KarlB737
Topic Author
Posts: 2636
Joined: Sat Mar 20, 2004 9:51 pm

Comair Flight Attendants Union Votes To OK Strike

Sat Mar 25, 2006 10:20 pm

Courtesy: The Cincinnati Post

Comair Flight Attendants Union Votes To OK Strike

http://news.cincypost.com/apps/pbcs....rticle?AID=/20060325/BIZ/603250330
 
cainanuk
Posts: 455
Joined: Wed Apr 24, 2002 4:05 pm

RE: Comair Flight Attendants Union Votes To OK Strike

Sat Mar 25, 2006 11:00 pm

Well, that's yet another nail in the coffin. I knew that the USA would lose one major... I didn't expect it to be Delta though.
Cainan Cornelius
 
skibum9
Posts: 862
Joined: Sun Nov 04, 2001 1:13 pm

RE: Comair Flight Attendants Union Votes To OK Strike

Sat Mar 25, 2006 11:30 pm

Quoting CainanUK (Reply 1):
Well, that's yet another nail in the coffin. I knew that the USA would lose one major... I didn't expect it to be Delta though.

I wouldn't think that this would put the nail in the coffin for DL, maybe for OH, but not DL. I would think that if the OH FAs strike, DL would just liquidate OH. DL owns the aircraft so they would sell what they could and transfer the flying to one of the other DL Connection carriers. More than likely it would probably be the end of CVG as a hub.
Tailwinds!!!
 
FlyPNS1
Posts: 5288
Joined: Wed Dec 01, 1999 7:12 am

RE: Comair Flight Attendants Union Votes To OK Strike

Sun Mar 26, 2006 1:15 am

Quoting Skibum9 (Reply 2):
I wouldn't think that this would put the nail in the coffin for DL, maybe for OH, but not DL. I would think that if the OH FAs strike, DL would just liquidate OH. DL owns the aircraft so they would sell what they could and transfer the flying to one of the other DL Connection carriers. More than likely it would probably be the end of CVG as a hub

The problem is that a strike at Comair would take a huge chunk of revenue away from Delta. Many of Comair's customers connect to DL mainline, so without Comair those flights are toast.

During the Comair pilot's strike, it was estimated to cost Delta $600 million dollars. At that time, DL had enough cash to sustain that type of hit. Today is a different story.
 
skibum9
Posts: 862
Joined: Sun Nov 04, 2001 1:13 pm

RE: Comair Flight Attendants Union Votes To OK Strike

Sun Mar 26, 2006 1:32 am

Quoting FlyPNS1 (Reply 3):
The problem is that a strike at Comair would take a huge chunk of revenue away from Delta. Many of Comair's customers connect to DL mainline, so without Comair those flights are toast.

During the Comair pilot's strike, it was estimated to cost Delta $600 million dollars. At that time, DL had enough cash to sustain that type of hit. Today is a different story.

I agree that it would harm DL's revenue and that is why I think that it would mean the end of CVG as a hub. DL mainline at CVG is less than 100 flights now. Most of the cities served by OH into CVG also have service into ATL. And all of the cities served by DL mainline have service out of ATL. So I think that if OH goes out, CVG will cease to exist as a hub, the traffic from the feeders would be picked up by service into ATL, and DL would offset some of the revenue loss by liquidating the OH assets, or what they can (not a big market for the CRJ 40 and 50 seaters, but could easily sell the 70 seaters, if they actually own them and they aren't collateralized). Plus, given the cost structures at OH, one has to wonder if OH is even profitable. If not, shuttering the doors may cause a reduction in the revenue stream, but it may in fact increase the margins on the remaining DL revenue as the flying is shifted to other areas that are more cost efficient. Plus, closing down CVG would cut significant costs for DL, allowing them to focus on ATL, SLC and JFK. While revenue is important, margin is of greater importance as that is your profitability.
Tailwinds!!!
 
Cubsrule
Posts: 11659
Joined: Sat May 15, 2004 12:13 pm

RE: Comair Flight Attendants Union Votes To OK Strike

Sun Mar 26, 2006 2:28 am

Yawn... It's a vote to authorize union leadership to call a strike. The NW pilots did the same thing. It's a bargaining tool, nothing more. No strike is imminent.
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