From the 7/19/06 Enquirer:

 

Comair, attendants talk again

Court could rule again on canceling contract

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair and its flight attendants are headed back to the bargaining table next week as a bankruptcy judge weighs whether to invalidate the union's labor contract.  Both sides' final arguments were due by Tuesday on Comair's second attempt to void the contract following hearings last week.  Still, both sides insist they are willing to cut a deal to resolve the dispute and get on with the airline's restructuring.

 

Negotiators for Comair and the International Brotherhood of Teamsters Local 513, which represents the 1,000 flight attendants, are slated to meet in Washington, D.C., Monday through Wednesday.  Connie Slayback, president of the union, said both sides are closer to a deal than they were on April 26 when Judge Adlai Hardin refused to nullify the union's contract because of what he ruled was the regional airline's inflexibility in negotiations.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060719/BIZ01/607190332/1076/rss01

 

From the 7/22/06 Enquirer:

 

Comair gets OK to void contract

Attendants union will discuss concessions again next week

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair gained new leverage Friday in its battle with its flight attendants union, after a bankruptcy judge gave the Erlanger-based carrier approval to void the union's contract.  The ruling came before the two sides head back to the bargaining table Monday. 

 

Union officials said Friday that they have 10 days to decide whether to appeal and were exploring that option.  They said they plan to return to concession talks Monday - and, in the meantime, their members would not stage a strike or other work action unless Comair imposed new pay and work rules.

 

The Delta Air Lines subsidiary downplayed the court victory, saying it would still seek a settlement with its 1,000-member union and would hold off on implementing a contract of its own design.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060722/BIZ01/607220347/-1/rss

 

From the 7/25/06 Cincinnati Post:

 

CVG airfares nation's highest

By Kerry Duke

Post staff reporter

 

With an average one-way airfare of $230, Cincinnati/Northern Kentucky International Airport ranked as the costliest major airport in the nation to fly out of in the last quarter of 2005, according to a Department of Transportation analysis.  The $230 average fare for the last three months of the year at Cincinnati/Northern Kentucky was $55 more than the $175 the airport averaged during the last quarter of 2004 - a 31 percent increase.   

 

Travelers departing from the Hebron, Ky., airport paid 48 percent more than the national average for trips of similar distance and occupancy at other major airports around the country, according to the Domestic Airline Fares Consumer Report issued by the department's Office of Aviation Analysis.  For long-haul flights, travelers at Cincinnati/Northern Kentucky paid a 30 percent premium; on short-haul flights, the premium was 66 percent, the report found.

 

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060725/NEWS01/607250329/1010/RSS01

 

Leichtman believes Delta, which is seeking to emerge from bankruptcy, might rather abandon its hub here altogether.

 

"Delta knows what they are doing by jacking up these airfares," he said. "They are pricing themselves out of the market because they want to go into another market."

 

You've got to be kidding me. Obviously Mr. Leichtman has no idea how this industry works. How can they be pricing themselves out of the market when they OWN over 80% of it!? Also, Delta isn't "jacking up these airfares." Flights out of CVG have been priced at a premium for years. With market domination comes the ability to fix prices at a certain level and, while it might be bad for the average consumer, it equates to very strong revenue for the dominant corporation. The high yields Delta commands from CVG more than makes up for whatever loss in local passengers they may experience, making it one of the most financially sound hubs in the region. Believe me, Delta won't be abandoning their CVG hub anytime soon.

From the 7/26/06 Enquirer:

 

Comair showdown delayed

Time and options short for airline and union

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Negotiators with Comair and its flight attendants union this afternoon ended three days of concession talks in Washington, D.C. with two more proposals being exchanged but no deal.  Both sides are expected resume talks in the second week of August once new negotiations are scheduled, the union said.

 

The bankrupt Erlanger airline, hoping to cut costs and resume growing, so far is holding off on imposing new contract terms on the 1,000-member union after getting a judge's green light to do so on Friday.  But pressure is mounting on the Delta Air Lines subsidiary to resolve its standoff with the flight attendants, because the dispute is hindering its ability to win new business - and threatens to compound its woes.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060726/BIZ01/607260370/1076/rss01

 

Airport fares up 36.6% in year

By Kerry Duke

Post staff reporter

 

Air fares continued to soar at Cincinnati/Northern Kentucky International Airport in the first three months of this year, recording the highest year-to-year increase among the nation's major airports, according to a report released Wednesday by the U.S. Department of Transportation.  The cost to fly out of Cincinnati/Northern Kentucky jumped 36.6 percent in the first three months of 2006 compared with the same period in 2005.

 

That increase was tops among the 85 largest airports in the nation, and nearly 12 points higher than the second biggest, 24.8 percent at the Greensboro/High Point, N.C., airport.  The Hebron, Ky., airport's increase was more than three times the 10.3 percent average hike at all major U.S. airports, according to the department's Bureau of Transportation Statistics.  That 10.3 percent rise - in a statistical measure the bureau calls the Air Travel Price Index - was the biggest year-to-year rise since the index was established in 1995.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060727/BIZ/607270342/1001

From the 7/27/06 Enquirer:

 

Comair, union talks in hiatus

No deal after 3 days of negotiations on attendant contract

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Negotiators with Comair and its flight attendants union Wednesday concluded three days of concession talks in Washington, D.C., with two more proposals being exchanged but no deal.  Talks will likely resume in the second week of August, the union said. Company officials said, meanwhile, they are also reaching out to other labor groups that have already agreed to concessions that are contingent on specific pay cuts from the flight attendants.

 

Before authorizing Comair to throw out its current flight attendant contract Friday, Bankruptcy Court Judge Adlai Hardin had ruled earlier that the $8.9 million in concessions the airline originally sought was too harsh.  Connie Slayback, president of Local 513 of the International Brotherhood of Teamsters, said the company's 1,000 flight attendants - most of whom are based at the Cincinnati/Northern Kentucky International Airport - were in no rush to cut their own pay.  The union has threatened labor disruptions including a possible strike if Comair opts to impose its own terms following the favorable court ruling.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060727/BIZ01/607270311/1076/rss01

 

From the 7/29/06 Enquirer:

 

Comair, union set up talk

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair and its flight attendants have scheduled a new round of concession talks - in about a month.  Negotiators will meet Aug. 23 and 24 at a location to be determined, both sides said late Friday.  "The time for restructuring is now; however, those are the first available dates," Comair spokeswoman Kate Marx said.

 

A bankruptcy court judge July 21 authorized Comair to void its labor agreement with the flight attendants union, which has vowed a strike or other work action if the company imposes its own terms.  Comair says it needs to cut its operating costs to bid effectively for new aircraft and routes that will grow its business.  It has said it will continue to seek a negotiated settlement to avoid a courtroom or picket line battle.

 

The last disclosed offer from the Delta Air Lines subsidiary to the flight attendants was to cut $7.9 million in wages and benefits, while the union offered $6.2 million worth of concessions.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060729/BIZ01/607290336/1076/rss01

 

The Skymiles program is becoming a joke.  Have you ever tried to find a flight for 25,000 miles?  It is next to impossible anymore and they are all 50,000 mile flights, but still advertised as 25K flights.  Pisses me off!

 

 

Delta cuts Web booking bonus

 

Delta Air Lines may still want customers to book flights at its Web site but not enough to reward them with 1,000 SkyMiles for doing so.  The airline quietly cut the bonus for booking online in half to 500 SkyMiles five weeks ago.  "The 1,000 mile bonus for booking travel at delta.com was an incentive used to increase customer awareness of delta.com," said Delta spokeswoman Gina Laughlin.  "This promotion has served its purpose as the revenue growth from tickets purchased at delta.com has increased by more than 100 percent over the last few years."

 

Currently, more than 25 percent of all Delta tickets are purchased via delta.com, she said.  For years airlines have promoted booking reservations at their Web sites because it cuts costs and avoids commissions paid to travel agents.  In 1999, Delta went so far as to announce it would impose a $2 surcharge on domestic round-trip airfares not booked at its Web site. But that idea was dropped after customers and travel agents complained.  Instead, the airline tried to lure customers to its Web site with special deals and incentives like the SkyMiles.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060802/NEWS01/608020375

From the 8/3/06 Enquirer:

 

Comair faces new turbulence

Mechanics, pilots assert their concessions void

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair's effort to emerge from bankruptcy faces a new setback, as two unions that ratified concessions back in January said Wednesday that the deals are off.  The regional airline's inability to cut a deal with its flight attendants union for enough concessions violates a key promise in deals with the pilots and mechanics, the unions said.  Now, they both want to renegotiate.

 

After a protracted court battle, Comair was authorized last month by a bankruptcy judge to throw out its flight attendant contract - but it can impose only $7.9 million worth of concessions.  That falls short of the $8.9 million in cuts from the flight attendants that were specified in both the pilot and mechanic deals, which were contingent on the flight attendant deal.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060803/BIZ01/608030327/1076/rss01

 

From the 8/4/06 Enquirer:

 

Comair attendants file appeal

Union seeks to overturn ruling nullifying contract

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

The flight attendants union at Comair has filed an appeal of a judge's ruling authorizing the regional airline to void their labor contract.  Bankruptcy Court Judge Adlai Hardin last month approved the Delta Air Lines subsidiary's bid to throw out the contract of the 1,000-member union - most of them based at Cincinnati/Northern Kentucky International Airport in Hebron - to help the feeder airline restructure.

 

Though the airline has continued negotiations with the union, the ruling weakened the attendants' bargaining position.  Thursday, the union notified the bankruptcy court that it was seeking to reverse the decision in U.S. District Court.  The filing will not disrupt new talks scheduled for Aug. 23 and 24, both sides said.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060804/BIZ01/608040346/-1/rss

 

From the AP, 8/5/06:

 

 

Delta files to void pilots' pension

THE ASSOCIATED PRESS

 

Delta Air Lines Inc. filed a formal request to terminate its pilots' pension plan, as President Bush prepared to sign a bill aimed in part at helping the struggling carrier save its other employees' pensions.  If a bankruptcy court in New York approves the Atlanta-based carrier's request to void its pilots pension effective Sept. 2, the government's pension insurer would take over the plan and pay pilots a reduced benefit based on when they retire and other factors.

 

The 6,000 pilots, as part of a $280 million concessions agreement with the company first reached in April, have agreed not to oppose the pension termination request, though other groups may oppose it.  Delta notified the Pension Benefit Guaranty Corp. in June of its intent to seek termination of the plan. 

 

The bankruptcy court request comes just a day after the Senate approved a pension bill that provides special relief for Delta and Eagan, Minn.-based Northwest Airlines Corp., allowing them to have 17 years to fully fund their pension plans.  Delta, the nation's third-largest carrier, had lobbied hard for the bill, arguing it was essential to help it avoid terminating the pension covering its ground workers and flight attendants.  Bush said Friday he planned to sign the bill.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060805/BIZ/608050338/1076/rss01

 

From the 8/6/06 Enquirer:

 

The future of Delta

Comair costs move to front

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

HEBRON - Delta Air Lines' No. 2 executive says the airline will be patient in its quest to lower costs at Comair, even as its investment in its Erlanger-based subsidiary and facilities at the Greater Cincinnati/Northern Kentucky International Airport move to the forefront of the bankrupt company's restructuring this fall. 

 

Comair ran into new labor trouble last week.  Unable to get $8.9 million worth of concessions from its holdout flight-attendants union, the regional airline's pilot and mechanics unions announced last week they would seek to renegotiate concession deals they had already ratified.  The unions acted because Comair fell short of the targeted flight-attendant cuts that were written into their concession contracts.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060806/BIZ01/608060341/1076/rss01

 

From the 8/8/06 Enquirer:

 

Attendants won't block Comair

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

The lawyer for the flight attendants union at Comair said Monday he won't ask the court to block the regional airline from throwing out the labor group's contract and imposing new terms.  Last week, International Brotherhood of Teamsters Local 513 notified the bankruptcy court it would appeal the July 21 ruling authorizing Comair to ditch the flight attendants' contract and impose its last offer.  But the notification did not make it clear whether the union would also seek an injunction from U.S. District Court in New York City to bar Comair from acting on the ruling.

 

"We're not going to let the court save them from themselves - if Comair takes unilateral action, it will have to live with the consequences," said Bill Wilder, a lawyer for the flight attendants union.  The union represents about 1,000 flight attendants, most of them based at Cincinnati/Northern Kentucky International Airport in Hebron.  Both sides have said they would return to the bargaining table this month.

 

The move means the Erlanger-based Delta Air Lines subsidiary could impose terms if talks with the flight attendants don't produce the savings it's looking for to help lower its cost structure and restore its competitive edge.  The union said its members would either strike or engage in other work disruptions if the company imposed terms.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060808/BIZ01/608080313/1076/rss01

 

From the 8/10/06 Enquirer:

 

Delta's fuel costs top payroll

Airline reports $2.2 billion second-quarter loss

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

For the second time in recent history, Delta Air Lines reported Wednesday that its quarterly fuel costs surpassed payroll as its largest operating expense.  Delta executives for months have complained that sky-high fuel costs are thwarting austerity measures designed to bring the airline out of bankruptcy.  The latest results show just how persistent the problem remains.

 

The airline said the only other quarter that fuel cost more than labor was the fourth quarter of 2005.  The dominant carrier at the Cincinnati/Northern Kentucky International Airport reported a $2.2 billion quarterly loss for the three months ended June 30, up from a loss of $388 million in the year-ago quarter.  Delta has lost $16.6 billion since 2001.

 

Delta's payroll costs were just over $1 billion during the quarter - a 21.9 percent decrease from the same period last year.  Fuel costs were more than $1.1 billion, a 5.4 percent increase.  Fuel represented 25.9 percent of total operating expenses for the quarter, compared with 23.7 percent for salaries and related costs.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060810/BIZ/608100338/1001/RSS04

 

Great articles, grasscat. Honestly....with Mesa Airlines low-balling everyone on regional contracts, Comair is in real deep shit and they know it.

From the 8/15/06 Enquirer:

 

Unions want attendant deal

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair's pilots and mechanics unions are pressing the regional airline to resolve its differences with its flight attendants union before they agree to new concessions.  The Erlanger-based subsidiary of Delta Air Lines is seeking to cost cuts from all three of its unions to restore the feeder airline to competitiveness and resume growth.  Earlier this month, the pilots and mechanics said they would not honor previously ratified givebacks worth $18.3 million because Comair failed to get enough concessions from the flight attendants.

 

Comair has a new round of talks with the mechanics scheduled for Aug. 31, but the pilots haven't set up new discussions, the unions said. Last week, Comair held separate discussions with the two unions.  Both previously ratified deals with Comair, but both of those deals were also contingent the company getting $8.9 million worth of givebacks from the flight attendants - an amount ruled too harsh by a bankruptcy judge.  "Until there's final resolution with the flight attendants, there's not much we can do," said Joe Tiberi, spokesman for the mechanics union.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060815/BIZ01/608150327/1059/rss13

 

Oops....

 

 

Tax bills a bankruptcy casualty

By Tom O'Neill

Post staff reporter

 

The fallout from Delta Air Lines' bankruptcy is trickling down to schools, fire departments, libraries and other organizations in Boone County that count on tax dollars from Greater Cincinnati's largest air carrier.  Agencies ranging from Boone County's schools to the county health department to the Hebron fire department are out more than $3.4 million in revenue from taxes this fiscal year while Delta and its Comair subsidiary work their way through what could be a lengthy bankruptcy.

 

MISSING REVENUE

The taxes Delta and Comair owe several government entities and public agencies in Boone County, home to Cincinnati/Northern Kentucky International Airport, are in a holding pattern because of the two carriers' bankruptcies. The agencies and the amount of taxes each is waiting for:

 

Boone Co. Schools: $1,842,396

Boone Co. Library: $567,840

Boone Co.: $479,084

Hebron Fire Dept.: $375,634

Boone Co. Extension Service: $88,546

Boone Co . Health Dept.: $71,549

Total: $3,425,050

 

Source: Boone County Treasurer's Office

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060819/NEWS02/608190346/1011/RSS02

 

From the 8/22/06 Cincinnati Business Courier:

 

Delta bidding out some regional network service

Cincinnati Business Courier - 1:00 PM EDT Tuesday

 

Delta Air Lines on Tuesday issued a Request for Proposal (RFP) for jet service to replace a portion currently being provided by its regional carriers.  The move is part of Delta's attempts to lower its costs and restructure under its Chapter 11 bankruptcy proceedings.

 

The Atlanta-based airline said in a news release that it is asking for RFPs covering up to 43 of its 70-seat and 50 of its 50-seat regional aircraft.  Those aircraft would replace some of the existing service from hub cities like Atlanta, New York's JFK International Airport, and Cincinnati, as well as point-to-point flying.

 

That service is currently being provided by Delta Connection airlines, including Cincinnati-based Comair, along with Chautauqua Airlines, Shuttle America and Freedom Airlines.  Those airlines will also be able to submit RFPs to continue to provide the service.

 

Full story at http://cincinnati.bizjournals.com/cincinnati/stories/2006/08/21/daily18.html?surround=lfn

 

From the 8/23/06 Enquirer:

 

Sept. 18 is key Comair date

CEO: New bids mean stepped-up contract talks

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

ERLANGER - Stopping short of delivering an ultimatum, Comair's top executive said Tuesday the carrier effectively now has a deadline for settling its labor woes.  With its parent Delta Air Lines announcing it will seek lower bids for aircraft operated by Comair and other regional contractors, Comair chief executive Don Bornhorst said the locally-based carrier must make progress in negotiations with its three labor groups to deliver a credible bid by Sept. 18.

 

At a glance

Here is the status of talks between Comair and three key unions.

 

Flight attendants - New talks scheduled today and Thursday; Comair has court authorization to impose $7.9 million worth of concessions on the 1,000-member union, which has pledged a strike or other work action if the airline does so.

 

Pilots - Had ratified $17.3 million worth of concessions, contingent on $8.9 million worth of givebacks from the flight attendants ruled too harsh by a bankruptcy court. Now, the union representing 1,840 pilots says that deal is dead and a new pact must be negotiated. A new round of discussions is slated for Friday.

 

Mechanics - Had ratified $1 million worth of concessions, but with flight attendant cuts falling short of amounts specified in that deal, the 525-member union says it also wants to renegotiate. New talks scheduled for Aug. 30.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060823/BIZ01/608230327/1076/BIZ

 

From the 8/25/06 Enquirer:

 

Comair plans up in the air

Flight attendants, airline don't resolve issues

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair and its flight attendants union wrapped up two days of concession talks agreeing only to meet again, as both parties approach a crucial bidding deadline that could ultimately shrink the Erlanger-based regional carrier.  Connie Slayback, president of the 1,000-member flight attendants union, said progress was made but that serious economic issues remain.  Dates for new talks would likely be scheduled in the next few days, she said.

 

Comair executives said they also were encouraged by this week's discussions and wanted to continue negotiations as soon as possible.  In a memo sent to rank-and-file flight attendants, Dave Soaper, senior vice president of aircraft operations, promptly urged a new round of talks. 

 

The latest pause in negotiations comes just after Comair's bankrupt corporate parent, Delta Air Lines, intensified pressure on the feeder airline by announcing Tuesday that it would seek lower bids on future and existing regional flying.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20060825/BIZ01/608250353

 

From the 8/25/06 Cincinnati Business Courier:

 

Delta's bid-seeking could spell trouble for Comair

Cincinnati Business Courier - August 25, 2006

by Lucy May

Senior Staff Reporter

 

Delta Air Lines' announcement to seek bidders for planes and routes now operated by its Comair subsidiary could be the start of an even tighter financial bind for Comair.  If Comair loses its 70-seat jets in a competitive bidding process and has to make layoffs, the airline would have to eliminate the jobs of its most junior pilots, Comair President Don Bornhorst said.  That would leave Comair with its best-paid, most senior pilots flying smaller, older planes that are more expensive to maintain and have less potential to generate revenue, Bornhorst said.

 

It's the same fix Minneapolis-based Mesaba Airlines found itself in after Northwest Airlines rejected the leases on Mesaba's fleet of 70-seat jets.  "It's that bind that you can't get yourself out of.  Now you must ask for even deeper cuts because you're dealing with more senior employees.  And the pilots are in an impossible spot.  They say, 'I can't keep taking these deep, deep cuts just because I've been here longer,'" Bornhorst said.

 

If Comair, on the other hand, can reduce its labor costs in time to submit a credible bid to Delta by Sept. 18, the Erlanger-based carrier could have the opportunity to grow by 1,000 employees if it can win 50 new planes with crews of about 20 people each, he said.  "That is why growth is so important and why this is such a great opportunity," he said. "With growth, that means new airplanes, covered by warranty, and new crews for them. That's what's going to keep the airline vibrant."

 

Full story at http://cincinnati.bizjournals.com/cincinnati/stories/2006/08/28/story3.html?b=1156737600^1336139

 

From the 8/29/06 Enquirer:

 

Delta eases off Comair deadline

Wanted to take bids from competitors

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Because of the crash investigation at Comair, Delta Air Lines said it might relax a critical Sept. 18 deadline that could shrink its Erlanger-based subsidiary's operations.  Meanwhile, industry experts said the crash was unlikely to hurt customer loyalty or discourage passengers from flying either Delta or Comair in the long term.

 

Just days before Sunday's crash, bankrupt Delta put Comair on notice that it was putting a large chunk of its regional flying out to bid.  The move renewed pressure on Comair to get cost cuts from its unions.  Comair has tried for most of the year to win pay and benefit concessions from its unionized employees.

 

Last week, Delta effectively forced Comair to audition for its job feeding passenger traffic to mainline operations.  Delta said it would seek lower bids by Sept. 18 on future and existing regional flying.  The move put up for grabs 27 70-seat jets and an undetermined number of 50-seaters flown by Comair, which the airline said could jeopardize 600 or more jobs.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20060829/BIZ01/608290313

 

Delta makes profit, a first in Chapter 11

ENQUIRER STAFF/WIRE REPORTS

August 31, 2006

 

ATLANTA - Delta Air Lines Inc., the nation's third-largest carrier, said Wednesday it made a profit of $69 million in July, marking its first monthly net gain since the company entered Chapter 11.

 

The Atlanta-based company said in a bankruptcy court filing that excluding reorganization items, it had net income of $99 million in July. Revenue for the 31-day period was $1.71 billion.

 

The net profit for the month was the first since Delta entered bankruptcy in September 2005, spokeswoman Betsy Talton said.

 

A year ago, Delta said it had a net loss of $41 million in July.

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060831/BIZ01/608310322/1076/BIZ

From the 9/1/06 Cincinnati Business Courier:

 

Delta asks to terminate pilots pension plan Sept. 2

Cincinnati Business Courier - 9:09 AM EDT Friday

 

Delta Airlines is still trying to terminate the pension plan of its active and retired pilots. It has asked the court to make the termination effective Sept. 2.  Active pilots are not opposing the termination as agreed to in the settlement with the company signed last April.  Both the pension insurer, Pension Benefit Guaranty Corp., and unsecured creditors support the motion to terminate the plan.

 

Delta is trying to terminate the pension plan as part of its restructuring to emerge from bankruptcy protection in 2007.  Delta has promised its pilots a $650 million note in the event the pilot pension is terminated, as well as a $2.1 billion unsecured claim.  Only the retired pilots are objecting to the proposed settlement.  There is precedent for the pension dismissal, as United Airlines terminated its pilots' pension when it was in bankruptcy.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060901/BIZ01/609010344/1076/rss01

 

From the 9/2/06 Cincinnati Post:

 

Woes pile up at beleagured Comair

Analysis by Greg Paeth

Post staff reporter

 

A week ago, Comair's management had one focus: complete negotiations with the airline's three unions so it could cut its costs and become more competitive.  But on Sunday, a Comair jet carrying 50 people crashed at the Lexington airport, killing 49, diverting management's attention from its long-term problems to the immediate needs of victims' families and investigators trying to piece together what happened.

 

That fatal crash of Flight 5191, combined with Comair's deteriorating relationship with its parent, Delta Air Lines, have created the biggest crisis in the homegrown carrier's 29-year history.  The depth of the human tragedy is immeasurable.  But cutting costs - not the dramatic crash - will determine whether Erlanger-based Comair can survive the turmoil, airline analysts say.

 

"When they get beyond 5191, they're back where they started,'' said Michael Boyd, president of the airline consulting firm Boyd Group in Evergreen, Colo. Comair is a "high-cost leasing company - a vendor,'' Boyd said.  "If they can't get their costs down, they will be shut down.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060902/BIZ/609020325/1001/RSS04

 

From the AP, 9/6/06:

 

Court OKs Delta plan to end pension

BY BARBARA ORTUTAY | THE ASSOCIATED PRESS

 

WHITE PLAINS, N.Y. - A federal bankruptcy judge on Tuesday approved Delta Air Lines Inc.'s request to terminate its pilots' pension plan.  Judge Adlai Hardin's decision came after a splinter group representing retired pilots formally withdrew its objection to the termination of the plan, which included an option for pilots to retire early at the age of 50 and take out half their entitlements in one lump-sum payment.

 

Delta, the nation's third-largest carrier, must still go to the federal government's pension agency, the Pension Benefit Guaranty Corp., to officially end the plan.  At that time, the agency takes over the plan and pays pilots reduced benefits. The change would be retroactive to Sept. 2.  Delta said its current retired pilots would still receive, on average, about $75,200 a year, including the lump-sum payment.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060906/BIZ01/609060330/1076/rss01

 

From the 9/16/06 Enquirer:

 

Comair focuses on two of three unions

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

In its bid to bring down labor costs, Comair has turned its focus in recent weeks to negotiating a deal with its pilots and mechanics unions while waiting on further talks with its holdout flight attendants' union.  The bankrupt regional airline met with its pilots' union this past week in Washington, D.C., and is scheduled to talk with the mechanics' union on Monday and Tuesday.  The pilots' union said it paused weeklong negotiations Thursday because it found Comair inflexible.

 

The pilots union ratified $17.3 million early this year with the understanding the flight attendants would contribute $8.9 million worth of concessions.  But the company was unable to negotiate those cuts with the flight attendants.  Since that impasse, both the pilots and mechanics, who previously ratified $1 million of concessions, have balked at implementing their cuts.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060916/BIZ01/609160337/1076/rss01

 

From USA Today, 9/18/06:

 

Delta weathering bankruptcy

Focus on international flights pads bottom line

BY MARILYN ADAMS | USA TODAY

 

One year after filing for bankruptcy protection, Delta Air Lines is a smaller, more worldly airline.  A year ago last Thursday, the Atlanta-based carrier filed for Chapter 11 bankruptcy protection, where it remains today.  Over that period, Delta has trimmed costs by eliminating jobs, cutting pay, reducing flying capacity and shedding pensions.  It’s also shifted more of its flying to potentially more lucrative international routes.

 

The changes made in bankruptcy keep Delta on schedule to exit bankruptcy next summer, Delta says.  Today, international routes account for one-third of Delta’s flying capacity and 35 percent of its revenue.  A year ago, the airline directed just 26 percent of its capacity to international flights.  Just 20 percent of revenue came from international flying.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060918/BIZ/309180005/1076

 

From the 9/19/06 Cincinnati Post:

 

Comair makes 2nd Q profit

But it still trails regional carriers

Post staff report

 

While Comair made a profit in the second quarter of the year, the Erlanger-based airline was the least profitable among seven regional carriers included in a U.S. Transportation Department report issued Monday.  Comair, a wholly owned subsidiary of Delta Air Lines, showed $6 million in profits for the three-month period from April through June, which was down 2.3 points from the 4.4 percent profit margin recorded in the second quarter of 2005, according to the department's Bureau of Transportation Statistics.

 

In a comparison that included network and low-cost airlines as well as regional carriers, the bureau's report also found Comair's unit costs among the highest in the industry, surpassed only by U.S. Airways and Continental.  Comair's cost for seat mile for the quarter ran 16.4 cents; U.S. Airways and Continental recorded unit costs of 17 cents per seat mile.

 

Delta showed $393 million in profits for the second quarter - a profit margin of 11.1 percent. That compared with a loss of 4.1 percent in the second quarter of 2005, the bureau reported.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060919/BIZ/609190348

 

From the 9/20/06 Enquirer:

 

 

Comair puts threat on table

Airline may impose terms on attendants

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair will hold negotiations Thursday with its flight attendants union for the first time in a month, but the regional airline signaled Tuesday it might ultimately opt for a showdown with its holdout union.  Both sides confirmed they will meet again in Washington, D.C., after Comair spent recent weeks trying to coax deals with its two other unions that this summer refused to implement ratified agreements citing the standoff with flight attendants.

 

In July, Comair was authorized by a bankruptcy judge to impose a new contract on its flight attendants union. The union has said it would strike or engage in some other work action if the company imposed terms, which would cut $7.9 million in costs.  Until now, company officials have stressed they were seeking a deal and avoided discussing alternatives.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060920/BIZ01/609200329/1076/rss01

 

Mesa Airlines will underbid anyone, anytime. Trans States bids ridiculously low too. Their super low bidding process is one reason why Atlantic Coast Airlines...an airline that had a very similar role at United's IAD operation to what Comair does at CVG....decided to it would be more prudent to go out on their own as Independence Air. Of course it didn't work out that way. Mesa and Trans States have, in my opinion, awful service and operational performance, so I hope Comair hangs on.

From the 9/22/06 Enquirer:

 

 

Comair negotiations continue

Two unions, airline to discuss concessions today

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair negotiators are due back at the bargaining table today with two of its unions after meeting Thursday.  The bankrupt Erlanger-based regional airline is seeking $26.2 million in concessions from its three unions to lower its costs and retain business with its corporate parent Delta Air Lines.  It's meeting with its flight attendants and pilots in Washington, D.C.

 

Comair officials declined to comment on the progress other than to confirm the latest talks.  Union officials also were tight-lipped about the latest details.

 

Comair appears close to a showdown with at least its flight attendants union, which it has won bankruptcy court approval to impose a new contract that would squeeze $7.9 million worth of concessions.  The union has threatened a strike or other work action if the company imposes terms.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060922/BIZ01/609220346/-1/rss

 

From the 9/23/06 Enquirer:

 

 

Comair talks with 2 unions

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Separate sets of concession talks Friday between Comair and its flight attendants and its pilots unions ended without agreements.  But the various parties are expected to resume talks next week in Washington, D.C.  The bankrupt Erlanger-based regional airline is seeking as much as $26.2 million in concessions from its three unions to lower its costs and retain business with its corporate parent Delta Air Lines.  Delta has putting the flying rights to dozens of Comair jets out to bid to other carriers.  Comair has until Oct. 2 to submit a bid, which it hopes to make as low as possible by cutting labor deals.

 

Connie Slayback, president of the flight attendants union, declined to characterize how discussions were progressing. She did say her union delivered a counter-proposal to a Comair proposal issued earlier this week.  J.C. Lawson, head of the pilots union, said he was discouraged by the negotiations, and described the company as unflexible.

 

A potential showdown is looming between Comair and flight attendants. It has won bankruptcy court approval to impose a new contract that would squeeze $7.9 million worth of concessions.  The union has threatened a strike or other work action if the company imposes terms.  Talks on Thursday and Friday with the flight attendants were the first in almost a month. 

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060923/BIZ01/609230346/1076/rss01

 

From the 9/24/06 Enquirer:

 

Delta to view Comair bid

Subsidiary airline's payroll at risk

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Eight days from now, Comair will submit a bid critical to its future.  Depending on how corporate parent Delta Air Lines views the bid, the Erlanger-based regional airline could ultimately see its payroll of 6,500 chopped by an estimated 850 pilot and flight attendant jobs - or boosted by 1,100 positions.  Delta is already sifting through bids submitting by other regional airlines seeking to feed passenger traffic to its mainline operations.  Delta gave its subsidiary a two-week extension until Oct. 2 following the crash of Flight 5191 in Lexington.

 

While the crash will likely lead to settlements paid by insurers, Delta's need for lower operating costs poses a bigger threat to Comair.  After a year in Chapter 11, the Atlanta-based carrier has focused its restructuring efforts on lowering its regional flying costs.  Managers at Comair, which followed Delta into bankruptcy, say the two starkly different paths for the company depend on their ability to win concessions from their three unions.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060924/BIZ01/609240354/1076/rss01

 

Jobs, jets could be lost

Company, unions still talking

By Greg Paeth, Post staff reporter

 

Three days before what could prove to be a make or break deadline, Comair and its 1,650 pilots are on the brink of a deadlock that could cost the regional airline jobs and jets.  While that may be gloomy news for Comair's 4,300 employees in Greater Cincinnati, it could prove to be the best possible scenario for at least 10 Comair competitors who have submitted bids for flights that Comair already handles and for others Comair wants to add.

 

The regional airline that is headquartered in Erlanger, Ky., says hundreds of jobs could be lost if it can't submit a competitive bid Monday to Delta Air Lines, which asked a long list of carriers to submit proposals for 50-seat, 70-seat and 76-seat aircraft that would handle connector flights to Delta's four U.S. hubs.

 

Although Comair and unions representing its mechanics and flight attendants are holding 11th hour meetings in an effort to resolve their differences by Monday, Comair and its pilots aren't scheduled to sit down at the bargaining table until Tuesday.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20060929/NEWS01/609290363/1001/BIZ

From the 9/30/06 Enquirer:

 

Comair, pilots talk Saturday

But competitive bid window closes soon

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Concession negotiations between bankrupt Comair and its pilots union were back on Saturday.  Meanwhile, the regional airline and its flight attendants union painted different pictures of the state of their separate talks.

 

Comair is desperately trying to win about $25.2 million worth of cost cuts from its three unions, so it can submit a competitive bid on Monday to parent Delta Air Lines.  Bankrupt Delta is seeking to lower its regional flying costs by putting flying rights to 93 existing jets out to bid - many of them currently flown by Comair.  The Erlanger-based airline estimates it could lose about 42 aircraft and 850 jobs if it doesn't submit a competitive bid.

 

Any job cuts could hit hard here.  The airline employs 6,500, including 4,400 based at the Cincinnati/Northern Kentucky International Airport.  If Comair loses the planes, parent Delta Air Lines would simply assign them to another operator, so the shift wouldn't affect passengers.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20060930/BIZ01/609300327/1076/rss01

 

From the 10/2/06 Enquirer:

 

Comair to unions: Time's up

Bid to keep planes will fall short, it says

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

With no more time to cut costs, Comair said this afternoon it will submit a critical bid to parent Delta Air Lines today that includes projected savings from its flight attendant and mechanics unions - but none from its largest union, covering its pilots.  Comair officials said if they don’t cut a deal soon with the flight attendants they will impose $7.9 million worth of cost cuts on the flight attendants union.

 

Still, the company insisted today’s announcement didn’t constitute an official notice of imposing new contract terms - an action that the union has warned would prompt it to strike or take another work action.  The bankrupt Erlanger-based company is all but certain to go to court in a bid to block any work action by the attendants, which are represented by the Teamsters.

 

Delta, which is also in Chapter 11, is seeking to cut costs for its regional flying operations - a process that has put nearly a third of Comair’s fleet up for grabs among other regional airlines.  Comair estimates it could lose 850 pilot and flight attendant jobs as an estimated 42 jets would be reassigned to other regional carriers in Delta’s network.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061002/BIZ01/310020030/1076/rss01

 

---

From the 10/2/06 Cincinnati Business Courier:

 

Delta back in the red for August

Cincinnati Business Courier - 10:49 AM EDT Monday

 

Delta Air Lines Inc. has gone from a monthly profit in July to a monthly loss in August.  Atlanta-based Delta has reported a net loss of $11 million in August, compared with a net loss of $158 million in August 2005.  Delta had a profit of $69 million in July 2006.

 

Delta also said its outstanding common stock will have no value and will be canceled under any plan of reorganization it proposes, and that the value of its various pre-petition liabilities and other securities is highly speculative.  As of Aug. 31, bankrupt Delta had $3.9 billion in cash, cash equivalents and short-term investments, of which $3 billion was unrestricted.

 

Full story at http://www.bizjournals.com/cincinnati/stories/2006/10/02/daily5.html?from_rss=1

 

From the 10/3/06 Enquirer:

 

Comair reaches no labor deals

Airline submits bid to Delta, expects cuts

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

ERLANGER - Comair said it expects to shrink by dozens of planes and hundreds of jobs after submitting a lackluster bid Monday to keep less than a third of its fleet flying for its parent company, Delta Air Lines.  After months of negotiations, Comair was unable to win firm agreements from its three unions to cut pay and benefits.  The airline wanted the concessions to lower its operating costs enough to keep and win more business from Delta.

 

Job cuts, which apparently wouldn't occur until next year, could hit hard here. The local airline employs 6,500, including 4,400 based at Cincinnati/Northern Kentucky International Airport.  If Comair loses the planes, Atlanta-based Delta would assign them to another operator, so the shift wouldn't affect passengers.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061003/BIZ01/610030313/1076/rss01

 

From the 10/5/06 Enquirer:

 

Comair unions slam tactics

They argue for 'fair, consensual' cuts

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair's pilots and flight attendants jointly criticized their employer's bargaining tactics Wednesday.  Both unions reiterated their commitment to provide bankrupt Comair with concessions to help it restructure, but that any cuts must be "fair and consensual."  Yet the unions also said the statement doesn't signal their intention to take broader joint action.

 

"The pilots and flight attendants will not have contract terms imposed upon them regardless of some artificial deadline," said J.C. Lawson, head of the pilots union, in the statement.  "We all want to help our airline emerge from bankruptcy and return to profitability but we have to be able to reach a deal that both the flight attendants and management can agree to," said Connie Slayback, president of the flight attendants union.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061005/BIZ01/610050321/1076/BIZ

 

---

From the 10/5/06 Cincinnati Post:

 

Bidders ready to bump Comair

By Greg Paeth

Post staff reporter

 

Three of the airlines competing with Comair to fly hundreds of flights for Delta already have well-established connections with the Atlanta-based main carrier.  SkyWest, Republic Airways and Mesa Air Group already handle hundreds of "Delta Connection" flights every day and could expand their role with Delta substantially if selected by the airline to shuttle passengers to its hub airports.

 

Comair is in a bidding war to provide the Delta service.  Its management said Monday the airline put in a bid that was not competitive because it has failed to reach cost-cutting concessions with its unions.  Failure to win the business could mean hundreds of job cuts at the Erlanger-based airline.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20061005/BIZ/610050342

 

CVG ranks first in on-time record

 

The Greater Cincinnati/Northern Kentucky International Airport was ranked the nation's No. 1 airport for year-to-date on-time arrivals and departures through August, according to a government ranking of 31 major airports released Wednesday.  During the month of August alone, CVG ranked No. 2 in on-time departures - leaving on schedule 85.6 percent of the time and No. 3 in on-time arrivals - showing up according to plans 82.9 percent of the time.

 

More at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061006/BIZ01/610060337/1001/BIZ

From the 10/6/06 AP:

 

Delta modifying health plan

THE ASSOCIATED PRESS

 

ATLANTA - Delta Air Lines Inc., which is operating under bankruptcy protection, reached an agreement Thursday with thousands of retirees on changes to medical benefits that will save the nation's No. 3 carrier about $50 million annually.  The deal, which would need to be approved by a bankruptcy court judge, covers a portion of roughly 42,000 pilot and non-pilot retirees, their spouses and survivors, Delta spokeswoman Betsy Talton said.  A hearing is scheduled Oct. 19.

 

For non-pilots, Thursday's agreement means that certain retirees will go from paying no premiums for their health care coverage before reaching 65 to paying a portion of the cost of their coverage, court papers say.  Others will go from paying 10 percent to 25 percent of the cost and others will go from paying 22 percent to 35 percent of the cost.  Those non-pilot retirees currently over 65 will be eligible for a $50 monthly subsidy toward the premium for medical and prescription drug coverage.  There also are changes to medical benefits for pilot retirees under the agreement.

 

Delta has agreed to place limits on further changes to certain of the cost-sharing percentages through 2010 and to establish a fund that will include premium subsidies for certain retirees who experience hardships from the changes.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061006/BIZ01/610060343/1076/BIZ

 

From the 10/8/06 Enquirer:

 

Can Comair reinvent itself?

Airline execs say yes; analysts are skeptical

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Once a trailblazer in the regional airline industry, Comair has slipped to the No. 6 spot for number of passengers carried - down from the No. 3 perch it held as late as two years ago.  While Comair and its corporate parent, Delta Air Lines, have been stuck in Chapter 11 bankruptcy, rivals have soared past the Erlanger-based airline.  With Delta determined to squeeze costs out of its regional operations and Comair fearful that it soon will lose a chunk of planes, the local airline looks to fall further - with economic consequences for the region.

 

A potential loss of 850 jobs - 13 percent of its total employment - at Comair is likely to trigger 850 more job cuts elsewhere in Greater Cincinnati and Northern Kentucky, economists estimate.  Even if more regional flying and jobs go to contractors, analysts say, Delta's hub at the Cincinnati/Northern Kentucky International Airport - which employs roughly 4,000 - won't shrink further.  But they add that Comair's future will remain murky unless it can cut its labor costs.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061008/BIZ01/610080302

 

From the 10/9/06 Cincinnati Business Courier:

 

Comair to void flight attendants' contract

Cincinnati Business Courier - 4:03 PM EDT Monday

 

Comair, in the absence of an agreement with its flight attendants' union, will force changes in the existing contract, the airline said Monday afternoon.  Comair said in a news release that it will make adjustments to the contract, including an average per-employee pay cut of 7.5 percent, or $3,700, including benefits.  The flight attendants' average salary is $29,950.

 

The carrier said it will also file a motion for an injunction to prevent the attendants' union, the International Brotherhood of Teamsters Local 513, from calling a strike.  The union's members had authorized a strike if the contract was voided.  Comair said in the release that it believes such a work action would be illegal.

 

Full story at http://cincinnati.bizjournals.com/cincinnati/stories/2006/10/09/daily9.html?surround=lfn

 

Comair imposes cuts, tries to ban a strike

By Greg Paeth, Post staff reporter

 

Comair plans to impose wage and benefit cuts on its approximately 1,000 flight attendants and wants to head off a strike with a court order that would prohibit any "work action" that might disrupt operations.  The company said that after 11 months of unsuccessful negotiations it will impose about $7.9 million worth of cuts on Nov. 15.

 

Those reductions have been approved by the U.S. Bankruptcy Court that is overseeing the financial restructuring of Erlanger-based Comair and its parent company, Delta Air Lines.  "After nearly a year of negotiations with the International Brotherhood of Teamsters, it became apparent that we had exhausted every opportunity to reach a consensual agreement and that we had no other choice," said Kate Marx, a spokeswoman for Comair. 

 

Marx said the company plans to file its request for an injunction today.  Both Marx and Connie Slayback, president of the flight attendants' local, held out hope that a negotiated deal can be reached before mid-November.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20061010/NEWS01/610100338

Sale of Comair not ruled out

By Stan Choe, Associated Press

 

NEW YORK - Delta Air Lines Inc. Chief Executive Gerald Grinstein said Thursday the company has no plans to sell its regional subsidiary Comair, but he stopped short of saying Delta wouldn't entertain an offer should one come along.  Grinstein said Delta needs the feeder service that Comair provides but does not necessarily have to own it. Comair, based in Erlanger, feeds passengers into Delta's mainline operations and has been key to the growth of the Cincinnati/Northern Kentucky International Airport.

 

During wide-ranging comments at a stop in New York, Grinstein also said he plans to step down soon after the nation's No. 3 carrier emerges from bankruptcy protection.  As for the prospect of more job cuts between now and then, Grinstein said Delta is "quite close to where we want to be." He said there will be additional "fine-tuning," but he doesn't expect any announcements for layoffs involving thousands of workers.  Since 2001, Delta has announced plans to cut up to 33,000 jobs.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20061013/NEWS01/610130355

Comair, attendants reach deal

Tentative agreement still must be ratified but is rare good news

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair and its holdout flight attendants union struck a tentative agreement Friday to cut salaries in an effort to turn around the bankrupt regional airline.  Neither the regional airline nor union officials released a dollar value for the concession package but the union said it included:

 

• 7.5 percent pay cut for all flight attendants regardless of seniority.

 

• Job protection in the event Comair is sold by parent company Delta Air Lines.

 

• $5.5 million in cash to be distributed among the flight attendants later.

 

The development is good news for the beleaguered company.  The potential breakthrough comes after nearly a year of off-and-on but mostly off negotiations, a series of court challenges and the constant threat of a possible strike.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061014/BIZ01/610140375/1076/BIZ

Comair sues Lexington airport

Says others also liable in crash

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Comair is suing Blue Grass Airport in Lexington and the U.S. government to share liability for the Aug. 27 Flight 5191 crash that killed 49.  While the cause of the crash is still under investigation, Comair said it wanted to ensure that all parties, including the Federal Aviation Administration and the airport, whose conduct contributed to the accident, bear their fair share of the liabilities.

 

Comair is suing the airport, other Lexington officials and the U.S. government in federal district court in Kentucky asking for a "declaratory judgment" that they share responsibility for the accident.  The company is not seeking any monetary damages, but wants a legal declaration that if it settles claims the airport and the U.S. government will contribute toward payment.

 

The airline filed an administrative claim against the federal government based on actions by the FAA - the first step prior to making a legal claim.  The claim said it has incurred more than $17.3 million in losses related to the crash.

 

More at http://www.enquirer.com

Comair settles with mechanics

Pilot deal still elusive

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Bankrupt Comair reached a deal Thursday to cut pay and benefits with its mechanics union.  The deal came just five days after the Erlanger-based regional airline reached a similar pact with its flight attendants union.  The subsidiary of bankrupt Delta Air Lines is seeking to lower its operating costs to make it more competitive.

 

Comair said it would leave it to the union to release details of the pact.  But union officials said they wouldn't do so until its 350 members had received them on Friday.  The mechanics previously ratified a $1 million concession package in January that cut average pay by 2 percent.  After Comair was unable to win $8.9 million worth of concessions from the flight attendants, the mechanics demanded better terms. Getting $8.9 million from the attendants was a contingency of the previous deal.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061019/BIZ01/610190322/1076/BIZ

From the 10/16/06 Cincinnati Business Courier:

 

 

IAM launching unionization effort at Delta

Cincinnati Business Courier - October 16, 2006

 

Delta Air Lines Inc.'s fleet-service workers, hit by pay cuts from the bankrupt airline, may be ripe for unionizing, according to a TheStreet.com story.

 

The International Association of Machinists said it is starting a campaign Monday to organize the 6,000 workers, who perform ground-service jobs like baggage handling. A union spokesman said in the story that employees contacted the union after setting up an internal organizing structure.

 

Delta's employees are among the least-unionized of U.S. airlines, TheStreet.com said. Attempts to organize flight attendants, mechanics and fleet-service workers have failed in the past decade.

 

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

 

http://cincinnati.bizjournals.com/cincinnati/stories/2006/10/16/daily10.html?surround=lfn