alphaone
Well-Known Member
This is from the Cincinnati Enquirer. CVG is probably more of a Comair town. Alot of people feel really connected to the company after watching/helping it grow to what it is today, and alot of people are really upset with what is happening. I wonder how this will turn out and how it will affect Delta's presence at the airport down the road......
Delta puts squeeze on Comair
Editorials
Delta Air Lines' restructuring in Chapter 11 bankruptcy is taking more than just Delta employees on a white-knuckle ride.
The airline's filing to void Comair flight attendants' contract risks provoking a second strike to go with one already threatened by Delta pilots. Both could come to a who-blinks-first showdown this spring as the busy travel season heats up. Back-to-back job actions against the No. 3 U.S. air carrier could cripple Delta's restructuring strategy and play havoc with local travelers' plans and airport revenue at the Cincinnati/Northern Kentucky hub.
Delta officials say they'd rather their pilots and flight attendants consent to concessions than be compelled by court cancellation of contracts. One surprising development is that Delta reported Comair lost $120 million in 2005. That news could further narrow Delta's options, if it seeks to downsize by spinning off its regional subsidiary. About 4,000 of Comair's 7,000 workers are based here. Despite union skepticism over Comair's reported losses, Comair flight attendants and Delta pilots ought to do all they can to ensure that the airline survives and returns to profitability. About 800 Delta pilots are based here. Cincinnati/Northern Kentucky International Airport on the other hand ought to be doing all in its powers to reduce its dependence on the Delta/Comair hub.
Erlanger-based Comair is the nation's third-largest regional carrier and operates the most flights out of CVG.
Delta and the airport are almost as interlinked as Delta and Comair's cost-cutting moves. Delta wants another $3 billion in cost cuts and income by 2007, including $325 million a year in new concessions from Delta pilots. Delta wants $8.9 million a year in pay cuts from Comair's 1,100 flight attendants. Concessions from them are doubly critical, because new concessions already negotiated from Comair pilots and mechanics unions don't kick in unless the flight attendants also give up pay. Delta says Comair flight attendants are by far the highest paid in the regional industry, and that Comair's overall costs are 18 percent higher than other carriers in Delta's system. The average Comair flight attendant makes $28,600 a year. Senior attendants top $40,000 a year.
The Teamsters question why Delta reported only a $8.7 million net loss for Comair for the first three quarters of 2005, but now says Comair lost $120 million in 2005. Delta officials say the early figures did not include other costs Delta incurs for Comair flights. Delta's filing in bankruptcy court said it's no longer willing to subsidize Comair.
The same court this week, despite Delta pilots' objections, granted Delta's request to reinstate a $3 million severance program for executives. Delta hopes it will halt recent management resignations, including a senior VP for restructuring.
Meanwhile Delta keeps adding more profitable overseas flights. Delta's spread-the-pain restructuring may be a flight plan to a sounder future, but the airport and others here may need to take evasive action, plus trip insurance.
Delta puts squeeze on Comair
Editorials
Delta Air Lines' restructuring in Chapter 11 bankruptcy is taking more than just Delta employees on a white-knuckle ride.
The airline's filing to void Comair flight attendants' contract risks provoking a second strike to go with one already threatened by Delta pilots. Both could come to a who-blinks-first showdown this spring as the busy travel season heats up. Back-to-back job actions against the No. 3 U.S. air carrier could cripple Delta's restructuring strategy and play havoc with local travelers' plans and airport revenue at the Cincinnati/Northern Kentucky hub.
Delta officials say they'd rather their pilots and flight attendants consent to concessions than be compelled by court cancellation of contracts. One surprising development is that Delta reported Comair lost $120 million in 2005. That news could further narrow Delta's options, if it seeks to downsize by spinning off its regional subsidiary. About 4,000 of Comair's 7,000 workers are based here. Despite union skepticism over Comair's reported losses, Comair flight attendants and Delta pilots ought to do all they can to ensure that the airline survives and returns to profitability. About 800 Delta pilots are based here. Cincinnati/Northern Kentucky International Airport on the other hand ought to be doing all in its powers to reduce its dependence on the Delta/Comair hub.
Erlanger-based Comair is the nation's third-largest regional carrier and operates the most flights out of CVG.
Delta and the airport are almost as interlinked as Delta and Comair's cost-cutting moves. Delta wants another $3 billion in cost cuts and income by 2007, including $325 million a year in new concessions from Delta pilots. Delta wants $8.9 million a year in pay cuts from Comair's 1,100 flight attendants. Concessions from them are doubly critical, because new concessions already negotiated from Comair pilots and mechanics unions don't kick in unless the flight attendants also give up pay. Delta says Comair flight attendants are by far the highest paid in the regional industry, and that Comair's overall costs are 18 percent higher than other carriers in Delta's system. The average Comair flight attendant makes $28,600 a year. Senior attendants top $40,000 a year.
The Teamsters question why Delta reported only a $8.7 million net loss for Comair for the first three quarters of 2005, but now says Comair lost $120 million in 2005. Delta officials say the early figures did not include other costs Delta incurs for Comair flights. Delta's filing in bankruptcy court said it's no longer willing to subsidize Comair.
The same court this week, despite Delta pilots' objections, granted Delta's request to reinstate a $3 million severance program for executives. Delta hopes it will halt recent management resignations, including a senior VP for restructuring.
Meanwhile Delta keeps adding more profitable overseas flights. Delta's spread-the-pain restructuring may be a flight plan to a sounder future, but the airport and others here may need to take evasive action, plus trip insurance.
