When is Delta going to SELL/IPO CMR/ASA?

[jetflyer]

When is Delta going to SELL or IPO Comair and ASA?

With oil prices going high, it's going to be interesting to see the Profits(ha) or Losses of Delta in the second quarter. I'm sure the losses are going to be sizable.

I personally think Delta better sell Comair and ASA soon before Delta gets too much weaker or the VALUE of CMR/ASA will decline more.

I feel it's in the best interests of Comair and ASA employees to be sold/IPO'd as well. I'm with Comair and am hoping a sale/ipo happens really soon.
--Comair will then have the opportunity to contract with other carriers.
--Comair if sold would then not be dragged into bankruptcy WHEN Delta files CHAPTER 11.
--If Delta ultimately goes CHAPTER 7 one day, Comair would not be part of the LIQUIDATION to get the stakeholders some of their money back and could instead TRY to be their own independent airline like THE INDY-AIR EXPERIMENT. Oh how fun going it alone, but atleast it might give us jobs for a couple more years.

1)When do you guys think Comair/ASA will be IPO'd/Sold, if ever?

2)Comair/ASA pilots: Do you want to be IPO'd/sold OR stay owned by Delta?

Thanks for your comments,
Jet

 

[General Lee]

Well, you keep bringing this up so you are obviously worried or something. Remember, that as long as there are fare increases, the price of oil can keep going up. We have had 8 fare increases that have stuck over the last 8 months. Also, this is our best time of the year, so losses won't be as bad as the first quarter. Sure, there may be a loss, but it probably won't be as bad as the others.


As far as selling ASA or IPOing Comair, I think our management is reviewing those options. As to whether or not any of those options will happen, only Grinstein and Kolshak know. They have put out the "feelers" to see what they might be able to get, but I haven't heard anything other than that. Grinstein has publically said that we don't need to own them to profit from them. (Don't get mad Cmrflyr-----business is business) There probably wouldn't be much change if we did sell or IPO them, except somebody else would be signing the paychecks. Medflyer will undoubtable state that we may need Comair and ASA to "post bail" if we go to Chap 11, and that could be true. And, I don't care what you Comair fans think, the RJs have accumulated debt, and ridding ourselves of that would be useful. (Got that, DOH?) We would just have to find the right buyer, and maybe we haven't found that yet or the right price.

Recent word from the latest "incommand" session (new Captains meet with Grinstein and a bunch of the VPs) is that they would like to have fleet commonality eventually in mainline (probably 737-700 being the smallest DL mainline AC) and DCI running a mixture of 50 and 70 seaters ONLY. They acknowledged the high fuel costs, but said our $5 billion a year savings plan will show results eventually. Song will grow with more 757s also.


So, jetflyer, please relax and if you want to apply to a DCI and you are worried about a possible selloff, apply to these DCI airlines in this order: 1.ASA 2.CHQ 3.SkyWest 4.Mesa 5.Comair


Bye Bye--General Lee

 

[MedFlyer]

Remember, that as long as there are fare increases, the price of oil can keep going up. We have had 8 fare increases that have stuck over the last 8 months.

Apparently, your buddy Kolshak disagrees with your assessment:

"So far, the number of fare increases have only covered a fraction of the increased costs," Kolshak said in a telephone interview.

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050702/BIZ01/507020333/1002/BIZ

So General, you better start praying that fuel prices come down, because the fare increases aren't getting it done. Rememeber too that in September, demand will drop like a rock which means fares will drop too. DL will probably get through the summer ok, but this fall will be a blood bath.

And, I don't care what you Comair fans think, the RJs have accumulated debt, and ridding ourselves of that would be useful. (Got that, DOH?) We would just have to find the right buyer, and maybe we haven't found that yet or the right price.

Bye Bye--General Lee

You can push the debt on someone else, but you'll still have to pay for it. Whoever buys ASA/CMR would simply build the debt service into the fee-for-departure.

Unfortunately, I think DL has waited too long to sell ASA/CMR at a good price. If they had wanted to get a good price, they should have done it two years ago. Now, with fuel prices high and LCC's becoming more and more dominant, the value of ASA/CMR is minimal. DL will probably sell one of them, but the sale will do little to boost the bottomline.

 

[michael707767]

Apparently, your buddy Kolshak disagrees with your assessment:

"So far, the number of fare increases have only covered a fraction of the increased costs," Kolshak said in a telephone interview.

I tend to agree that the fare raises have not covered fuel, but.......do you really think Kolshak would come out and say anything good until we know about pension reform? They will continue to paint the worst picture possible hoping for pension help.

 

[General Lee]

Apparently, your buddy Kolshak disagrees with your assessment:

"So far, the number of fare increases have only covered a fraction of the increased costs," Kolshak said in a telephone interview.

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050702/BIZ01/507020333/1002/BIZ

So General, you better start praying that fuel prices come down, because the fare increases aren't getting it done. Rememeber too that in September, demand will drop like a rock which means fares will drop too. DL will probably get through the summer ok, but this fall will be a blood bath.



You can push the debt on someone else, but you'll still have to pay for it. Whoever buys ASA/CMR would simply build the debt service into the fee-for-departure.

Unfortunately, I think DL has waited too long to sell ASA/CMR at a good price. If they had wanted to get a good price, they should have done it two years ago. Now, with fuel prices high and LCC's becoming more and more dominant, the value of ASA/CMR is minimal. DL will probably sell one of them, but the sale will do little to boost the bottomline.

Kolshak would not be saying anything good until they get pension relief. Michael707767 is correct. As far as the September drop off, that is correct---it always happens like that. But, Summer driving also falls, and gas usually comes down. With our own budget cuts, we may be able to ride it through. Also, we are realigning our flights in Sep, like some Song flights going to except Tue and Wed, to allow for yearly maintenance. It is all a work in progress.

Fee For departure will stay competitive, because there are so many people out there that want the business. Saying that a higher fee will result due to the debt service is speculative. The new owners probably have better credit and could possible renegotiate the debt service at a better schedule, and since they are more likely to pay it off--the creditors may agree. Again, all speculative. But, the debt will float away with the new owners.


Bye Bye--General Lee

 

[Birddog]

When looking at an IPO or sale, an important question to ask is, ", who would want to buy/invest in an airline with a large fleet or RJs whose only flying comes from a mainline carrier struggling to keep its nose above water?" There is no shortage of RJ's out there. There is no great secondary market to convert them to cargo or corporate airplanes. I would not be surprised to learn that Delta has been quietly shopping CMR or ASA around and has failed to get any decent offers. If Delta doesn't want to own us, why should anyone else?

 

[michael707767]

If Delta doesn't want to own us, why should anyone else?

I don't think its a case of Delta not WANTING to own you so much as Delta not being able to AFFORD to own you........two totally seperate things.

 

[General Lee]

When looking at an IPO or sale, an important question to ask is, ", who would want to buy/invest in an airline with a large fleet or RJs whose only flying comes from a mainline carrier struggling to keep its nose above water?" There is no shortage of RJ's out there. There is no great secondary market to convert them to cargo or corporate airplanes. I would not be surprised to learn that Delta has been quietly shopping CMR or ASA around and has failed to get any decent offers. If Delta doesn't want to own us, why should anyone else?

Look at the number of investors lining up to try to get a piece of the USAir and AWA combo.... There is no shortage of people who want to lose money apparently.


Bye Bye--General Lee

 

[Birddog]

Look at the number of investors lining up to try to get a piece of the USAir and AWA combo.... There is no shortage of people who want to lose money apparently.


Bye Bye--General Lee

Good point, but, and this is only my armchair quarterback opinion, its apples and oranges. With America West/USAir, people are hoping that the result will be at least as good as the sum of the parts. With ASA/CMR, there is no similar strength to sell. As Michael pointed out, Delta may not be able to afford to own us as opposed as not wanting to. Either way, it is not a good position to try and sell something from. I am concerned as to what this will mean for ASA/CMR. There are other ways to get rid of us...

 

[cmrflyer]

I agree with with the general, the sooner comair gets ipo'd the better. Nobody at comair wanted the buy out, Delta got heavy handed and said sell or you loose your contract to fly for us.

It would be nice to be our own airline again and not get dragged down by stupid managment decisions.

The sooner the better.

 

[General Lee]

I agree with with the general, the sooner comair gets ipo'd the better. Nobody at comair wanted the buy out, Delta got heavy handed and said sell or you loose your contract to fly for us.

It would be nice to be our own airline again and not get dragged down by stupid managment decisions.

The sooner the better.

Huh? You may not like the "real world" Cmrflyer. You would likely have to take a large pay cut just to be able to compete with the likes of Mesa and others that will "do it cheaper." Your new owner would stress this to you, saying "to be competitive and be able to get new contracts, we need to cut costs EVERYWHERE." Your industry leading rates (like our old industry leading rates) would go bye bye. Sure, I want us to sell or IPO you guys---but not because I don't love you guys, but rather for the needed cash or debt relief. It will never be like the "old days" at Comair---there will always be outward pressure from the likes of Mesa or others that will offer lower fee for departure services, and you will have to compete with them. We have learned that lesson too----the LCCs cost less, and now we make less. It's a new world.


Bye Bye--General Lee

 

[General Lee]

Good point, but, and this is only my armchair quarterback opinion, its apples and oranges. With America West/USAir, people are hoping that the result will be at least as good as the sum of the parts. With ASA/CMR, there is no similar strength to sell. As Michael pointed out, Delta may not be able to afford to own us as opposed as not wanting to. Either way, it is not a good position to try and sell something from. I am concerned as to what this will mean for ASA/CMR. There are other ways to get rid of us...

Even if we do sell you guys, it sounds like not much would change flying wise. I am sure there would be an extended contract attached to it. Medflyer thinks there would be an added fee to the fee for departure scheme, but that is only speculation. Some investors would see it as a bargain--compared to the actual purchase price a few years ago. And, some billionaires want to become millionaires.


Bye Bye--General Lee

 

[jetflyer]

I agree with with the general, the sooner comair gets ipo'd the better. Nobody at comair wanted the buy out, Delta got heavy handed and said sell or you loose your contract to fly for us.

It would be nice to be our own airline again and not get dragged down by stupid managment decisions.

The sooner the better.

Cmrflyer,

I am also a Comair pilot, and I agree "THE SOONER WE'RE SOLD OR IPO'D THE BETTER"

Delta's best chance of survival is a MERGER.

Delta is a sinking ship without a merger. Ch 11 would stink for Delta. I don't see Delta surviving CH 11 bankruptcy. Grinstein has even said Delta is in really BAD SHAPE to enter CH 11, and it's a place he "REALLY WANTS TO AVOID".
--Delta has most of their assets tied up as collateral already so getting exit financing would be VERY DIFFICULT.
--DELTA has almost no cash and a sale of CMR/ASA wouldn't help but for a couple months.

If Comair is still owned by Delta when they CH 11, that's bad news for Comair.
--If Delta doesn't survive CH 11 and LIQUIDATES,while owning Comair, wouldn't COMAIR BE LIQUIDATED ALSO??
--Wouldn't Comair's planes and assets then be sold off to give the Delta's major stakeholders some of their money back??

SELL US NOW while you can still get more than a Big Mac, Fries, and a Coke for US!

Jet

 

[bafanguy]

ASA and CMR are both up for sale...nobody wants them. Word from the inside.

 

[General Lee]

Cmrflyer,

I am also a Comair pilot, and I agree "THE SOONER WE'RE SOLD OR IPO'D THE BETTER"

Delta's best chance of survival is a MERGER.

Delta is a sinking ship without a merger. Ch 11 would stink for Delta. I don't see Delta surviving CH 11 bankruptcy. Grinstein has even said Delta is in really BAD SHAPE to enter CH 11, and it's a place he "REALLY WANTS TO AVOID".
--Delta has most of their assets tied up as collateral already so getting exit financing would be VERY DIFFICULT.
--DELTA has almost no cash and a sale of CMR/ASA wouldn't help but for a couple months.

If Comair is still owned by Delta when they CH 11, that's bad news for Comair.
--If Delta doesn't survive CH 11 and LIQUIDATES,while owning Comair, wouldn't COMAIR BE LIQUIDATED ALSO??
--Wouldn't Comair's planes and assets then be sold off to give the Delta's major stakeholders some of their money back??

SELL US NOW while you can still get more than a Big Mac, Fries, and a Coke for US!

Jet

Wow, we have an RJ pilot Major CEO wannabe at Comair. Come on now. You don't think DL would survive a Chap 11? You don't? Grinstein said at that incommand session that we would survive regardless of what happens. He said we have good investors already---GE and AMEX----that are "impressed" with what we have accomplished so far. They know that fuel is hurting this whole industry somewhat, but they also see what we done with the budget and what we are continuing to do. He said they are doing what they can to stay out of court, and that our cutbacks will provide fruit eventually.

Getting financing would be difficult, eh? Look at USAir and AWA and their merger. Everyone thought USAir would be dead by now, and now they are merging their lopsided operations with a LCC large on the West Coast. Financing units are lining up regardless----infact a new one today came up with an extra $65 million out of nowhere. USAir got rid of their pensions and some of their debt, but still doesn't really have a well defined plan. They have submitted a bankruptcy plan to the judge as of late, but it is hard to figure out exactly what is going on. If we were to merge with someone, it would be with someone that compliments our routes and theirs. We may not have to do any of that.

Why would Grinstein say Chap 11 is a bad place he wants to avoid? He is still trying to get pension reform. If we don't get that, then they will probably have to go to court to release us of that financial burden. But, Grinstein would NOT go Chap 11 if he knew we wouldn't be able to get out. They have a plan, and the plan is to survive. As far as Comair and ASA----they will likely be sold IF needed.

Maybe if we sold Comair now they could become the next RJ LCC----like Indy Air. Pay cuts would rain down on you soon after the sale.


Bye Bye--General Lee

 

[doh]

The non wholey owned are the only ones who can get financing for new and bigger aircraft. The sooner we can get sold the sooner we can start to thrive again. Bring it on General! Oh, I believe Delta will survive. I just don't think they have any thing good planned for any one at Comair. We were a lot better off before the Delta fiasco. JMO.

 

[MedFlyer]

But, Grinstein would NOT go Chap 11 if he knew we wouldn't be able to get out.

Bye Bye--General Lee

Grinstein doesn't necessarily have a choice. If DL's cash gets down to $1Billion or less, he will HAVE to file CH11. Regardless of whether or not DL can make it out, he won't have a choice. This team claims to have a plan to survive, but so far that plan isn't working, so well.

The plan called for oil prices to fall to $35-40 a barrel. Virtually every other airline out there expected oil prices to be higher, but only DL's crack team thought oil prices would fall. Because they were so off the mark, DL is now losing more money than planned.

DL continues to bring in lots of high CASM RJ's...even though you yourself said the high-CASM RJ's don't work against LCC's. Guess what, DL is putting RJ's head to head with WN on FLL-TPA and FLL-JAX starting next week. DL also keeps adding more long-distance RJ flights.

DL's plan called for better customer service, yet DL continues to cut service. On many DL first class flights, DL offers the same or less food than WN or B6.

DL's plan continues to put more and more flights through ATL. Now when the weather goes bad there, all hell breaks loose. DL can't reroute people through other hubs, because those other hubs don't have the capacity to handle even a small number of those pax.

As for AMEX/GE, they don't necessarily believe DL is doing well. GE doesn't want DL dumping a ton of planes on the market, so they'll prop DL up for the time being. But as other carriers get stronger, a time will come when GE won't need to keep DL propped up. AMEX gave DL a big vote of no confidence when they got into bed with JetBlue two weeks ago. For years, AMEX has only done business with one US airline...Delta. Now, AMEX sees that DL is slowly dying so they are drumming up new business with JetBlue....apparently they weren't so "impressed" with Delta after all.

 

[inthewind]

I hate to rain on the Comair pilots' parade again but here goes. Question: What is the common link between all of the carriers that are losing money today? Answer: RJs. Their CASM is too stinkin' high to make money no matter what you pay the crews when fuel is $60+ bbl. You might say 'but we're fee for departure, same price every flight'. Well yes and no. The crew, ramp, lease and landing fees are the same but fuel is not. Guess who buys the gas, that's right kids, Mother Delta, United, Continental, Northwest, Independence. I'm sorry but the fuel burn for an RJ is not much better than that for a 737 or a Scarebus. I'm not slammin' the crews, hell I flew the damn things for almost three years before the hammer fell at Indy. Just stating the sad facts. The mainline guys are right, [/B]it's the fuel costs, stupid


No really, not flame bait. Please discuss.


Live to Ride, Ride to Live.

 

[twobits]

General, you keep bringing up the point that RJ's have riddled Delta with Debt. That is true, however, the RJ's are accumulating a positive cash flow when compared to the average cost of capital they are buying them with. So, how do businesses make money? Leverage. What does that mean? Debt!!! you just have to make enough to cover the payment of the debt plus your required profit margin. ASA and Comair are doing this, which is one reason they have grown rapidly over the last few years. Sure, the casm may be slightly higher on an RJ but it is makes much more sense to use ASA on ATL to Shreveport 6 times a day rather than having two mainline flights a day. my $.02

 

[jetflyer]

Why would Grinstein say Chap 11 is a bad place he wants to avoid? He is still trying to get pension reform. If we don't get that, then they will probably have to go to court to release us of that financial burden. But, Grinstein would NOT go Chap 11 if he knew we wouldn't be able to get out. They have a plan, and the plan is to survive. As far as Comair and ASA----they will likely be sold IF needed.

Bye Bye--General Lee

General Lee---
"Things are great"
"Things are peachy"
"Those pesky pensions are just financial burdens"
"Delta is strong and getting stronger"
"Fuel surcharges will save the day"
"When we sell Comair/ASA we'll be almost completely debt free!!"
"People are lining up to throw money at Delta"
"Delta hasn't failed to plan, and certainly doesn't plan to fail"

Does everyone remember that IRAQI, grey haired goon that did newscasts on IRAQI TV every night when we were attacking Iraq? He to the very end, even as we entered Baghdad, was saying how the Iraqi's were kicking the U.S. militaries arses etc. It was very comical.

General Lee reminds me of that guy.

Sell Comair for $10 Million if that's all you can get. Heck pay someone $10 Million if you must if no buyer can be found! JUST GET RID OF COMAIR!!
Jet

 

[General Lee]

Man alive. I sure do get a lot of responses. I will try to answer each.


Doh,

Maybe Comair will be sold or IPO'd, but it won't be great news for you guys. If and when it happens, the new owner will tell you that it is "time to be competitive." That really means PAY CUTS. Delta pays you more than any other regional, and even though I believe most regional pilots aren't paid enough, management doesn't think that way. They see you as being paid a lot more than most, and that would have to change to "be competitive." You have a contract, that is correct. When it is up, and you have a new owner (if you do), you will get a huge pay cut so you can bid those other contracts to fly feed for other airlines. That won't be fun, and I have been there already. Also, with all of your RJs, you don't want to be a stand alone carrier. You wouldn't last long against expanding Southwest, Airtran, and Jetblue. Right now you are profitable because we mostly put you on routes that LCCs don't serve directly. (sometimes we do, though)

Medflyer,

The plan is working, except for one part---oil. Did you know that it would get to $60 a barrel? I didn't. Did you buy any oil futures? You're right that high oil will not help our cause, but the rest of the plan is going very well. Our CFO--Palumbo, said that we have already hit 80% of our planned transformation in record time----faster than he has ever seen it done. Part of that is because we have only one major union---which is another attractive thing about our company (to potential investors). And yes, if we get to a certain cash level, we may have to file. That is true for everyone, and all of the majors are dealing with that right now (except the LCCs). Here are the good things going on at Delta right now:

1. Pilots and other employees gave big bucks for savings
2. Got rid of RJ hub--DFW, which was $ucking us dry
3. Started to advertise, and started Simplifares
4. Operation clockwork---doing wonders in ATL (during good weather)
5. working with major creditors--GE and AMEX---and allowing us flexibility
6. Song is growing, giving us a great tool against Jetblue--point to point
7. up to $5 billion a year in savings by 2006
8. short term fuel hedging---10%, not great but better than nothing

Bad things at DL:

1. Debt looming
2. Pension payments looming, trying to get pension relief through Congress
3. High Oil


If we have to go to Chap 11, two of those will be changed. The only thing we can't change is high oil. As far as investors or DIP financing while in Chap 11---it has been apparent that other airlines have not had any trouble getting either, and their assets sometimes have been minimal too. USAir owned very little, and they have people waiting in line to get onboard. United, without the pensions, has been approached by Texas Pacific group and another group headed by Gordon Bethune. United really hasn't formulated a plan yet, after 3 years in Chap 11, and we have. What does TED do anyway? It goes through hubs and point to point....? What I am saying is that our guys probably do have a plan----and hopefully that does not include Chap11, but if it does there will hopefully be something on the other side. And how do you know GE doesn't think Delta is doing well? We were told in a memo that they (GE and AMEX) were "impressed" with our progress (going for $5 billion a year cuts). Sounds probable to me. And, is there something in a contract that says AMEX can't use other airlines? The Skymiles card has 25 million customers. Yeah, they don't think that is worth it.....???? Come on now.


inthewind,

Don't say that out loud, you might get ambushed by an RJDC member or Medflyer. He thinks he is saving the WORLD with his RJ. (Just like the RJ saved DFW) The RJ is good for route finding, point to point away from hubs, and hub feeding to cities that don't have LCC service. Throw a LCC mainline plane in the mix, and the RJ is sunk most of the time with the business traveller.


twobits,

The reason the RJ service has grown is because Fred Greed (who is gone now) thought businessmen wanted FREQUENCY. He got that wrong. What did AirTran do with their RJ feed? They dumped it. How about Southwest? Never had it. How is INDY air doing with their majority RJ fleet? Worse than we are. Jetblue is starting with 100 seaters as their smallest plane. Good idea. The way to make money with low fares is high seat numbers. You can spread out the costs with more seats. If an RJ with 50 or 70 seats goes up against a Southwest 737 with 125 or so seats, Southwest can charge a fare that would make them money, but not on an RJ. Southwest , Jetblue, and Airtran are growing. Mainline hasn't gotten many new planes since 9-11 (some 738s and maybe a few widebodies---not many) and we actually parked our MD-11s too soon. The ex VP of Marketing (Vicky E.) stated that "She didn't think the loads would have been so good after the invasion of Iraq." Infact, we had record loads that Summer, and we parked all MD-11s just before it. There were many management blunders, and almost all of them are GONE now.



Jetflyer,

I don't always say things are "peachy." I tend to be upbeat, but I know what might be out there. I think we finally have people that want this airline to succeed (even with Gay Pride float sponsorship....). But, we may be too late with our initiatives. They are trying to do what they can, and hopefully more fare increases will come with the higher priced oil. It is their job to monitor that and make decisions. Leo Mullion waited too long, thinking USAir would die in the meantime. Never happend. Grinstein is working hard, and he should be on a golf course by now. He isn't, though. He still makes time to go to the incommand meetings, and is very straight forward. There is a plan out there.
You can continue to see all the bad, and your situation may warrant that. I really enjoy my job. I wish you did too.


Bye Bye--General Lee

 

[viper548]

Muhammed Saeed al-Sahaf. The Iraqi Information Minister.

Some of his best:
"There are no American infidels in Baghdad. Never!"
"Our initial assessment is that they will all die"
"God will roast their stomachs in hell at the hands of Iraqis."

"They're coming to surrender or be burned in their tanks."

"No I am not scared, and neither should you be!"

"Be assured. Baghdad is safe, protected"

"Who are in control, they are not in control of anything - they don't even control themselves!"

"We are not afraid of the Americans. Allah has condemned them. They are stupid. They are stupid" (dramatic pause) "and they are condemned."

"The Americans, they always depend on a method what I call ... stupid, silly. All I ask is check yourself. Do not in fact repeat their lies."

"I can say, and I am responsible for what I am saying, that they have
started to commit suicide under the walls of Baghdad. We
will encourage them to commit more suicides quickly."

"I triple guarantee you, there are no American soldiers in Baghdad."

"They're not even [within] 100 miles [of Baghdad]. They are not in any
place. They hold no place in Iraq. This is an illusion ... they are
trying to sell to the others an illusion."

"they are nowhere near the airport ..they are lost in the desert...they can not read a compass...they are retarded."

"They are not in Baghdad. They are not in control of any airport. I tell you this. It is all a lie. They lie. It is a hollywood movie. You do not believe them."

"Our estimates are that none of them will come out alive unless they surrender to us quickly."

"Their infidels are committing suicide by the hundreds on the gates of Baghdad. Be assured, Baghdad is safe, protected."

When told coalition troops occupied Baghdad airport -
"...at Saddam Airport? Now that's just silly!"

 

[General Lee]

Yeah, I look like him too------time to hit the gym....... I tend to be on the positive side, and if that is wrong, then sue me.


Bye Bye--General Lee

 

[jetflyer]

You're always so positive when it comes to Comair. You wouldn't ever hold a grudge or anything ......

I hope and pray you're right about Delta General. Let's cross our fingers and hope we can pull it off. I also hope the sale of Comair helps us all.

Let's hope,

Jet

 

[General Lee]

You're always so positive when it comes to Comair. You wouldn't ever hold a grudge or anything ......

I hope and pray you're right about Delta General. Let's cross our fingers and hope we can pull it off. I also hope the sale of Comair helps us all.

Let's hope,

Jet

Agreed. I keep saying that a possible sale would be "business"---and that things probably wouldn't change, except for who writes the pay check. And, as far as my grudge, we all know when that started.


Bye Bye--General Lee

 

[Tomct]

Well GL, I don't agree with you on the DFW hub. We were doing a lot of good business there and mother D just handed it over to AA. We had a lot of customers that were very upset at the fact that they were going to have to switch to Eagle from ASA! Believe it or not, we had a TON of faithful pax that preferred the RJ to mainline for one fact....They actually got Service!! No FA hiding in the galleys reading when their fat asses should be working! Yes, I know that we have some big people here, but most of them "bust a move" to serve the passengers to the best of their ability while those on mainline try to AVOID serving the passengers! I commute to/from work and see it first hand! Easy on the shoulder press!!

 

[StaySeated]

Be careful what you wish for

I am rather surprised by the number of people that are actually hoping to get sold in this economic era and stage of the game in aviation. Comair was very successful in the past, but the aviation world could not be more different today. I am not starting a pissing match here with other groups, but in the 90's there just was not the "small jet" whip saw to the extent that there is today. Do you people actually want to be a part of an RFP as an independent carrier against a company like XYZ (insert whatever air carrier you like here, I just don't want to get off topic and hurt someone's feelings). If you thought the "three year pay/longevity freeze for nothing" sucked wait until your costs are compared to other independents in a fee for departure war, or even worse, a pro rata agreement. Ask air whilly how well that went three years ago with Bain consulting and the UAL feeders. It was the beginning of the end of their code sharing agreement and now their industry leading contract is decimated and they have 15 year captains commuting from a closed home base in denver to philly. In 2002-3 air whilly and comair had very similiar pay and work rules. The parallels between what they went through and what comair is about to go through with a DAL bk are frightening ESPECIALLY when you consider the whip saw pilot groups that are now entrenched in both companies feeder system. It is obvious to me that independence is not the way to go. What ever happens, one thing is for sure, we are all totally fuked either way. I can't control the destiny of the airline I work for, therefor I am focused on the things I can control, like my exit strategy/back up plan.

 

[PropsR4Boats]

Delta’s mainline flying accounts for roughly 85% of the available seat miles marketed by Delta Airlines. That leaves 15% to be done by the regional affiliates. Of that 15%, 80% is flown by Comair and ASA (they both share a fairly equal portion of that). This equates to Comair and ASA flying a total of 11% of Delta’s marketed flights. If delta were to lose direct control of this large of a percent of flying they could see total cost increase by 3 cents per seat mile on 11% of there flying. This in turn will increase the total cost 1-2%. In Delta’s situation that is lose of 2%. In other words Delta could see lose (after the sale) of $75,000,000 per year, every year. In more other words the revenue generated by owning Comair and ASA would out weighs the cash gained by selling the two in a very short span. They just have to hang on to rep the benefits. These are rough numbers!

 

[cmrflyer]

When talking about costs, I would hope you could get your facts straight first, even the Generals old mate has been known to say Comair has the lowest costs of any regional. I sure he can't be "wrong" on this.

Delta is hanging on, it dosn't look good and the clock it ticking. Selling Comair now is better than dragging us down the shi**er with you. I'd rather take a pay cut from new managment rather than from a judge.

 

[PropsR4Boats]

Everyone takes the bait. They can't take it if the courts don't see it fit. Until then they may just be lying to you. If the CEO is a true pro he does not want his name to go do the craper too. He will find a way to make it out, and /or grow if not they need new ideas. There is no reason you should be paying fares for the pax. I think the SWA guys and gals make a tad more than the Delta & UAL 73 bros and hoes, and they are not paying for there pax to fly. No, in fact they get more cash if the company does well.