the math.

Yes I heard about that, it was in all the papers. but the ESOP was back in the mid-80's why did it not work then?

 

[Freebrd]

Gojets and others do it so cheap, that it would be impossible to match their costs. The also includes the FAs, mechanics, and ramp/gate people. Instead, just cap the number and throw in a ratio that keeps it there. That is what the new contract did.


Bye Bye---General Lee

Sellout!

 

[thepotato232]

Yes I heard about that, it was in all the papers. but the ESOP was back in the mid-80's why did it not work then?

I think you're a little off on your timeline - the ESOP happened in 1994. The ugliness at UAL in the 80's was not about employee ownership, but it may have sown the seeds of the idea.

Following the ESOP, hindsight suggests that the new owners failed to translate their new-found leverage into a cohesive agenda. Each labor group ended up at loggerheads with management (and sometimes with each other) over contract improvements, and future governance of the corporation was a secondary concern. When UAL faced bankruptcy and the prospect of all stock becoming null and void, decision making power rested with the board of directors, of which the employee owners controlled only three seats. With labor's voice now safely irrelevant, and with a sympathetic government backing them, the board set United on its current path.

That's the Cliff's Notes version anyway, and there's still plenty of "spirited debate" over exactly what group is at fault for the ESOP's failure. And then you get comments like:

Wrong Wrong Wrong......It was whipsaw!!!!!!! Damn that whipsaw!!!!!

...which leave me confused about the mess all over again.

 

[pilotyip]

I think you're a little off on your timeline - the ESOP happened in 1994. The ugliness at UAL in the 80's was not about employee ownership, but it may have sown the seeds of the idea.

Following the ESOP, hindsight suggests that the new owners failed to translate their new-found leverage into a cohesive agenda. Each labor group ended up at loggerheads with management (and sometimes with each other) over contract improvements, and future governance of the corporation was a secondary concern. When UAL faced bankruptcy and the prospect of all stock becoming null and void, decision making power rested with the board of directors, of which the employee owners controlled only three seats. With labor's voice now safely irrelevant, and with a sympathetic government backing them, the board set United on its current path.

That's the Cliff's Notes version anyway, and there's still plenty of "spirited debate" over exactly what group is at fault for the ESOP's failure. And then you get comments like:

...which leave me confused about the mess all over again.

Thanks for the update, it has been a long time since reading "Hard Landing"

 

[Golden Falcon]

ESOP's fail in general, because "owner-employees" are inclined to choose immediate-short term increases in benefits as opposed to long term capital investments which in the end result in better conditions and higher stock value....the "blame" for the UAL ESOP was laid at the feet of the machinists union...accurate or not who's to say....

 

[flaps30]

Six years

ESOP's fail in general, because "owner-employees" are inclined to choose immediate-short term increases in benefits as opposed to long term capital investments which in the end result in better conditions and higher stock value....the "blame" for the UAL ESOP was laid at the feet of the machinists union...accurate or not who's to say....

Six years, wow .

 

[Golden Falcon]

no kidding...

 

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