Wholly owned Delta Connection carrier Comair is continuing its efforts to lower its cost structure with an aggressive plan to reduce its fleet, align employee staffing to a smaller operation and secure more competitive long-term agreements with its employee unions.
In a memo to employees Wednesday, Comair President John Bendoraitis told employees the carrier will accelerate the reduction of its aging, less-efficient fleet of 50-seat aircraft during the next two years while retaining its CRJ-700 and 900 aircraft. Comair also will realign its employee base during the next two years to what is needed to run a 44-aircraft operation, and work to secure new, competitive agreements with its labor unions.
“Our need to change is significant, and the scope of change will be difficult but necessary,” John told employees in a memo. “Our current cost structure - which remains approximately 20% higher than our peers on a cost-per-block-hour basis - does not enable us to be competitive in the current industry environment. To secure our future, we need to demonstrate our ability to operate as a standalone entity. We must be able to earn a profit while reducing our operating costs to what the market is willing to pay for our services.”
The adjustments will not directly result in any changes to the Cincinnati flight schedule or work performed by mainline Delta employees. Delta has committed to operate approximately 160 to 175 peak-day departures from CVG this year.
“Delta has announced previously our goal to reduce the use of less efficient 50-seat aircraft in our network in order to improve the overall efficiency of the fleet and expand the amount of service offered to domestic customers using the larger, two-class jets they prefer,” said Don Bornhorst, s.v.p.-Delta Connection. “Our goal is to ensure that each partner airline is independently positioned for success with a competitive cost structure.”
Comair said that all departments and areas, including operational and support, will be impacted by the staffing reductions, including leadership. The number of reductions will vary by department, and Comair leaders will be meeting with union leaders to explore their interest in offering voluntary exit packages for contract employees. For merit employees, Comair will offer severance packages that include financial and career assistance, as well as voluntary exit packages for scale employees.