flycrj200

Skywatch
You make a good point, but you are forgetting the fact that any profit Comair makes ($109 Million last year) goes to the bottom line of Delta. That in itself makes Comair a more profitable option than contract carriers even though the cost per block hour is a little higher at Comair. Please check your facts before you call someone else’s facts inaccurate.

Boomer

To be realistic, we would be looking at paying your own kid $11 and taking $1 back as rent (net loss $10), versus paying the neighbor kid $9.98.

Lighteningspeed

After the pay raise in December of this year, Mesaba will be second most expensive next the Comair. Comair will still be the most expensive and then Mesaba second. Compass is one of the cheapest, in fact cheaper than SkyWest or ASA. What this means to the future of Comair, Mesaba or Compass, I do not know.

BlueMoon

Unfortunately as Mesaba parks Saab's they will begin to have higher longevity FO's on par with Comair's longevity.

Lighteningspeed

This is true to some extent, but most junior Comair FO is still more senior than most junior Mesaba FOs. Most people agree that all Saabs will be parked in the next couple of years, which means more junior FOs will be furloughed at Mesaba.

It is pathetic that DAL awards cheapest regionals and thrashes regionals that pays better rates and better work rules.

H46Bubba

Benodo conference call is about to begin! Should be fun.

On Autopilot

Tell us what he had to say. Should be..............interesting.

teamdothis

So any news worth sharing yet?

skywatch

My facts are spot on. Your premise is fatally flawed.

the only reason Comair shows a "profit" is because all of the arrangements for regional lift, both wholly owned and not wholly owned, are what is called cost plus - As long as performance targets are hit, Comair will make cost plus 2% or 4% or 10% or whatever...as long as targets are hit, Comair (and any other regional) cannot lose money - they will always show a "profit" on their books. The difference is, Delta may not be able to cover the "cost +" with the revenue from the tickets. So Delta's goal is to find the CHEAPEST guy to do the flying.

If the deal is cost + 10%, for example, and it costs Comair $1000 to fly the flight, then Delta pays them $1100. If Delta can only make $900 on the tickets though, in the end Delta lost $200 operating the flight - but Comair will show a "profit" of $100. Net loss to the Delta Corporate familiy - $100 (Comair +100, Delta loss -200).

Now take the same scenario but lets assume it is Compass and they can fly the flight for $800. Delta will pay them the same cost + 10%, or $880 to fly the flight. If Delta collects the same $900 for tickets, then Delta makes $20 on the flight and Compass collects $80 of "profit". Net gain to the Delta Corporate family - $20 (Delta +$20)

There is nothing inaccurate about my facts - this is the way it works, so like any business owner Delta really does not care if it is done in house or outsourced, as long as it is profitable.

Does that make sense? That is why the real goal is to find whoever can do it the cheapest.

H46Bubba

Well it wasn't as interesting as the Vag's conference calls..I can tell you that for a fact! Lets see.

- Flew 76,338 fewer block hours in 2009 than in 2008(20%)!
- Flew 2,867 more block hours this year than planned.
- Block hours planned for 2010, 16% less than 2009.
- 18% flying to transfer back to CVG over next six months.
- By July '10; percentage of "planned" flying will be: 42%/NE,
39%/CVG, 14%/DTW, 5%/Other.
- No MSP or ATL based flying planned for 2010
- 15 Lease returns for 2010 and 6 for 2011.
- Total projected fleet by end of 2011: 13/CR9, 15/CR7, 87/CRJ
- Down to 2,730 employees after latest furlogh and voluntary
reductions.
- Changing e-mail over from Groupwise to MS Outlook
- Comair not going anywhere or disappering as posted in Cincy
Enquirer
- Smaller Airline now focused solely on flying
- Continue to reduce costs more comaprable to peers
- Continue to do more with less.
- Leverage mainline resources and find synergies(yes they used the
DL magic word) with sister wholly owned.
- No growth..but aligning cost for future growth (as always!).
- All a/c will be painted in Gen 4 by Sep. 2010.
- Mx launched a/c interior improvement plan: Extensive and more
frequent interior cleaning.
- Increased frequency of exterior a/c washes

And last but not least; we were 15% more expensive than the other bidders for the UA RFP.