The new Comair ?

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This article sums it up. There are some strange things being talked about at Comair. I don't suspect Fly I.ver2 out of CVG, but another version of Republic might get around scope by offering some sort of J4J deal while simultaneously lowering labor costs.

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050119/BIZ01/501190320/1076/BIZ

And just when we thought things might be returning to normal.

 

[FDJ2]

Some mainline airlines may drop their regional partners, said Buttrell, who added there would be a lot of excess capacity as a result. "We need to be able to adapt to that," he said.

It's just a matter of when and how? I could see an IPO or sale to either MESA or Republic.

 

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It's just a matter of when and how? I could see an IPO or sale to either MESA or Republic.

Perhaps an IPO, but the net proceeds to Delta would not be greatly dimished after GE gets paid back for its holdings. In effect, ASA and Comair have already been sold as collateral for Delta's financing.

I don't think Comair would appeal to MESA, or Republic. Both of those outfits place a premium on new growth and junior pilots. Skywest, maybe, but ASA is a better fit for Skywest.

The problem for all of these small jet lift provides is that their "brand" is the major airline. Airtran, Fly I and Midway all proved that RJ's only work when feeding a network carrier and obtaining relatively high incremental revenue apart from the LCC "cherry pickers." If the "brand" network carriers fail there is no market for the RJ's. They are symbiotic.

 

[601Pilot]

Perhaps an IPO, but the net proceeds to Delta would not be greatly dimished after GE gets paid back for its holdings. In effect, ASA and Comair have already been sold as collateral for Delta's financing.

I don't think Comair would appeal to MESA, or Republic. Both of those outfits place a premium on new growth and junior pilots. Skywest, maybe, but ASA is a better fit for Skywest.

The problem for all of these small jet lift provides is that their "brand" is the major airline. Airtran, Fly I and Midway all proved that RJ's only work when feeding a network carrier and obtaining relatively high incremental revenue apart from the LCC "cherry pickers." If the "brand" network carriers fail there is no market for the RJ's. They are symbiotic.

I don't know why Comair couldn't pick up any flying that is up for bid; they
have the lowest CASM of any RJ outfit. It should be a piece of cake.

 

[michael707767]

This article sums it up. There are some strange things being talked about at Comair. I don't suspect Fly I.ver2 out of CVG, but another version of Republic might get around scope by offering some sort of J4J deal while simultaneously lowering labor costs.

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I really doubt you would see CMR pilots agree to any sort of J4J deal.