From the 12/21/06 Enquirer:

 

Judge rules for Comair

BY JON NEWBERRY | ENQUIRER STAFF WRITER

 

A federal bankruptcy court judge today gave Comair Inc. permission to reject its labor agreement with its pilot’s union, setting the stage for a possible strike over the holidays unless the two sides can reach a deal.  The 1,600 pilots have already authorized a strike, should the Erlanger-based commuter airline follow through and impose $15.8 million in wage cuts it’s been seeking. Comair says it needs the cuts to emerge from bankruptcy reorganization, calling its pilots costs the highest in the regional industry.

 

Comair has been working for months to lower its overall costs and escape bankruptcy. It cut the pay of non-union employees last year and this year won concessions from its flight attendants and mechanics unions.  Judge Adlai S. Hardin Jr. said in his opinion that Comair’s proof of the need for pay cuts “was overwhelming,” including a showing that it has the highest pilot compensation costs of all regional airlines except one.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20061221/BIZ01/312210028

 

From the 12/22/06 Enquirer:

 

Comair seeks to block strike

BY JON NEWBERRY | [email protected]

 

Comair today asked a bankruptcy court judge to block a potential strike by the airline's 1,600 pilots. The move came a day after the judge gave the airline permission to nullify the pilots union's contract. No court date was set for arguments on the strike-blocking injunction. Thursday's ruling set the stage for a possible strike over the holidays, if a last set of concession talks next week fails.

 

The pilots voted overwhelmingly earlier this month to authorized a strike if the Erlanger-based regional airline imposes $15.8 million in pay cuts. The company has told the union that it plans to do so Dec. 30, if next week's talks fail.  The two sides had previously scheduled talks for Dec. 27-29, and there has been no change in those plans at this point, Comair spokeswoman Kate Marx said Thursday.

 

Any strike could have dramatic consequences for travelers at the Cincinnati/Northern Kentucky International Airport. Comair is the leading carrier at CVG - operating 263 daily flights from the Hebron airport, or about 38 percent of its airline's schedule. About 4,400 of Comair's 6,300 employees work out of the local airport.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061222/BIZ01/612220350

 

From the 12/23/06 Enquirer:

 

Comair seeks to prevent strike

Showdown next week as sides debate walkout

BY JON NEWBERRY | [email protected]

 

The months-long struggle between Comair and its pilots appears headed for a climactic showdown next week, after the airline Friday asked a judge to bar a strike.  The showdown will not take place on a picket line but in a courtroom. It will hinge on the question that the company and the union have debated in the background for months: Would a strike be legal?

 

Charlie Craver, a law professor at George Washington University who specializes in labor and employment law and dispute resolution, said there will be little legal precedent for Bankruptcy Court Judge Adlai Hardin to go by when he makes his ruling. "No one really thought about it until recently," Craver said.

 

The two sides are scheduled to hold concession talks Wednesday, Thursday and Friday.  If they fail, Comair says, it will impose $15.8 million in pay cuts - and the union's leaders say the pilots could walk.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061223/BIZ01/612230338

 

From the 12/27/06 Enquirer:

 

Next 3 days crucial for Comair

BY ALEXANDER COOLIDGE | [email protected]

 

Negotiators for Comair and its pilots union resume bargaining today in a final set of concession talks to avoid a potential strike.  Both sides say they hope a deal is reached. But without one, the 1,600 pilots could walk out this weekend.

 

Three days of negotiations are scheduled before Saturday - the Erlanger-based carrier's deadline for imposing $15.8 million in court-authorized pay cuts designed to lift it out of bankruptcy.  Members of the Air Line Pilots Association have authorized a strike if Comair imposes the cuts. A bankruptcy court judge will hear arguments Thursday on whether to block a strike.

 

Judge Adlai Hardin weakened the pilots' hand last week when he approved Comair's bid to impose lower pay. If Hardin forbids a strike, any work action by the pilots would be delayed for weeks, as the union - which said it would honor Hardin's ruling - appeals.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061227/BIZ01/612270317

 

All from the 12/29/06 Enquirer:

 

Truce averts Comair strike

Five-week reprieve saves holiday travel

BY ALEXANDER COOLIDGE | [email protected]

 

Comair and its pilots union late Thursday averted a possible strike for five weeks after negotiators cut a deal to allow more time for bargaining.  The delay means travelers won't face the possibility of the nation's third-largest commuter airline being shut down over the holiday travel period.

 

Bankrupt Comair faced a Monday deadline to negotiate a new deal or impose $15.8 million worth of court-authorized pay cuts before a "snapback" clause in the current contract would have kicked in.  The clause would have boosted pilot pay for Comair's failure to enlarge its fleet and would have added $8 million to the bankrupt carrier's costs. 

 

Comair had planned to impose the cuts Saturday, which the union said would have prompted a strike.  Under Thursday's treaty, Comair won't impose court-approved cuts, and the union waives the snapback. The truce lasts until Feb. 2.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061229/BIZ01/612290339

 

From the 12/30/06 Enquirer:

 

More Comair cutbacks coming?

Delta says decision made, but it won't say who got contracts

BY ALEXANDER COOLIDGE | [email protected]

 

While both Comair pilots and executives breathed a sigh of relief after a last-minute deal this week averted a strike, the Erlanger-based regional airline still faces potential fleet cutbacks at the hands of parent Delta Air Lines.  Delta said Friday that it already has made a decision on what carriers will do its regional flying in the future - though it refused to say whether Comair would lose more jets.

 

Comair officials have pushed hard to cut pilot and other pay to improve the airline's chances of retaining regional flying for Delta. In November, Delta said it would strip Comair of its 12 70-seat jets and let contractor SkyWest operate them next spring. Delta said the decision on the remaining 81 jets in play - some in Comair's fleet - would occur by the year-end.

 

Full story at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20061230/BIZ01/612300361

 

From the 1/5/06 Enquirer:

 

Comair, union enlist mediator

An effort to keep talks going

BY ALEXANDER COOLIDGE | [email protected]

 

ERLANGER - Comair Inc. and its pilots union announced Thursday they have drafted a private mediator to keep dialogue going in new concession talks starting next week.  The company and union have tapped Richard Bloch, a private mediator who helped broker a deal between Comair's parent company, Delta Air Lines, and its pilots union last year.

 

In a joint statement, Dave Soaper, Comair's senior vice president of aircraft operations, and J.C. Lawson, chairman of the pilots union, welcomed Bloch's assistance and hoped to reach an agreement.  "We are grateful Mr. Bloch has agreed to work with us, and we welcome his participation in our discussions," they said. "We are hopeful that with Mr. Bloch's help, we can come together and make meaningful progress."

 

More at http://news.nky.com/apps/pbcs.dll/article?AID=/AB/20070105/BIZ01/701050346

 

$2.5B pledge to help Delta

CINCINNATI POST

January 30, 2007

 

ATLANTA - Delta Air Lines Inc. said today it has obtained a commitment for $2.5 billion in so-called exit financing it says is key to its plan to emerge from bankruptcy by the middle of this year as a standalone company.  The money - lent by a consotrium led by six financial groups - will be used to repay Delta's $2.1 billion in-bankruptcy financing led by GE Capital and American Express, make other payments and increase its cash reserves.  Delta said the financing will be secured by collateral in its existing financing for its operations while in bankruptcy.

 

The financial groups are JPMorgan, Goldman Sachs & Co., Merrill Lynch, Lehman Brothers, UBS and Barclays Capital.

 

Also today, Delta has assured its creditors that it won't rule out the possibility of merging with another airline after exiting from bankruptcy if it defeats a hostile takeover offer from US Airways Group Inc., according to people familiar with the situation. The Wall Street Journal reported today that, to build support for its plan to remain independent, Delta appears close to agreeing with its official creditors committee on several provisions that would secure the creditors' support for Delta's reorganization plan.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070130/BIZ/701300352

U.S. Airways drops Delta bid

WIRE AND STAFF REPORTS

January 31, 2007

 

ATLANTA - Delta Air Lines Inc.’s official creditors committee said this morning it will support Delta’s standalone reorganization plan, prompting US Airways to withdraw its hostile bid to buy Delta.  Delta’s committee said in a statement its decision was reached after a lengthy review of both Delta’s proposal and US Airways’ proposal, which the committee said it rejected. 

 

Delta officials had warned that flight and staffing cuts required under a US Airways-Delta merger would put the future of the Cincinnati/Northern Kentucky International Airport hub in doubt.  Keeping a hub at CVG is considered vital to the region's economy as an estimated $4.5 billion is pumped into the area due to the operation.  Delta alone employs more than 8,000 workers based at the airport.  Local economists credit direct flights to more than 120 destinations for helping attract jobs to the region.

 

In a statement, Tempe, Ariz.-based US Airways said the creditors committee would not meet its demands by the airline’s established deadline of Thursday. The creditors committee is a key player in Delta’s Chapter 11 case, since it must agree to a reorganization plan before it can be approved by U.S. Bankruptcy Court Judge Adlai Hardin.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070131/BIZ/301310032

This seems like good news, and I expect Delta to be a much leaner operation when it exits bankruptcy.  I now wonder what happens with the reported negotiations with Northwest, which could put our hub at greater risk than US Air would have.  I had thought that was a diversion to throw another obstacle at US Air, but I have not heard anything on this recently. 

New details on Comair deal

BY ALEXANDER COOLIDGE | [email protected]

February 21, 2007

 

ERLANGER – Delta Air Lines has promised not to shrink Comair’s fleet of 70-seat jets to less than a dozen, if the bankrupt regional airline’s pilots union ratifies a tentative contract agreement.  The Erlanger-based company’s fleet size has clearly emerged as a bargaining chip, according to new details of the labor deal now being voted on by Comair pilots.

 

More than 250 pilots today crowded into the Erlanger Holiday Inn’s ballroom to hear details of the tentative labor pact designed to complete Comair’s emergence from bankruptcy.  The pilots started voting on the proposed deal that was endorsed by the union leadership over the weekend. The voting ends March 2.

 

Comair would save $40 million over four years under the deal that runs through March 1, 2011, said J.C. Lawson, chairman of the pilots union.  While the cuts don’t sound as severe as the terms Comair was poised to impose with a bankruptcy court judge’s blessing, Lawson said the deal contains real sacrifices.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070221/BIZ01/302210061

From the 1/20/07 Enquirer:

 

Delta evaluates Comair at $1B

BY ALEXANDER COOLIDGE | [email protected]

 

Delta Air Lines estimates that Comair's assets would be worth $920 million to just over $1 billion if both companies were forced to liquidate.  The disclosure was part of an amended reorganization plan by Delta that details how it would satisfy claims against its Erlanger-based subsidiary. The liquidation value is considerably less than the nearly $2.3 billion book value Delta assigns to Comair.

 

Part of the reason for the difference in values is that money owed by Delta, a major portion of Comair's assets, would not be paid in a liquidation. A total of $573 million worth of Delta IOUs to Comair would not get paid because in a liquidation of Delta and Comair those assets would be pooled.  Delta also estimates Comair's nearly $1.2 billion worth of aircraft and other flight equipment wouldn't likely fetch top dollar in liquidation - losing as much as $531 million. The sale of other property and assets could see similar markdowns totaling $189 million.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070120/BIZ01/701200337/1076/BIZ

 

From the AP, 2/7/07:

 

Delta: All objections resolved

BY HARRY R. WEBER | THE ASSOCIATED PRESS

 

ATLANTA - Delta Air Lines Inc., which is operating under bankruptcy protection, has resolved all the objections to the disclosure statement to its reorganization plan, a company lawyer said in court papers Tuesday.  Lawyer Marshall Huebner made the comment in a brief filing ahead of today's bankruptcy court hearing on Delta's request to approve the disclosure statement.  Huebner wrote that details of the objections that have been resolved will be discussed at the hearing in New York.

 

The disclosure statement, which details Delta's operations, must be approved for the Atlanta-based company to be able to begin soliciting votes to approve its reorganization plan, which calls for it to emerge from bankruptcy in the spring as a standalone carrier.  Once voting starts, it will take four to eight weeks.

 

Delta first filed its reorganization plan and disclosure statement Dec. 19.  It has amended it twice.  Delta has estimated the company would be worth $9.4 billion to $12 billion if it emerges from Chapter 11 as a standalone company.  A hostile bid by Tempe, Ariz.-based US Airways Group Inc. to buy Delta Air Lines Inc. was withdrawn after a major group of Delta's creditors said it supported Delta's standalone plan.

 

Delta's second-largest hub is Cincinnati/Northern Kentucky International Airport.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070207/BIZ01/702070386/1076/rss01

 

From the AP, 2/8/07:

 

Delta statement approved

Airline takes big step towards exiting bankruptcy

BY VINNEE TONG | THE ASSOCIATED PRESS

 

NEW YORK - A judge Wednesday approved a disclosure statement that will be sent to creditors along with a Delta Air Lines reorganization plan, a big step forward in the airline's effort to exit bankruptcy.  U.S. Bankruptcy Judge Adlai Hardin's approval allows Delta Air Lines Inc. to begin soliciting votes for its plan to emerge this spring as a stand-alone company worth more than $9.5 billion, Delta lawyer Marshall Huebner said in court.  In court documents, Delta has estimated it could be worth between $9.4 billion and $12 billion. 

 

Huebner said the approval was a "momentous event" as the company worked to emerge from court protection.  Lawyers for the Atlanta-based company said in court filings Tuesday that it had resolved all remaining objections. Eleven objections were filed, and they included the city of Los Angeles, the city and county of Denver, Travelocity and a number of banks. "The completely consensual nature of today's hearing is the result of breathtakingly hard work by many, many people," Huebner said.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070208/BIZ01/702080313/1076/rss01

 

From the 2/9/07 Enquirer:

 

Delta places order for 30 regional jets

BY ALEXANDER COOLIDGE | [email protected]

 

Bankrupt Delta Air Lines announced Thursday it has placed a $1.1 billion order for 30 new 76-seat jets from Bombardier Aerospace.  Delta officials said the new regional aircraft would help it "meet its network and operational needs for 2007 and 2008." The deal includes an option for another 30 jets that could swell the value of the sale to $2.3 billion.

 

The deal is part of a broader plan to redistribute regional jets - some at the expense of Delta Connection carrier Comair Inc.Comair officials said they haven't been told if they are losing more aircraft. The Erlanger-based airline already is seeing its fleet shrink to about 132 jets by spring, down from 168 in the fall. Comair officials had estimated they could lose a total of 42 aircraft in a bidding process.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070209/BIZ01/702090343/1059/rss13

 

From the AP, 2/15/07:

 

Rays of hope for Delta

BY HARRY R. WEBER | THE ASSOCIATED PRESS

 

ATLANTA - The amount of red ink at bankrupt Delta Air Lines Inc. swelled to more than $18 billion since the start of 2001 as the company reported a bigger fourth-quarter loss Wednesday than a year ago, in large part because of restructuring items. 

 

Even so, chief financial officer Ed Bastian said the nation's third-largest carrier is making improvements - he cited a $58 million operating profit for all of 2006 - and is on target to emerge from Chapter 11 as early as April as a stand-alone company.  "I think we're pleased with the progress," Bastian said. "I wouldn't say we're happy, considering we still lost money."

 

The Atlanta-based company, which operates its second-largest hub at the Cincinnati/Northern Kentucky International Airport, said it lost $1.98 billion for the three months ending Dec. 31, compared to a loss of $1.24 billion a year ago.  Quarterly revenue rose 5.3 percent to $4.14 billion from $3.93 billion in the same period a year ago.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070215/BIZ01/702150308/1076/rss01

 

From the 2/22/07 Enquirer:

 

Comair pilots start vote

Size of fleet is key for deal

BY ALEXANDER COOLIDGE | [email protected]

 

ERLANGER - Delta Air Lines has promised not to shrink Comair's fleet of 70-seat jets to less than a dozen if the bankrupt regional airline's pilots union ratifies a tentative contract agreement.  The Erlanger-based company's fleet size has clearly emerged as a bargaining chip, according to new details of the labor deal now being voted on by Comair pilots. Losing planes would mean losing jobs - most of them at the airline's hub at Cincinnati/Northern Kentucky International Airport in Hebron.

 

More than 250 pilots crowded Wednesday into the Erlanger Holiday Inn's ballroom to hear details of the tentative pact designed to complete Comair's emergence from bankruptcy.  The pilots started voting on the deal endorsed by union leadership over the weekend. Voting ends March 2.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070222/BIZ01/702220313/1059/rss13

 

From the 3/2/07 Enquirer:

 

Comair pilots OK cuts

Results end labor dispute

BY ALEXANDER COOLIDGE | [email protected]

 

HEBRON - Pilots at bankrupt Comair have ratified $40 million worth of concessions over the next four years, the pilots union said this morning.  The vote was 69 percent to 31 percent, union officials said before a news conference at the Cincinnati/Northern Kentucky International Airport. Eighty-four percent of the union's 1,600 members participated.

 

The pact ends more than 15 months of labor woes at the Erlanger-based regional airline and move it toward exiting bankruptcy. If the deal had been rejected, Comair was poised to impose court-authorized cuts as early as Sunday while the union pursues appeals in court. 

 

Comair had won a court order from a bankruptcy court forbidding a strike by the pilots.  Under the deal, pilots' base pay would be cut between 7.75 percent and 12.5 percent. Pilots' pay would range from about $21,120 to $95,021, down from $22,500 to $108,600. The contract would expire March 1, 2011.  Comair's parent company, Delta Air Lines, promised not to shrink Comair's fleet of 70-seat jets to fewer than a dozen if the pilots approve thed deal.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070302/BIZ01/703020341/-1/rss

 

From the 3/3/07 Enquirer:

 

Comair pilots vote for pay cuts

BY ALEXANDER COOLIDGE | [email protected]

 

After more than a year of tense negotiations and court challenges, Comair has won labor peace and is poised to exit bankruptcy later this spring.  With almost 69 percent of pilots voting in favor of cutting a deal, the Erlanger-based regional airline won labor concessions worth $40 million for the next four years, union and company officials said Friday. The pact is still subject to court approval.

 

Comair also said Friday that parent Delta Air Lines, which had threatened to take Comair planes away after it collected flying bids last fall, decided that it would not shrink Comair's fleet any further. That means Comair will emerge from bankruptcy with 130 jets, down from 174 at the start of bankruptcy.

 

The contract vote, in which 84 percent of the 1,600 union members participated, ends a standoff where pilots threatened a potential strike until a bankruptcy judge forbade it.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070303/BIZ01/703030347/1076/rss01

 

From the AP, 3/6/07:

 

Delta seeks more time to file reorganization

By Harry R. Weber

Associated Press

 

ATLANTA - Delta Air Lines Inc. asked for permission Monday in U.S. Bankruptcy Court to delay the deadline by which the company may file its reorganization plan exclusively and to solicit acceptance of that plan.  The Atlanta-based airline said the extension - its fourth such request - from April 16 to June 1 is necessary because a confirmation hearing on its Chapter 11 plan is scheduled for April 25, after the current deadline.

 

Delta, the nation's third-largest carrier, is seeking to prevent other competing plans from being filed until after it has a chance to finish soliciting votes on its plan, which calls for the airline to emerge from bankruptcy in the spring as a standalone carrier.  Delta said it is not making the request as a negotiating tactic, and it insisted it is on course to emerge from Chapter 11 on the schedule it set.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070306/BIZ/703060321/1001

 

From the 3/7/07 Enquirer:

 

 

Agreement reached in Delta lease

BY ALEXANDER COOLIDGE | [email protected]

 

Delta, local airport officials and the trustee for bondholders have reached a tentative agreement concerning the bankrupt airline's lease at the Cincinnati/Northern Kentucky International Airport, officials said Tuesday.  The Kenton County Airport Board will meet in a special session to today to discuss the proposed settlement.  No details were released.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070307/BIZ01/703070328/1059/rss13

 

From the AP, 3/8/07:

 

 

Employees will get cash bonus

BY HARRY R. WEBER | THE ASSOCIATED PRESS

 

ATLANTA - Delta Air Lines Inc. plans to issue a lump-sum cash payment to many employees when the airline emerges from bankruptcy this spring, according to a newsletter sent this week to workers from Chief Executive Gerald Grinstein.  The exact amount was not disclosed, but the newsletter said all regular employees, not including officers and directors, will receive a lump-sum payment representing a percentage of their pay.

 

A majority of employees also will receive grants of unrestricted stock in the reorganized Delta.  About 1,000 leaders of the company will be granted ownership stakes in Delta, but those shares will come in different forms, such as restricted stock, stock options and performance stock, and will vest over periods of up to three years, the newsletter said. In addition, some pieces of the management awards will require Delta to meet specific performance goals for them to have any value.

 

Profit-sharing and other reward programs also will be set up, the newsletter said, adding that profit-sharing will pay at least 15 percent of the company's annual pretax profit, which is what's left after subtracting expenses from net revenue.  Grinstein said the company would move to an industry standard pay structure, on par with other carriers, and he said some employees would receive their first pay increases this summer.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070308/BIZ01/703080331/1076/rss01

 

From the 3/10/07 Kentucky Post:

 

Delta slump pinches airport

By Kerry Duke

Post staff reporter

 

When Delta Air Lines cut its service at Cincinnati/Northern Kentucky International Airport by 26 percent a little over a year ago, it cost the airport more than flights.  It cost the airport money.  Federal funds tied to airport activity have steadily declined in 2006 in the wake of bankrupt Delta's decision to downsize operations at Cincinnati/Northern Kentucky, one of the airline's hubs.

 

The number of passengers boarding and disembarking at the airport in 2006 declined by 28.7 percent in 2006 from the previous year. In 2005, there were more than 11 million enplanements (the term used for boarding and disembarking passengers). Last year, the number fell to just over 8 million.  Fewer passengers has meant less revenue from the $4.50 added to each ticket, the "passenger facility charge" that pays for Federal Aviation Administration-approved projects to improve safety, security or capacity, reduce noise and increase competition.  The airport has recently used the fee to help pay for the new north-south runway. With fewer passengers, money from that fee has dropped from $42.4 million in 2005 to $30.8 million in 2006 - a decrease of 27.2 percent.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070310/NEWS02/703100323/1011/RSS02

 

From the AP, 3/14/07:

 

Delta wants top jobs to stay separate

Recruiting chairman for after bankruptcy

By Harry R. Weber

Associated Press

 

ATLANTA - Delta Air Lines Inc.'s chief executive officer and board chairman jobs are held by different people, and the nation's third-largest carrier wants to keep it that way when it emerges from bankruptcy.  The Atlanta-based company's official committee of unsecured creditors asked for court permission Tuesday to pay a search firm to help recruit a non-executive chairman for the board of the reorganized Delta.

 

SSI Inc. is a consultant to the committee and is helping it identify, interview and assess proposed candidates for the new board. Delta's existing directors also are being considered.  Delta's current chief executive, Gerald Grinstein, is a member of Delta's board, but the chairman of the board is John F. Smith Jr., who is not employed as a Delta executive. Many major corporations give the CEO and board chairman jobs to one person, though some in recent years have opted to separate the positions.

 

Grinstein has said he plans to step down as CEO when Delta emerges from Chapter 11 protection, which it could do as early as next month.  A confirmation hearing on Delta's reorganization plan is scheduled for April 25 in U.S. Bankruptcy Court in New York.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070314/BIZ/703140338/1001/RSS04

 

From the AP, 3/17/07:

 

Delta given more time to restructure

Associated Press

 

ATLANTA - A New York federal bankruptcy court judge gave Delta Air Lines Inc. more time to get creditor approval of its reorganization plan before competing plans are allowed to be filed.  Judge Adlai Hardin granted the Atlanta-based company's request to extend its so-called exclusivity period from April 16 to June 1.  The order was dated Thursday and entered Friday.

 

Delta has said the extension - its fourth such request - was necessary because a confirmation hearing on its Chapter 11 plan is scheduled for April 25, after the exclusivity period was set to expire.  Delta, the nation's third-largest carrier, wants to prevent other competing plans from being filed until after it has a chance to finish soliciting votes on its own plan, which calls for the airline to emerge from bankruptcy in the spring as a standalone carrier.

 

More at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070317/BIZ/703170309/1001/RSS04

 

From the AP, 3/20/07:

 

Delta employees to share $480M

39,000 will get cash payouts, equity

BY HARRY R. WEBER | THE ASSOCIATED PRESS

 

ATLANTA - About 39,000 Delta employees will share $480 million in lump-sum payouts and equity in the company when the nation's third-largest carrier emerges from Chapter 11 protection in May, according to material to be disclosed in a bankruptcy court filing today.  The cash payment for non-contract employees is based on 8 percent of their 2006 earnings, or a total of $130 million.  The total equity stake the employees will get equals 3.5 percent of the company, valued at an estimated $350 million.

 

Atlanta-based Delta Air Lines Inc. is giving 1,200 management employees a 2.5 percent stake in the reorganized company, valued at $240 million.  Based on the figures provided by Delta, the average total lump sum and equity payout for non-contract employees would be $12,000, while the average equity payout for managers would be $200,000. Delta cautioned that the actual payouts for non-contract employees and managers will vary.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070320/BIZ01/703200356/1076/rss01

 

From the 3/21/07 Enquirer:

 

Payouts help area's economy

Confidence buoyed

BY ALEXANDER COOLIDGE | [email protected]

 

A one-time payout to Delta Air Lines employees could pump $30 million or more into the local economy. But the real shot in the arm could come after the region's dominant carrier emerges from bankruptcy this spring. George Vredeveld, director of the Economics Center for Education and Research at the University of Cincinnati, said the windfall for embattled Delta employees may have a muted benefit for the local economy, as workers rebuild their savings and pay off debt as opposed to running out and buying a new car.

 

Still, he said with the nation's third-largest airline regaining its financial footing, a return to normalcy could revive optimism and spending habits of Delta workers. "People spend their money based on how they see their long-term financial situation," he said. "In that sense, current pay could be less important than the expectations for the future."

 

On Tuesday, Delta outlined a $480 million payout plan for its 39,000 non-union employees nationwide to occur shortly after emerging from Chapter 11, which is anticipated to happen in May. Delta employs 2,400 workers at its hub at Cincinnati/Northern Kentucky International Airport in Hebron, excluding unionized pilots and Comair employees based there.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070321/BIZ01/703210343/1076/BIZ

 

From the 3/24/07 Cincinnati Post:

 

Comair's union employees may divvy up $68M

By Greg Paeth

Post staff reporter

 

After some 15 months of coping with salary cuts, Comair employees are in line to receive raises, lump sum bonuses and cuts in health-care costs as the regional carrier prepares to emerge from bankruptcy in the next six weeks.  Unionized employees - pilots, flight attendants and mechanics - will have about $68 million to split up among themselves if Comair and its parent, Delta Air Lines, get U.S. Bankruptcy Court approval to conclude a Chapter 11 process that began in September 2005.

 

No figure on the total dollar amount that will be distributed to non-union employees was available Friday, Comair spokeswoman Kate Marx said.  During meetings Friday, Comair informed its employees about the payments they can expect.  Earlier in the week, Delta had told its 39,000 employees that the company planned to distribute about $480 million in cash and stock so that its employees "could share in the company's future success."

 

That plan excluded Comair employees, though, who now will receive their own incentives.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070324/BIZ/703240332/1001/RSS04

 

Delta may sell Comair

WIRE AND STAFF REPORTS

March 27, 2007

 

ATLANTA – Delta Air Lines Inc. will reexamine whether to sell Erlanger-based Comair once the companies emerge from bankruptcy April 30.  While the nation’s third biggest carrier did not say in documents prepared for an investor conference today what assets it plans to sell, Chief Financial Officer Ed Bastian suggested that Erlanger-based Comair could be a target.

 

“We will, once we’re out of bankruptcy, look at whether owning that business makes a lot of sense,” Bastian said at the conference.  He didn’t elaborate on Delta’s future plans for the regional carrier that provides connecting service for the airline.

 

Since Delta and Comair entered bankruptcy in September 2005, Delta executives have signaled at times an interest in selling Comair. At other times, they flatly stated the Erlanger carrier wouldn't be sold - at least until it was profitable.  After more than a year of tense labor negotiations to reduce its costs and court challenges, Comair won labor peace this winter. After concluding a deal with its pilots, Comair said that Delta - which had threatened to take Comair planes away after it collected flying bids last fall - decided that it would not shrink Comair's fleet any further.  Delta paid $2.3 billion for Comair in 2000.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070327/BIZ01/303270017/1076/BIZ

Delta again hints at Comair sale

March 28, 2007 | CINCINNATI POST

 

ATLANTA - Delta Air Lines Inc. has again raised the possibility it could shed feeder carrier Comair as it said it expects to emerge from bankruptcy protection April 30 with an eye on improving customer service and selling assets to build shareholder value.

 

While the region's dominant airline did not say in documents prepared for an investor conference what assets it plans to sell, Chief Financial Officer Ed Bastian suggested Tuesday that Delta subsidiary Comair could be a target.

 

During a teleconference later with reporters, Bastian elaborated that Delta's effort to maximize returns for shareholders may mean "spinning off certain assets, such as Comair."  The sale of Erlanger, Ky.-based Comair has been speculated about throughout the bankruptcy period, which began in September of 2005.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070328/NEWS01/703280372

Delta posts February profit

March 29, 2007 | CINCINNATI BUSINESS COURIER

 

ATLANTA - Delta Air Lines Inc. has reported a profit for February, after excluding reorganization charges.  The bankrupt Atlanta-based airline (Pink Sheets: DALRQ) posted net income of $55 million in February, compared with a net loss of $209 million in February 2006. Excluding reorganization items, Delta's net loss was $43 million for February 2007, a $95 million improvement compared with February 2006.

 

As of Feb. 28, Delta had $3.7 billion of cash, cash equivalents and short-term investments, of which $2.7 billion was unrestricted.  "February's results demonstrate the significant momentum we have created with our restructuring," said Edward Bastian, Delta chief financial officer. "We look forward to emerging from bankruptcy in a matter of weeks, having transformed our company into a strong, healthy competitor in this tough industry."

 

Delta operates a hub from the Cincinnati/Northern Kentucky International Airport.

 

More at http://cincinnati.bizjournals.com/cincinnati/stories/2007/03/26/daily40.html

From the AP, 4/10/07:

 

Delta's proposal draws objection

Governments fear unpaid tax bills

BY HARRY R. WEBER | THE ASSOCIATED PRESS

 

ATLANTA - Several municipalities have objected to Delta Air Lines Inc.'s reorganization plan out of concern that their tax claims might not be paid in full.  Monday was the deadline to file objections to the plan, although some parties might be allowed to file objections later. Monday also was the deadline for creditors to vote on whether to accept or reject the plan.

 

The Atlanta-based airline, which operates its second-largest hub at the Cincinnati/Northern Kentucky International Airport, expected some objections to the plan but has said it thinks that the plan will ultimately be approved by creditors and the court.  Chief Financial Officer Ed Bastian said last month that there are no "show stoppers" that Delta is aware of.

 

Under the settlement, Delta - which owed bondholders $413 million for bonds issued by the airport in 1992 to pay for construction of Terminal 3, Concourse B and other property at CVG - agreed instead to pay $85 million over 10 years and give bondholders a $260 million unsecured claim in the bankruptcy.  Separately, Delta agreed to continue to lease Terminal 3, Hub A and Concourse B from the airport until Dec. 31, 2020.  During the same period, the airline will also lease a fueling area and continue to pay fees to cover maintenance and operating costs.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070410/BIZ/704100331/1076/rss01

 

From the AP, 4/12/07:

 

 

Delta may shuffle regional lineup

THE ASSOCIATED PRESS

 

ATLANTA - Delta Air Lines Inc., which has indicated it might sell feeder carrier Comair after it exits bankruptcy protection, could make changes to the lineup of regional carriers that handle its connecting flights in the interest of quality, Chief Executive Gerald Grinstein said Wednesday. "If we're not getting the right service, we'll make the substitutions," Grinstein said.

 

Grinstein's comments follow statements by Delta executives last month that the Atlanta-based airline could sell or spin off Erlanger-based Comair after Delta emerges from bankruptcy. They also come as Delta renews its push to improve customer service.

 

Comair, a subsidiary of Delta, and Atlantic Southeast Airlines were ranked near the bottom of a recent airline quality survey on lost baggage and flight delays. Delta sold ASA to SkyWest for $425 million in 2005 but still uses it for connecting service.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070412/BIZ01/704120332/1076/rss01

 

From the AP, 4/14/07:

 

 

Who's next for Delta?

New board will select a new CEO

By Harry R. Weber

Associated Press

 

ATLANTA - The board of directors that will govern Delta Air Lines Inc. after it exits bankruptcy in two weeks faces a big decision right out of the gate - who to pick to be the company's next chief executive officer.  An insider or an outsider? If someone from inside, which leading candidate - Chief Financial Officer Ed Bastian or Chief Operating Officer James Whitehurst?

 

Industry observers say the board should take its time finding a CEO who has a strong grasp of the airline industry and who will be proactive in moving the nation's third-largest carrier forward by anticipating changes in the marketplace. "You have to make sure the person has the mental bandwidth to handle those complexities," said Gerald Kraines, head of Jaffrey, N.H.-based executive development firm The Levinson Institute.

 

Outgoing CEO Gerald Grinstein, who plans to step down once the board chooses his replacement, told the Associated Press that he wouldn't put a timetable for a decision on his successor. "It's better to be right than to be fast," said Grinstein, who has made no secret of his desire that the next CEO come from inside Delta, which has its second largest U.S. hub at Cincinnati/Northern Kentucky International Airport.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070414/BIZ/704140307/1001/RSS04

 

Delta, Comair creditors OK plans

April 16, 2007 | ASSOCIATED PRESS

 

ATLANTA – Delta Air Lines Inc. said today unofficial voting results show its reorganization plan has received enough creditor support to be approved, paving the way for it to emerge from bankruptcy protection on April 30.  The Atlanta-based airline said in a statement that the results show that more than 95 percent of ballots cast were in favor of the plan.  Creditors also voted in favor of a reorganization plan for Delta’s wholly owned regional airline subsidiary Comair, Delta said.

 

The final voting results for both plans will be filed later this week with the U.S. Bankruptcy Court in New York.  A confirmation hearing is scheduled for April 25, and Delta has said it expected to emerge from Chapter 11 on April 30.  Typically, in each class of creditors, Delta’s plan would have to be approved by holders of two-thirds of the claims and a majority of the number of individual creditors for it to pass.

 

Delta has estimated it will be worth $9.4 billion to $12 billion when it emerges from Chapter 11.  Delta, the nation’s third-largest carrier, filed for bankruptcy protection in September 2005.

From the 4/23/07 Enquirer:

 

 

Delta narrows 1Q loss

THE ENQUIRER

 

Delta Air Lines Inc., a week away from exiting bankruptcy, reported Monday that it narrowed its loss in the first quarter on an 11.4 percent rise in sales.

 

The carrier, which maintains a hub at Cincinnati/Northern Kentucky International airport, lost $6 million in the latest quarter when bankruptcy and other special items and costs are excluded.

 

Overall, the nation's third-largest carrier said it lost $130 million in the three months ended March 31, compared to a loss of $2.07 billion for the same period a year ago. The year-ago loss included $2 million in dividends that accrued for preferred shareholders.

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070423/BIZ01/304230025/1076/rss01

 

Link includes photos.  From the AP, 4/24/07:

 

Getting out of the hole

Delta set to emerge from bankruptcy; sales on rise

THE ASSOCIATED PRESS

 

Delta Air Lines Inc., a week away from leaving bankruptcy, reported Monday that it narrowed its loss in the first quarter on an 11.4 percent rise in sales.  The nation's third-largest carrier said it lost $130 million in the three months ending March 31, compared to a loss of $2.07 billion for the same period a year ago.  The year-ago loss included $2 million in dividends that accrued for preferred shareholders.

 

Excluding reorganization and special items, Delta said it lost $6 million in the latest quarter.  Delta's balance sheet did not list per-share figures.  Revenue in the first quarter rose to $4.14 billion, compared to $3.72 billion for the same period a year ago.  As of March 31, Delta had $2.9 billion in unrestricted cash, cash equivalents and short-term investments.

 

Atlanta-based Delta, which filed for bankruptcy protection on Sept. 14, 2005, is expected to emerge from Chapter 11 next Monday.  Its stock will be canceled, and it will issue new shares to pay creditors and generate new investors.  A confirmation hearing on its reorganization plan is scheduled for Wednesday in U.S. Bankruptcy Court in New York.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070424/BIZ01/704240357/1076/BIZ

 

From the 4/26/07 Enquirer:

 

 

Delta recovery approved

Bankruptcy court clears Delta, Comair

WIRE AND STAFF REPORTS

 

NEW YORK - A federal bankruptcy judge Wednesday approved plans by Delta Air Lines and its Comair subsidiary to exit bankruptcy, after the nation's third-largest airline spent nearly 20 months in a wrenching reorganization that cut 6,000 jobs and slashed $3 billion in costs.  Atlanta-based Delta expects to emerge from court protection Monday.

 

It estimates it will be worth $9.4 billion to $12 billion, after Delta reduced labor costs, restructured its fleet and terminated a pilots' pension plan.  More than 95 percent of creditors voted to endorse the plan for Delta to leave bankruptcy as a stand-alone carrier.

 

Delta employs 47,000 now. It had 53,000 employees when it entered bankruptcy.  Before the bankruptcy, Comair had 7,050 employees; it now has 6,600. It had 174 planes with 1,160 daily flights before bankruptcy; now it has 130 planes and 724 daily flights.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070426/BIZ01/704260324/1076/rss01

 

Delta emerges from the clouds

After bumpy times, harsh choices, local hub flying steady - for now

BY LUCY MAY | [email protected]

April 27, 2007

 

ATLANTA - When Delta Air Lines filed for bankruptcy protection in September 2005, local business leaders couldn't help but worry.  Before then, Delta boasted 561 daily departures from the local airport to 137 destinations.  Cincinnati promoted air service unrivaled by surrounding markets. And after years of high fares for the convenience of having Delta's second-largest hub, traveling from the Cincinnati/Northern Kentucky International Airport had gotten cheaper thanks to Delta's SimpliFares. Local travelers were returning in droves.

 

But then came Ch. 11 bankruptcy, designed to help Delta weather a crushing debt burden, rising costs and billions in losses since the terrorist attacks of 2001. Despite the hundreds of flights, bustling concourses and long lines at security, the local hub was losing money.  Insiders knew that as the airline began the long, difficult job of restructuring, the CVG hub was at risk.  If Delta eliminated the hub completely, it would mean losing the nationwide and international air service, and a corporate crown jewel that helps contribute more than $4.5 billion to the region's economy each year.

 

But as Delta executives examined their bases of operations across the country, they decided they needed Cincinnati.  As the Atlanta-based carrier's only Midwestern hub, the airport was critical for Delta to remain a national carrier.  The question became how to make this hub profitable. And the answer, while painful, has helped ensure the operation's long-term viability - at least for as long as Delta remains an independent airline.  As Delta emerges from bankruptcy April 30, its future here likely will be decided by how well its restructuring works.

Now what's ahead for Comair?

As Delta emerges from bankruptcy, industry analysts wonder

BY ALEXANDER COOLIDGE | [email protected]

April 29, 2007

 

ERLANGER - Gary Legge, a manager in Comair's tower at the Cincinnati/Northern Kentucky International Airport, says a lot has changed in his 24 years since joining the regional airline as a part-time lineman in 1982.  Legge, a 49-year-old Covington resident, fondly recalls a time when the scrappy carrier grew by leaps and bounds. He said the key to getting by in the past 19 months of Comair's bankruptcy has been focusing on the task at hand. His belief that Comair was a critical Delta asset reassured him that his job was safe.

 

Comair and its parent company, Delta Air Lines, are set to emerge from bankruptcy this week after a tumultuous stay in Chapter 11. While airline officials say they look forward to competing, analysts say it's unclear what the future holds for the regional airline as its parent is emphasizing international flying for growth.  In conference calls last week, Delta executives emphasized the Atlanta-based airline's plans to expand its international flying but declined to elaborate on Comair's future other than to say it was "bright." Analysts say Delta will keep Comair as a feeder airline but may sell or spin it off.

Delta plans a new image

April 30, 2007 | ASSOCIATED PRESS

 

ATLANTA - Delta Air Lines Inc. has undergone a major facelift during more than a year and a half in bankruptcy, but other changes are on the way as the nation’s No. 3 carrier and its Erlagner-based Comair subsidiary exit Chapter 11 today.  Among other things, it has set aside $10 million for a rebranding effort, the company’s chief bankruptcy lawyer, Marshall Huebner, said in court recently. 

 

“Additional investments in Delta’s image will be unveiled” at a news conference at the company’s Atlanta headquarters a few hours after the airline exits bankruptcy protection, spokeswoman Betsy Talton said. She declined to give details ahead of the announcement.

 

Repainting its planes is something that could help Delta with its brand image, but would take time to complete for a fleet consisting of several hundred aircraft, said Doug Abbey, partner in the aviation consulting firm The Velocity Group.  “I think it’s appropriate because this is clearly a new Delta, but in and of themselves, these things tend to be a very long-term project,” he said.  A new advertising campaign also could be in Delta’s future, Abbey said.

Link contains photos.  From the 5/1/07 Enquirer:

 

Delta's new dawn

Airline flying solo, but local impact continues

THE ENQUIRER

 

When Delta Air Lines and its Erlanger-based subsidiary Comair left bankruptcy Monday, they emerged with fewer employees, lower labor and pension costs and fewer domestic routes (but more international ones).  Here's a look at how the changes at Delta and Comair affected four key areas.

 

TRAVEL: FLIGHTS DOWN, FARES UP - Since Delta and Comair entered bankruptcy, the airlines have cut their flight schedule from the Cincinnati/Northern Kentucky International Airport by roughly 26 percent.  Fares here have risen sharply, with CVG reclaiming its position as one of the most expensive airports to fly to or from, according to government statistics.

 

EMPLOYEES: MANY GONE - Before bankruptcy, Delta had 53,000 employees operating 4,835 daily flights on 522 jets. Today, it has 47,000 employees operating 4,488 daily flights on 440 jets.  Comair had 7,050 employees on Sept. 14, 2005, when both airlines entered bankruptcy. It operated 1,160 daily flights on 174 jets. Today, Comair has 6,600 employees, who operate 724 daily flights on 130 jets. 

 

ECONOMY: CUTS HURT - Cost cutting saved $3 billion at Delta and $90 million at Comair.  When the cuts included jobs or wages, the impact on the economy was heavy.  For example, pay cuts imposed at Delta the year before the airline went into bankruptcy took about $90 million out of the Greater Cincinnati and Northern Kentucky economy.

 

THE FUTURE: SPINOFF IDEAS - Delta officials say they'll start examining whether to sell or spin off Comair, a move that could potentially affect the Erlanger-based carrier's office employees.  The parent airline says it has no plans to make major additional cuts to flights or employees at CVG.  An acquisition of Delta seems unlikely, now that it has emerged from bankruptcy and creditors have less power.

 

More at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070501/BIZ01/705010348/1076/rss01

From the AP, 5/3/07:

 

 

Delta revises projected pre-tax profit figure

THE ASSOCIATED PRESS

 

ATLANTA - Delta Air Lines Inc., which emerged from bankruptcy earlier this week, said Wednesday in a regulatory filing that its projected pretax profit for the year will be reduced by $145 million because of fresh-start accounting.

 

The Atlanta-based airline had projected in March that it would earn a pretax profit for 2007, excluding special and reorganization items, of $816 million.

 

That figure has now been revised to $671 million, based on how Delta will report its results as a new entity since exiting bankruptcy Monday.

 

Delta's new stock will begin trading publicly on the New York Stock Exchange today.

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070503/BIZ01/705030329/1076/BIZ

---

From the 5/3/07 Enquirer:

 

 

Delta traffic up, Comair down

BY ALEXANDER COOLIDGE | ENQUIRER STAFF WRITER

 

Delta Air Lines reported its traffic in April rose 4.2 percent compared with the same month last year, while its Erlanger-based subsidiary saw a 10.5 percent drop.

 

Delta's seating capacity was down slightly by 0.7 percent, while Comair's was reduced 14.8 percent.

 

Delta planes were 81.5 percent full in April, up from 77.6 percent a year ago.

 

Comair jets were 77.5 percent full, compared with 73.7 percent a year ago.

 

http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070503/BIZ01/705030330/1076/BIZ

 

From the 5/5/07 Kentucky Post:

 

Delta uncommitted

CFO Bastian says Comair relationship still being studied

By Greg Paeth, Post staff reporter

 

The man considered to be one of the favorites to succeed Gerald Grinstein later this year as the next CEO of Delta Air Lines reiterated the company's commitment to its No. 2 hub city Friday.  But chief financial officer Ed Bastian stopped far short of making any similar pledge about Delta's long-term relationship with Comair, the regional carrier that is headquartered in Erlanger.

 

As both Bastian and Grinstein have said before, Delta is still studying whether owning Comair, which it purchased in 2000, is the right strategy for the country's third largest airline.  "We will look - as we've said now that we're out of bankruptcy - as to the right ownership position," Bastian said Friday at the Cincinnati/Northern Kentucky International Airport, where Delta employees, government officials and business leaders helped celebrate the company's fifth day after completing the Chapter 11 bankruptcy process.

 

Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20070505/NEWS02/705050328/1011/RSS02

 

would a comair spin off lead to more competition or at least less of a delta monopoly or would things stay buisness as usual?

I would find it very hard to believe that things would stay business as usual.  Other than that, it could be anything...it will all be decided upon by the free market!  :wink: :laugh:

Link contains photos.  From the 5/25/07 Enquirer:

 

Comair going first class

Airline gets bigger jets, will offer elite-level seating

BY ALEXANDER COOLIDGE | [email protected]

 

ERLANGER - Comair is getting 14 bigger regional jets.  Parent company Delta Air Lines said Thursday it has negotiated a deal with Canadian aircraft maker Bombardier to swap out 14 10-year-old, 50-seat CRJ-100s and upgrade them with 14 CRJ-900 regional jets with 76 seats.  The new aircraft feature 12 seats in a first-class section, the first time the 30-year-old airline has offered the elite seating.

 

While the new aircraft won't boost the carrier's fleet of 130, it will add 75 new flight attendant jobs.  Pilot and support staffing levels will stay the same.  Delta executives said the upgrade wouldn't factor into whether it ultimately sells the regional airline.

 

Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070525/BIZ01/705250353/1059/rss13

 

Airbus or Boeing?

Delta weighs options for replacing fleet of 767s

BY BERNARD MCGHEE | ASSOCIATED PRESS

June 20, 2007

 

ATLANTA - Delta Air Lines Inc. will likely decide by the end of the year on whether to go with Boeing Co. or European rival Airbus to replace its fleet of Boeing 767 jets, its chief operating officer said Tuesday.  Speaking from the weeklong Paris Air Show in Le Bourget, France, Jim Whitehurst said the Atlanta-based airline was deciding between Boeing's new 787 Dreamliner and the Airbus A350.  "We're not placing an order," Whitehurst said. "It's in the assessment phase."

 

Whitehurst did not give specific numbers but said the order would be for "well over 100" new planes.  Whitehurst spoke with the Associated Press after the Wall Street Journal reported he said Delta might order as many as 125 of Boeing's 787 Dreamliners by the end of the year.  Whitehurst told the Journal the order is still being negotiated while Delta considers seat configurations and how much the planes would cost to operate and maintain.

 

The move to replace its fleet of 104 767s comes as Delta looks to expand its international service.  Since emerging from bankruptcy on April 30, the airline has outlined plans to cut domestic capacity and increase internationally.  The airline said most of its international growth would be based in Africa, the Middle East and Asia, and an air route to China would be key to the plan.

Cincinnati fares lead U.S. airports

 

At $500-plus per round trip, recent average airfares at the Cincinnati/Northern Kentucky International Airport were the highest in the nation among the top 100 airports, according to the latest government statistics. 

 

While the average domestic airfare in the first three months of 2007 was $380 -- down 0.6 percent from the same quarter in 2006 -- the average fare at the Cincinnati/Northern Kentucky airport was $531, according to a report released Wednesday by the U.S. Department of Transportation's Bureau of Transportation Statistics.

 

Fares at the Hebron, Ky. airport, across the Ohio River from Cincinnati, rose 14.7 percent from $464 in the same period a year ago -- the highest increase in ticket prices among the top 100 airports, the bureau said. 

 

More at http://www.enquirer.com

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