CINCINNATI (AP) - Approval of a tentative labor deal by Comair pilots would put the Delta Air Lines Inc. subsidiary a giant step closer toward emerging from bankruptcy. Analysts say even if that happens, the regional airline faces challenges competing for Delta business.
'Comair's focus will have to be on keeping its costs competitive in a very competitive environment,' Doug Abbey, a partner in the aviation consulting firm The Velocity Group, said Thursday.
After start-and-stop talks that concluded only after Comair announced it was going to impose concessions on the pilots, voting by the 1,500 pilots was to conclude Friday morning with a final tally expected by midday, said Paul Denke, a spokesman for the Air Line Pilots Association representing the pilots.
Comair, based near Cincinnati in Erlanger, Ky., filed for Chapter 11 bankruptcy protection in September 2005 along with its Atlanta-based parent. The regional airline has been working since then to achieve $70 million annually in cost savings to complete its restructuring plan.
It previously reached deals on concessions with its mechanics and its flight attendants, which were also arduous processes.
Comair spokeswoman Kate Marx said ratification of the agreement would allow Comair to achieve the cost savings needed to complete its restructuring, but she declined to discuss in detail what was next for Comair pending the outcome.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Copyright 2005 LexisNexis, a division of Reed Elsevier Inc. All rights reserved.
Terms and Conditions | Privacy Policy
News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.
