From the 10/20/06 Cincinnati Business Courier:

 

Delta gets court OK to cut retiree medical benefits

Cincinnati Business Courier - October 20, 2006

 

Delta Air Lines expects to save $50 million a year in benefits cost savings, now that it has U.S. Bankruptcy Court approval to make cuts in its retirees' medical plan.  The court gave its approval to the plan after a Thursday hearing, according to an Atlanta Journal-Constitution story.

 

Beginning Jan. 1, Delta will charge higher premiums to many of its retirees for its self-insured plan.  Most retirees over age 65 will be dropped from that plan as well, but will be offered an outside plan and receive a monthly subsidy of $50 to $80, according to the story.

 

Full story at http://cincinnati.bizjournals.com/cincinnati/stories/2006/10/16/daily55.html?surround=lfn

 

CVG fares at 11-year high

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

The cost of flying out of Greater Cincinnati/Northern Kentucky International Airport is the highest it’s been in 11 years, according to a government survey released today.  In addition, ticket prices here rose faster in the second quarter of this year than at any other U.S. airport.  Fares soared almost 34 percent compared to the second quarter of 2005, when Delta Air Lines was still tinkering with its lower-priced SimpliFares program before filing for bankruptcy last fall.

 

Dominated by Delta Air Lines’ second-largest hub, CVG has long been criticized for high fares.  Delta, which controls more than 80 percent of local traffic, has defended its pricing saying it helps pay for the high costs of providing direct service to more than 120 destinations, including International service to Europe, Canada, Mexico and the Caribbean.  The average round-trip air fare out of CVG was $536 - the highest nationwide among major airports - during the first quarter of 2006, according to another government report isssued in August.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061025/BIZ01/310250020

Fewer seats, no fare bargains

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

The price of jet fuel is down 12 percent from the same period last year.  Yet the prices of airline tickets are on the way up after years of sluggish demand and market saturation.  With airlines only recently able to make price increases stick, analysts warn not to expect air fares to go down now. Prices will likely keep rising because airlines early this year slashed seating capacity to combat persistent sky-high fuel prices that first took off in 2004.

 

Vijay Bathija, an analyst with consulting firm Sabre Airline Solutions, said high fuel prices for most of this year have delivered a double whammy to the industry.  Airlines finally decided to cut seating capacity.  Then when gasoline prices dropped this fall, consumer demand went up as travelers felt more flush.  He said airlines may add planes to increase capacity, but such decisions take months to implement.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061028/BIZ01/610280343/1076/BIZ

Comair, pilots return to table

Company, union talk on Monday

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair and its pilots union will meet at the negotiating table on Monday and possibly Tuesday for the first time since Oct. 1.  J.C. Lawson, chairman of the union, hoped Comair would make a new concession proposal at the meeting.  The union, representing 1,600 pilots, declined a previous invitation to negotiate earlier this month after the company reiterated its previous offer.  "They owe us a new proposal," he said Friday. "We're hopeful and want a deal."

 

Comair officials confirmed the meeting in Washington, D.C., but declined further comment.  They have stressed the company needs to lower costs to make their airline more competitive in the regional industry.  The company previously lowered its target for pilot concessions to $15.8 million.  The pilots, represented by the Comair chapter of the Air Line Pilots Association, ratified $17.3 million worth of givebacks in January.  But the union demanded new terms after Comair was unable to deliver $8.9 million worth of concessions from the flight attendants.  The pilots made their deal contingent on those concessions.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061028/BIZ01/610280346/1076/BIZ

Comair: Time's running out

Airline might seek voiding of pilots' pact

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair said Monday if it can't win a concession deal from its pilots union by week's end, it will ask a bankruptcy court to reject their contract and impose $15.8 million worth of cost cuts.  Concession talks have stalled since late summer.  Though more negotiations are slated for today in Washington, Comair officials said they have to act now before an 8 percent raise for 1,600 pilots kicks in Jan. 1.

 

The Erlanger-based carrier also says it wants to make the cuts so it can improve its pending bid to keep flying planes and routes for parent Delta Air Lines. Delta will announce next month who won the bidding.  If a motion is filed to reject the contract, a hearing must be held within 21 days.  A decision would be due 30 days after that hearing.

 

Delta, which is also in bankruptcy, has sought bids for 143 aircraft - 93 jets as well as 50 future jets - to help the Atlanta-based airline cut costs.  Comair officials have estimated that about 42 jets could be lost in the bidding process - ultimately shrinking its fleet to about 100, which could force job cuts of 850 pilots and flight attendants.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061031/BIZ01/610310319

Comair may ask permission to void pilots' contract

Cincinnati Business Courier - 9:19 AM EST Tuesday

 

Comair, stalled in negotiations with its pilots union, may ask a U.S. Bankruptcy Court judge to let it force changes to the contract.  The regional airline said Monday that if the two parties can't reach an agreement this week, it will ask the court for authorization to make changes to the current contract.  Talks are scheduled for Tuesday.

 

Comair previously had received the court's permission to void its flight attendants' contract.  It reached a tentative agreement with that union, the International Brotherhood of Teamsters Local 513, in mid-October after it announced it would unilaterally make changes to the contract.  Union members will vote on the agreement Nov. 14.

 

In January, the pilots, represented by the Air Line Pilots Association, approved a new agreement that would have cut $17.3 million in wages and benefits.  But the agreement was contingent on cost savings from other union-represented employee groups, and talks were reopened after Comair began negotiations with the flight attendants.

 

Full story at http://cincinnati.bizjournals.com/cincinnati/stories/2006/10/30/daily15.html

Comair and pilots talking again

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Negotiators for Comair and its pilots union have agreed to continue their concession talks next week.  Both sides said the dialogue would continue even as Comair tries to nullify the pilots' contract.  J.C. Lawson, chairman of the union, said negotiations are scheduled next Wednesday and Thursday and Nov. 14 and 15.  "It's proper to continue negotiations," he said.

 

Comair officials said they also preferred to cut a deal.  "The court process doesn't negate further negotiations and we are open to additional discussions," said spokeswoman Kate Marx.  A day earlier, Comair said that if it can't win concessions from pilots by week's end, it will ask a bankruptcy court to reject the contract and impose $15.8 million of cost cuts.  Once it files the motion, Comair could have a decision by the bankruptcy court within 51 days.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061101/BIZ01/611010319

Comair asks OK to void pact

Pilots union blasts move as 'manipulating' law

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

The head of Comair's pilots union accused the regional airline of "manipulating" the legal system Thursday to wrench $15.8 million worth of givebacks from the 1,600-member group.  The accusation followed the Erlanger-based carrier's Thursday bankruptcy filing, formally requesting that the court authorize the company to reject its pilots contract and impose its last offer of concessions.

 

"We're disappointed Comair is manipulating bankruptcy laws to get a concessions agreement from the pilots," said union chairman J.C. Lawson. "It's overreaching; it's not negotiating a settlement. An agreement is picking a place in the middle and moving toward it. They're not doing that."

 

Though Comair had announced earlier this week it would make the filing, the union leader was decidedly more combative once the company actually filed.  Lawson declined to comment on whether the union might seek a strike authorization from the rank-and-file.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061103/BIZ01/611030343

Delta wins third extension for reorganization plan

Cincinnati Business Courier - 1:40 PM EST Friday

 

Delta Air Lines now has until Feb. 15, 2007 to file its plan to emerge from Chapter 11 bankruptcy.

 

U.S. Bankruptcy Court Judge Adlai Hardin granted a third extension Tuesday to the airline, according to a Friday story in the Atlanta Journal-Constitution. After filing the plan, Delta has until April 16, 2007 to solicit approval from creditors.

 

The Atlanta-based airline filed for bankruptcy in September 2005.

 

Delta (Pink Sheets: DALRQ) operates its second-largest hub from the Cincinnati/Northern Kentucky International Airport.

 

http://cincinnati.bizjournals.com/cincinnati/stories/2006/10/30/daily57.html

Delta's on-time flight percentages down in Q3

Cincinnati Business Courier - 11:05 AM EST Friday

 

Delta Air Lines' on-time percentages decreased in the third quarter, according to the U.S. Department of Transportation's Air Travel Consumer Report published Thursday.

 

The report, which covers the 20 top U.S. airlines, said Atlanta-based Delta's (Pink Sheets: DALRQ) flights were on time 74 percent in the third quarter, compared with 72.3 percent in the third quarter of 2005. The airline ranked 13th among the carriers for on-time flights in the third quarter, compared with a ranking of 15 in the third quarter of 2005.

 

Delta's number of consumer complaints per 100,000 enplanements in September was 0.94, putting it in 13th place. Its number of consumer complaints per 100,000 enplanements in August was 1.33, putting it in 17th place.

 

Delta's mishandled baggage report rate for August was 9.58 per 100,000 passengers for a 15th place ranking. Delta's mishandled baggage report rate for August was 9 per 100,000 passengers for a 13th place ranking.

 

Delta (Pink Sheets: DALRQ) operates its second-largest hub from the Cincinnati/Northern Kentucky International Airport.

 

http://cincinnati.bizjournals.com/cincinnati/stories/2006/10/30/daily53.html

From the 11/9/06 Dayton Business Journal:

 

Delta to recall flight attendants

Dayton Business Journal - 1:48 PM EST Thursday

 

Delta Air Lines Inc. will bring back 1,000 more furloughed flight attendants in 2007.  The bankrupt Atlanta airline said its latest recall will start in January with up to 500 previously furloughed flight attendants set for training in early 2007.  In September, Delta recalled more than 200 flight attendants. 

 

It has brought back 130 pilots this year to date, continues to bring back maintenance workers and is hiring in its Airport Customer Service and Reservation divisions.  Delta has added or announced more than 70 new international routes since fall 2005, with many of the routes beginning later this year and during 2007.  Delta said its is on track to emerge from Chapter 11 during the first half of 2007.

 

Delta is largest carrier flying out of Dayton International Airport.

 

Full story at http://dayton.bizjournals.com/dayton/stories/2006/11/06/daily14.html?surround=lfn

 

From the AP, 11/10/06:

 

Delta logs $52 million profit

Associated Press

 

ATLANTA - It took a restructuring of the books to do it, but Delta Air Lines actually made a profit last quarter - Delta's first net profit since it entered bankruptcy in September 2005.  In addition, the company also said Thursday that it would recall 1,000 flight attendants next year to help in part with its international expansion.

 

Delta Air Lines Inc., the nation's third-largest carrier, said it swung to a $52 million profit in the third quarter thanks in part to a one-time gain due to a decrease in previously estimated pre-bankruptcy claims for restructuring of aircraft financing deals.

 

The Atlanta-based company, which is operating under bankruptcy protection, said the profit for the three months ended Sept. 30 amounted to 22 cents a share, compared to a loss of $1.13 billion, or $6.73 a share, for the same period a year ago. Excluding reorganization items, Delta said it lost $46 million in the quarter.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20061110/NEWS01/611100345

 

From the 11/11/06 Enquirer:

 

Comair pilots union talks strike

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

The head of Comair's pilots union said Friday it was preparing for the possibility of a strike as concession talks sputtered this week with the bankrupt regional airline.  J.C. Lawson, the head of the union, described Comair as inflexible during two days of negotiations that wrapped up Friday, and for the first time he broached the possibility of a strike.  "Our first choice is a consensual deal and not to strike this airline, but we're pursuing strike preparations," he said, declining to elaborate.

 

Officials with Comair, which is seeking to cut salaries to lower its costs and get it out of bankruptcy, said a strike would be illegal under the Railway Labor Act that governs airlines.  They said they were bargaining in good faith with the pilots.  Both sides are due back at the bargaining table on Tuesday and Wednesday.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061111/BIZ01/611110335/1076/BIZ

 

I guess the lawyers found out there was a profit and wanted half of it!

 

Lawyers ask for $24M more in Delta reorganization

Cincinnati Business Courier - 2:32 PM EST Monday

 

The lawyers guiding Delta Air Lines through its Chapter 11 bankruptcy reorganization have asked the court for another $24.3 million in fees and expenses, according to an Associated Press story.  The U.S. Bankruptcy Court scheduled a hearing on the request for Dec. 13.

 

The lawyers, who represent 20 different law firms, have received compensation totaling almost $100 million so far, according to the AP.  The latest request covers about four months of work.  Davis, Polk and Wardwell, the lead firm in the bankruptcy case, made the largest request, for about $7.7 million, the AP said.

 

Delta said it hopes to emerge from bankruptcy in 2007.  The airline, which operates its second-largest hub from the Cincinnati/Northern Kentucky International Airport, declared bankruptcy in September 2005.

 

Full story at http://cincinnati.bizjournals.com/cincinnati/stories/2006/11/13/daily9.html

US Airways bids for Delta

THE ASSOCIATED PRESS

 

TEMPE, Ariz. – US Airways Group Inc. said this morning it has made an $8 billion cash and stock offer for Delta Air Lines Inc. in a deal that would create one of the world’s largest airlines.  The offer to buy Delta once the Atlanta-based airline emerges from bankruptcy protection would give Delta’s unsecured creditors $4 billion in cash and 78.5 million shares of US Airways stock.

 

US Airways said the offer is a 25 percent premium over the current trading price of Delta’s pre-petition unsecured claims as of Tuesday, and a 40 percent premium over the average trading price for Delta unsecured claims over the last 30 days.  If the deal is completed, the airline would operate under the Delta name and serve more than 350 destinations across five continents.

 

Delta spokeswoman Thonnia Lee seemed surprised by the announcement this morning and said she could not yet comment on it in detail.  But she said Delta has consistently said that it plans “to emerge from bankruptcy as an independent airline.”

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061115/BIZ01/311150009

Comair attendants accept cuts

Concessions improve odds of labor peace for holidays

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair's flight attendants have ratified a new contract that gives the bankrupt regional airline $7.9 million worth of concessions and its passengers some assurance they'll get where they're going over the holidays.  The vote announced Tuesday assured Comair of lower costs and labor peace with the flight attendants, although a contract settlement with pilots - and the possibility that that union will strike - remain in question.

 

The flight attendant vote brings a year of labor strife between the company and the union to an end.  Flight attendants will accept a 7.5 percent pay cut, while Erlanger-based Comair will achieve savings meant to help lift it out of Chapter 11 bankruptcy reorganization.

 

Connie Slayback, president of the International Brotherhood of Teamsters Local 513, said the vote preserved industry-leading pay for the 1,000 flight attendants and settled their fight.  "It's good in that it brings us to a close," she said, adding the concessions were significantly lower than the 25 percent pay cuts initially sought by Comair.  The average Comair flight attendant now makes a salary of $29,950 per year, according to Comair.  That will be cut by $2,250 by the end of the year, reducing average pay to $27,700.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061115/BIZ01/611150324

Holy shit!

more on this story

 

http://money.cnn.com/2006/11/15/news/companies/us_airways_delta/index.htm?postversion=2006111512

this is "hostile" and the analyst don't see this working out or even getting to the DOJ.  Although, stranger things have happened.

 

CMH & AmrapinVA, what are your thoughts?

If (Big If) this merger went through I would guess the following would happen:

 

Charlotte: Huge reduction in flights, no longer hub.

Atlanta: Super Hub, addition of Charlotte flights.

Salt Lake City: Huge reduction in flights, no longer hub.

Phoenix: Hub of West Coast, addition of SLC flights.

Cincinnati: (1) Reduction of flights, shifted to Pittsburgh/Atlanta or (2) Slight Expansion with additional Pittsburgh flights.

Pittsburgh: (1) Reduction of flights, shifted to Cincinnati or (2) Slight Expansion with additional Cincinnati flights.

New York (JFK): Additional International flights.

Philadelphia: Reduction in number of flights.

If (Big If) this merger went through I would guess the following would happen:

 

Charlotte: Huge reduction in flights, no longer hub.

Atlanta: Super Hub, addition of Charlotte flights.

Salt Lake City: Huge reduction in flights, no longer hub.

Phoenix: Hub of West Coast, addition of SLC flights.

Cincinnati: (1) Reduction of flights, shifted to Pittsburgh/Atlanta or (2) Slight Expansion with additional Pittsburgh flights.

Pittsburgh: (1) Reduction of flights, shifted to Cincinnati or (2) Slight Expansion with additional Cincinnati flights.

New York (JFK): Additional International flights.

Philadelphia: Reduction in number of flights.

 

Yeah, its a BIG IF!

 

What about the McCarran hub?

 

Your options are interesting, I would see them keeping Philly, as JFK is stupid as a hub to begin with and will cost an arm and a leg; Cinci, Char & SLC reduced; ATL & Phx, staying the same, as ATL is already a nightmare; then beefing up Vegas, with flights from CVG, CLT & SLC.  I think in some of the USAir focus cities like LAX, BOS, MCO, FLL & DCA (slot controlled) we could see a further reduction of service as many east coast routes/times overlap.  Small cities would suffer the most.

 

I think the buildup at JFK will kill the airline along with the over emphasis that ATL is really hub.  IIRC, something like 60-65% of the passengers are connecting, they can't be making money.  Also, Philly is a true Hub already built up for international capacity, why reinvent the wheel?

 

Also, I would guess, one of the shuttles would have to be sold, enter AirTran or we have the return of ContinentalLite (IIR, Continental owns the USAir Terminal at LGA).

 

I think this is all a ploy to boost stock in the short term and put USAir in the paper right before the holidays as a Healthy strong company capable of taking over the weak sheep in the heard.  Most people aren't fooled by this "stunt".

 

I'm far from being an analyst, but I do smell blood in the water - but who's blood is the question.

 

Lastly...this is the airline industry and stranger things have happened

I wonder if the Government would approve this after all the money they spent to keep these airlines afloat.

Didn't US Air chairman in  the Money article say that Charlotte and Salt Lake will remain as will Atlanta along with the other existing USAIR hubs?

 

Kinda seems like they already know where the cuts are going to come from if this goes through and it looks like it will be in cinci.

 

It just seems that this deal makes little sense for USAir anyway. They are going to take on a lot of debt to do this deal and if the economy turns south again, they may find themselves in bankrtuptcy from this, that will not be good for anyone.

Wasn't US Airways in the crapper until very recently?  I remember hearing about Pittsburgh's large brand new airport coming on line, then US Airways basically leaving it empty, is this not the case?  If so, did some corporate raider come in with a cash infusion and shore them up?

They were in bankruptcy a few years ago and then were acquired by America West. America West took the name US Airways, so this USAir is actually America West, who was never the strongest airline to begin with either.

They were in bankruptcy a few years ago and then were acquired by America West. America West took the name US Airways, so this USAir is actually America West, who was never the strongest airline to begin with either.

 

America West wasn't a bad airline, they just didn't have an extensive route structure, especially on the East Coast.

 

USAir and AW hooking up actually makes sense. USAir established on the East Coast, AW established strong in the SW.

 

Just recently Airtran and Frontier have started a marketing partnership.  IIRC it's similar to the original continental/northwest partnership.  smart move!

I never said AW was a bad airline, just that it never had the strongest financial footing, evidenced by its own bankruptcy filing in the 1990s

I think this is a bit of a pipe dream by the US Scare folks. US Air and United wanted to merge just before September 11th and the DOJ had them running through so many hoops that both parties called the deal off. The only reason I could see the US govt. letting this one slide is because there may be too much competition in their eyes. If they do merge....the new Delta will have to close some hubs...guaranteed. Which ones? That's really too tough to call until the DOJ approves the merger and we get an idea of their new business plan.

Bid puts CVG in limbo

Analysts disagree on fate if deal struck

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Aviation experts are divided on whether Delta Air Lines' hub at Cincinnati/Northern Kentucky International Airport would survive if US Airways were to win its quest to take over Delta.  At stake are thousands of jobs, potentially billions of dollars in economic impact and a range of direct flights and flights to a wide variety of national and international destinations.

 

Several analysts speculated that Delta's hub at CVG would miss the ax should US Airways succeed in its $8 billion takeover attempt and decide to curtail service at some hubs.  Though US Airways insists that it will continue to operate all eight of the two companies' combined hubs, most analysts are skeptical that it can keep so many.

 

Doug Abbey, a partner at consulting firm Velocity Group, speculated that CVG would be at least initially sheltered from service cutbacks under a merger.  He said consolidation was more likely in reconciling the Charlotte, N.C., hub with Atlanta; the Philadelphia hub with JFK in New York; and the Salt Lake City hub with Phoenix and Las Vegas.  "The biggest risk to Cincinnati is Pittsburgh, and that is already off the table," he said, noting that US Airways largely disassembled its hub in western Pennsylvania after its merger with America West.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061117/BIZ01/611170356/1076/BIZ

Comair pilots to vote on strike

Union wants OK if company imposes cuts

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

After months of fruitless negotiations, leaders of the Comair pilots union decided Thursday to ask members for the power to call a strike in the near future.  J.C. Lawson, the chairman of the union, said the 1,600 members would begin a strike authorization vote in the next couple of weeks.  The possible timing of a strike is unclear, though it wouldn't come before mid-December at the earliest.

 

That means uncertainty for those holding tickets on Delta flights operated by Comair during the busy Christmas travel season.  The pilots' strike of 2001 significantly cut back the number of flights going out of Cincinnati/Northern Kentucky International Airport.  The pilots' announcement comes after a week of mounting tensions between the union and the Erlanger-based regional carrier, which wants givebacks from the pilots to lift it out of bankruptcy.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061117/BIZ01/611170355/1002/COL02

240 Comair jobs at risk

By Greg Paeth

Post staff reporter

JASON GEIL/The Post

 

Comair pilots had an informational picket line Tuesday at the Cincinnati/Northern Kentucky International Airport.  As many as 240 Comair jobs could be at risk with Delta Air Lines' decision to award some of its flying business to another airline.  Delta officials have told Erlanger, Ky.-based Comair that it will lose a dozen of its 70-seat aircraft next year.

 

Delta, Comair's parent company, said that beginning in February the flying will be handled by SkyWest, which already provides service on more than half of the 2,500 regularly scheduled "Delta Connection" flights.  The announcement from Delta came Tuesday, the same day Comair pilots started informational picketing in front of the Delta hub at the Cincinnati/Northern Kentucky International Airport.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20061122/NEWS01/611220362

Comair: We need new cuts

Pilots begin voting on permission to strike

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

NEW YORK - Top executives from Comair and Delta Air Lines said Monday that the regional airline still needs substantial cuts in pilot costs, despite projections that Comair will turn a $50 million profit this year.  Officials testified Monday at a U.S. Bankruptcy Court hearing on Comair's motion to nullify a contract with its 1,600-member pilots union and impose $15.8 million in cuts.

 

Meanwhile, the union said its members were voting on whether to authorize a strike against the Erlanger-based carrier and that the votes would be counted by Dec. 11.  If a strike or other work action is authorized, it wouldn't occur unless Comair nullifies the contract and imposes terms.

 

The union lost one round Monday in the hearing, which is expected to last all week, when Judge Adlai Hardin quashed subpoenas by the Comair pilots seeking documents related to a hostile takeover bid for parent Delta and testimony from chief executive Arnold Grinstein.  Hardin, who also is presiding in Delta's bankruptcy, didn't see how the unsolicited $8.9 billion bid made by US Airways for Delta Nov. 15 could be factored into Comair's motion to nullify the pilots contract.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061128/BIZ01/611280350

US Airways to pitch Delta an offer

Company, creditors to hear offer

BY HARRY R. WEBER | THE ASSOCIATED PRESS

November 29, 2006

 

ATLANTA - US Airways Group Inc. will pitch its $8.6 billion unsolicited offer for Delta Air Lines Inc. in a meeting this week with Delta and the committee representing the unsecured creditors in Delta's bankruptcy case, a lawyer for the committee said Tuesday. 

 

The lawyer, Daniel Golden, said in a telephone interview that the committee's advisers will be present at the meeting in New York, along with US Airways officials and Delta senior executives.  Neither Golden nor spokesmen for Atlanta-based Delta and Tempe, Ariz.-based US Airways would say when the meeting will take place.

 

Golden said the creditors committee will go into the meeting with an open mind, even as Delta has said it opposes a merger and hopes to emerge from bankruptcy next year as a standalone company.  The head of Delta's pilots union has expressed support for Delta's plan.  The union is a member of the creditors committee.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061129/BIZ/611290331/1076

Delta's pursuer still digesting its last prey

BY DAWN GILBERTSON | GANNETT NEWS SERVICE

November 30, 2006

 

ATLANTA - A couple of days after US Airways sprang its takeover bid on Delta Air Lines, Ron Budnick tried to book a flight to Charlotte, N.C., on US Airways' Web site.  The Sedona, Ariz., frequent flier was just back from a US Airways flight to London and needed to buy tickets to visit family for Christmas.  He hit the purchase button and waited, but nothing happened.  Twice.

 

Budnick tried again early the next morning.  Same result.  He ended up buying two tickets over the phone, and paid nearly $80 more because the fares had risen.  The retired finance executive presents his latest experience as Exhibit No. 1 in why US Airways is not yet ready for another merger.  "They're not even close" to working the kinks out of the America West/US Airways merger, Budnick said. "There's a ton of work to do."

 

That has been a common refrain - from frequent fliers, union employees and others - since US Airways CEO Doug Parker surprised Delta CEO Gerald Grinstein with an $8 billion takeover offer on Nov. 15.  Delta strenuously opposes the deal, which would create the nation's largest airline.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061130/BIZ01/611300322/1076/BIZ

From the 11/22/06 Enquirer:

 

Delta taking jets from Comair

Shift to SkyWest service could cost 264 jobs

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

ERLANGER - In a cost-cutting move, bankrupt Delta Air Lines said Tuesday it would reassign 12 Comair jets to another regional carrier by February.  It was the first of several awards expected by year's end from a bidding process this fall.  The announcement means the potential elimination of jobs for an estimated 264 pilots and flight attendants - a figure Comair officials would not confirm.  The locally based regional airline said it would attempt to manage the job cuts through attrition rather than layoffs.

 

Comair officials have confirmed that 70-seat jets operated by Comair typically employ 11 pilots and 11 flight attendants apiece.  Delta officials said St. George, Utah-based SkyWest Inc. would take over operation of the dozen 70-seat CRJ700s early next year that fly dozens of flights out of Cincinnati/Northern Kentucky International Airport in Hebron. Passenger service would not be changed.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061122/BIZ01/611220345

 

From the 11/29/06 Enquirer:

 

Pilots' lawyers grill execs

In court, Comair, Delta insist on need to cut

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

NEW YORK - Lawyers for Comair's pilots grilled executives for the regional airline and its parent company Delta Air Lines Tuesday about the Erlanger-based carrier's financial condition - and its need for concessions now from the union.  The testimony was part of a U.S. Bankruptcy Court hearing on Comair's motion to nullify a contract with the 1,600-member union and impose $15.8 million in wage and other cuts.

 

Shawn Anderson, Delta's senior vice president of supply chain management, affirmed that Comair was projecting a $50 million profit this year but said its cost-cutting efforts fell short of Delta's expectations.  Comair lost $120 million in 2005, according to Delta. 

 

Last January, pilots approved $17.3 million in cuts over four years.  But that was contingent on Comair reaching set concessions from flight attendants and mechanics.  The flight attendants subsequently agreed to cut annual costs by $7.9 million, $1 million lower than required under the pilots' deal.  That forced Comair to renegotiate with pilots.  The parties are in court because they haven't reached a new deal.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061129/BIZ01/611290340/1076/BIZ

 

From the AP, 11/30/06:

 

Comair pilots' union testifies in court

BY VINNEE TONG | THE ASSOCIATED PRESS

 

NEW YORK - The union representing Comair pilots testified Wednesday that pilots narrowly ratified a January agreement that contained terms more favorable to the company than those in the proposal now before a bankruptcy court.  The Air Line Pilots Association opened its defense against rejection of its labor contract, part of the company's effort to emerge from bankruptcy protection alongside its parent Delta Air Lines Inc.

 

Cory Tennen, the lead labor negotiator for ALPA, testified that pilots narrowly approved a January agreement for $17.3 million in annual concessions under threat from Erlanger-based Comair that Delta would shut it down.  "Company negotiators repeatedly stated that if they did not get the $17.3 million, the company would simply shut down," said Tennen, a captain who flies 70-seat aircraft for Comair.

 

He said the threat of closure convinced ALPA it should allow the 1,500 Comair pilots to vote on the concessions deal, which was approved by a small margin.  The January agreement was negotiated in November and December of last year.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061130/BIZ01/611300326/1076/BIZ

 

Both from the 12/1/06 Enquirer:

 

Comair, pilots to restart talks

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair and its pilots union will return to the bargaining table Monday after a bankruptcy judge urged both sides continue negotiations. The talks will be the first since Nov. 16.  Judge Adlai Hardin’s comments came after four days of hearings on Comair’s request to reject its contract with the pilots and impose $15.8 million worth of concessions. Comair is trying to emerge from bankruptcy with lower costs that it says will boost its ability to attract new business.

 

Hardin’s ruling may take longer than a week. Meanwhile, the union is holding a vote to authorize a potential strike with results due Dec. 11.  Both sides say they’ve wanted to cut a deal all along even though differences on the level of givebacks remain.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061201/BIZ01/612010333/1076/BIZ

 

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Delta reports Oct. losses down 70.8%

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Bankrupt Delta Air Lines reported Thursday that its losses for October dropped 70.8 percent to $88 million from $301 million a year ago.  The Atlanta-based carrier, dominant operator out of Cincinnati/Northern Kentucky International Airport, said its operating loss was down 95.4 percent to $9 million and its loss before bankruptcy costs was down 67.3 percent to $64 million.

 

The company said it has $3.8 billion in cash, equivalents and short-term investments on hand, including $2.7 billion that is unrestricted.  Delta said its revenue for the month was $1.4 billion but did not release a year-ago figure.

 

More at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061201/BIZ01/612010332/1076/BIZ

 

From the 12/2/06 Enquirer:

 

Judge urges Comair talks

Pilots, company seek deal on cuts

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair and its pilots union will return to the bargaining table Monday after a bankruptcy judge urged both sides to continue negotiations.  Judge Adlai Hardin's comments came after four days of hearings on Comair's request to reject its contract with the pilots and impose $15.8 million worth of concessions.  Comair is trying to emerge from bankruptcy with lower costs that it says will boost its ability to attract new business.

 

Hardin may take longer than a week to rule.  Meanwhile, the union is holding a vote to authorize a potential strike with results due Dec. 11.  Both sides say they've wanted to cut a deal all along even though differences on the level of givebacks remain.  J.C. Lawson, chairman of the 1,600-member pilots union, said they still seek a deal.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061202/BIZ01/612020337/1076/BIZ

 

From the AP, 12/5/06:

 

Delta, government reach agreement

Agency to terminate pilot pensions

THE ASSOCIATED PRESS

 

Delta Air Lines Inc. and the Pension Benefit Guaranty Corp. have reached a settlement involving the carrier's request to terminate its pilots pension plan that will award the government's pension insurer an unsecured claim of $2.2 billion.  The Atlanta-based company said in a Bankruptcy Court filing Monday that the agreement also calls for Delta's reorganization plan to provide the pension agency with $225 million in senior unsecured notes. Delta retains the right to replace the notes with cash.  The agreement calls for the agency to complete the termination of the pilots pension plan expeditiously and, if it makes a final determination to terminate the plan as recommended by staff, the termination will be retroactive to Sept. 2.

 

The nation's No. 3 carrier operates its second largest hub at Cincinnati/Northern Kentucky International Airport and has about 6,000 active pilots (including about 700 based at CVG). Delta has already received court approval to terminate the pension, but it also needs the agency's nod.  Delta has said it needs to eliminate its pilots pension to successfully emerge from Chapter 11, which it hopes to do by the middle of next year.

 

A hearing on the agreement between Delta and the agency is scheduled for Dec. 20 in U.S. Bankruptcy Court in New York.

 

More at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061205/BIZ/612050386/1076/BIZ

 

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From the 12/5/06 Enquirer:

 

Showdown looms for Comair

Union strike-vote tally, court filings due Monday

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Bankrupt Comair and its pilots concluded negotiations Monday, agreeing only to meet again on the same day the union could announce that its members have authorized a strike.  Concession talks will resume Monday and Tuesday as well as Dec. 27, 28 and 29.  The pilots will tally the results of the strike vote Monday.  In addition, final written arguments for Comair's bid to scrap its pilots contract are due Monday, so a judge's decision could come anytime between then and Dec. 27.

 

Aviation experts say Comair likely will face a showdown with the pilots this month.  By scheduling talks late into the month, the experts said, each side is using the looming deadlines to maximize pressure on the other - and guaranteeing a white-knuckle ride for all parties.  Tension has built since the Erlanger-based company asked a bankruptcy court in New York last month to allow it to throw out its pilots contract and impose $15.8 million worth of givebacks.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061205/BIZ01/612050353/1076/BIZ

 

From the 12/11/06 Enquirer:

 

Comair pilots OK idea of strike

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

ERLANGER - Comair’s pilots have overwhelmingly voted in favor of giving their leadership the go-ahead to call a strike if ongoing talks with the bankrupt carrier don’t result in a new contract.  A potential strike was authorized by 93.2 percent of the vote, the union said tonight.

 

While the results don’t portend an immediate strike, the union is prepared for a potential confrontation with the airline, which is seeking to cut pilot pay to lower costs and get it out of bankruptcy.  Officials did not disclose how many of Comair’s 1,600 pilots participated in the ballot.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061211/BIZ01/612110317/1076/BIZ

 

Delta eyes reorganization plan

CINCINNATI ENQUIRER

December 18, 2006

 

CINCINNATI - Delta Air Lines Inc., working to beat back an $8.4 billion merger bid from US Airways Group Inc., may file by Tuesday a sweeping bankruptcy reorganization plan, The Wall Street Journal reported on its Web site today.  Citing unnamed sources, the Journal said the value of the company under the reorganization plan was $10 billion to $12 billion. 

 

That range, representing the Atlanta airline's estimated market value after emerging from bankruptcy, is down from the $12 billion to $14 billion range that the airline caculated earlier this year.  Delta is restructuring under Chapter 11 bankruptcy protection. US Airways in November proposed a deal to buy Delta, which the airline is fighting in an effort to emerge next year as a stand-alone entity.

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061218/BIZ01/312180011/1076/BIZ

Delta: We'll fly solo

BY HARRY R. WEBER | THE ASSOCIATED PRESS

December 19, 2006

 

ATLANTA – Delta Air Lines Inc. filed a reorganization plan with the bankruptcy court today that calls for it to emerge from Chapter 11 in the spring of 2007 as a standalone company.  The plan is in opposition to an offer by US Airways Group Inc. to buy Delta in a hostile bid now worth $8.4 billion.  The Atlanta-based carrier outlined a five-year business plan, and said that its advisers have determined that a reorganized Delta will have a consolidated equity value of roughly $9.4 billion to $12 billion.   

 

Delta also said Tuesday that its board has unanimously rejected US Airways’ unsolicited offer, which was first disclosed Nov. 15.  There was no immediate comment by Tempe, Ariz.-based US Airways, but an official with knowledge of that company’s plans who spoke on condition of anonymity because of the sensitivity of the talks said Monday that US Airways was willing to increase its offer for Delta if Delta could justify it is worth more.

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061219/BIZ01/312190005

^ Glad to hear it.  I am not a fan of US Air and Delta has been fantastic to me during my business travel.  I still say they are one of the best airlines when cost isn't a concern.  On personal travel out of Cincinnati my feelings for them changes for the worse because of their monopolistic costs.

 

I am planning my 2 week business trip from Cincinnati to Frankfurt, Germany as I type this.  It is great that I fly there non-stop from the Midwest.

^^ I saw this on the news this morning. Good news. Consolidation is still a posibility though...I wouldn't be surprised now if CAL tells UAL to get lost and UAL makes a run at DAL.

 

As for flying non-stop to Germany from the Midwest...it's not all that rare. Detroit, Minneapolis, Chicago and Denver all have non-stop service. St. Louis had it before AMR swallowed up TWA as well.

US Airways won't raise Delta bid

Not backing out either

BY HARRY R. WEBER | THE ASSOCIATED PRESS

December 29, 2006

 

ATLANTA - US Airways has no intention right now to increase its $8.4 billion offer for Delta Air Lines, and it can't see itself backing out of its pursuit of Delta for any reason, chief executive Doug Parker said Thursday.  In a wide-ranging telephone interview, Parker said Tempe, Ariz.-based US Airways Group Inc. firmly believes that its offer for Atlanta-based Delta Air Lines Inc. provides more value than Delta's stand-alone plan.

 

At the same time, Parker did not exactly rule out the possibility of changing his mind about the offer price.  Asked if there is any way US Airways would drop its hostile bid for Delta absent Delta's creditors' committee saying it wasn't interested, Parker indicated that he didn't see any.

 

Delta issued a statement Thursday similar to one it issued Dec. 21.  It said it is moving forward with its stand-alone reorganization plan because it thinks that its plan provides creditors with "superior value as well as a faster recovery and much greater certainty of execution" than any competing proposal.  Delta said nothing Parker has said recently changes that belief.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061229/BIZ01/612290334/1076/BIZ

US Airways ups bid for Delta

THE ASSOCIATED PRESS

January 10, 2007

 

ATLANTA – US Airways Group Inc. raised its offer for Delta Air Lines Inc. by 20 percent to $10.2 billion today, as it seeks to put pressure on the bankrupt carrier’s creditors to agree to a deal that Delta’s management opposes.  US Airways said it would raise its offer by $1.7 billion from its Nov. 15 bid that was currently valued at $8.5 billion.

 

The increased offer comes just two weeks after the chief of Tempe, Ariz.-based US Airways, Doug Parker, told The Associated Press that his company had no intention at the time to increase its offer.  Even so, Parker did not exactly rule out the possibility of changing his mind about the price.  In a statement today, Parker said US Airways was raising its bid to remove any doubt that its bid was worth more than Delta’s plan to remain a standalone carrier.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070110/BIZ01/301100008

US Airways bid may aid CVG

Takeover would increase local Delta traffic

BY ALEXANDER COOLIDGE | [email protected]

January 11, 2007

 

CINCINNATI - Traffic would increase slightly at Cincinnati/Northern Kentucky International Airport if US Airways is successful in its hostile takeover bid of Delta Air Lines, the airline's No. 2 executive said Wednesday.  In an interview with The Enquirer, Scott Kirby, president of the Tempe, Ariz.-based carrier, acknowledged the airline would slash connecting traffic at several hubs.  But Kirby said the Cincinnati airport is already smaller because of Delta's downsizing through its bankruptcy.

 

Kirby's comments came hours after US Airways upped the ante in its bid for Delta, increasing its offer to $10.4 billion in cash and stock, up from $8.7 billion.  The company said it needs a sign of creditor support by Feb. 1.  "Cincinnati is one place we'd increase capacity - Delta has already right-sized the hub," he said, adding that traffic at the Hebron airport would remain "basically flat," in the short term following consummation of the merger.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070111/BIZ01/701110359/1076/BIZ

From the 12/13/06 Enquirer:

 

Comair talks again fail to produce deal

Bankruptcy judge might throw out current contract

BY ALEXANDER COOLIDGE | [email protected]

 

A judge may have to act before Comair and its pilots union agree on concessions to get the Erlanger-based regional airline out of bankruptcy.  Negotiations between the two sides ended on Tuesday without a deal.  The company and pilots are next scheduled to talk Dec. 27-29.

 

Meanwhile, U.S. Bankruptcy Court Judge Adlai Hardin must decide by Dec. 27 whether to allow Comair to throw out its pilot contract and impose $15.8 million worth of concessions.  J.C. Lawson, chairman of the union, said Comair appears to be holding back in negotiations awaiting the judge's decision that could come any day.  "We want to negotiate - they want to litigate," he said. "There is no deal. We tried to close the gap, but management doesn't appear ready to make a deal."

 

The 1,600-member pilots union turned up the heat on Comair on Monday when its members authorized a strike if a deal proves unreachable.  A strike won't take place until at least two things happen first: the judge must allow the airline to nullify the contract; then Comair would have to impose the cuts.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061213/BIZ01/612130342

 

From the 12/19/06 Cincinnati Post:

 

Airport vendors getting a break

By Kerry Duke

Post staff reporter

 

Concessionaires at the Cincinnati/Northern Kentucky International Airport will get a break from their landlord to help ease the hit in sales they've endured this year due largely to cutbacks in service by Delta Air Lines.  The Kenton County Airport Board voted Monday to approve a two-year extension of the contracts for all the food, beverage, retail and service concessions operating at the airport this year.  The board also authorized Bob Holscher, the airport's chief executive officer, to reduce or eliminate the minimum payments concessionaires make to the airport on a case-by-case basis after a review of their books. 

 

"It was recommended that we look at extending their agreements for two additional years," Paul Hegedus, the airport's commercial and business development manager, told board members before they vote.  Hegedus said overall sales among all concessionaires at the airport were down 24.5 percent through November from the same period a year earlier.  In Delta's Concourse B in Terminal 3, sales have declined 32 percent over the same period, he said.  For all of Terminal 3, the dip was 19.93 percent.  For concession businesses operating in Terminal 1, sales were down 4.96 percent.  Only Terminal 2 concessionaires saw sales increase - a 12.92 percent boost.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20061219/NEWS01/612190381