Originally Posted by
Boomer
Shawn Anderson, Delta’s Vice President of Delta Connection, gave this testimony in his November 1, 2006 trial Declaration:
Moreover, Delta may place into service additional large 70-seat regional jets–and even larger RJs with up to 76 seats. Delta would have to consider placing these new aircraft at Comair’s competitors and “grow” the competitors instead of placing such valuable assets at Comair where they would produce less profit.
. . . If Comair does not obtain the labor cost reductions it seeks, then its cost structure will not be competitive with the other Delta Connection carriers. In this industry, and at this time, having an uncompetitive cost structure will mean that Comair will have no opportunity for growth, and, indeed, will mean that Comair cannot survive as a viable regional airline. Simply put, unless Comair can reduce its controllable costs to competitive levels, it does not make business sense to continue Comair flying for Delta.
. . . If Comair can restructure itself so that its controllable costs are competitive, Delta should be able to increase, rather than decrease, the flying it contracts to Comair. This would mean that Comair would have an opportunity to grow, rather than shrink. With growth would come new job opportunities, and reduced unit costs, as more junior employees are added, and reduced unit overhead costs as the same facilities and overhead could be used to perform more flying.
. . . I am familiar with Comair’s restructuring plans, including its plan to reduce its controllable costs–both labor and non-labor. If Comair is able to restructure in accordance with its restructuring plans, I believe that Comair will be able to perform Delta Connection flying at a competitive price. Accordingly, I believe that the labor cost reductions in Comair’s business plan are necessary–indeed, essential–to Comair’s successful restructuring.
Originally Posted by
Boomer
Forget the "No Soap" stickers. I want this on a bag sticker:
Shawn Anderson, Delta’s Vice President of Delta Connection,
gave this testimony in his November 1, 2006 trial Declaration:
"If Comair is able to restructure in accordance with its restructuring plans,
I believe that Comair will be able to perform Delta Connection flying at a competitive price."
Next time Delta sends us a new CEO with the line "You guys aren't competitive" I'll run my bag over his face and he can get a good look at his boss's sworn testimony that we are, indeed, competitive.
Looks like we got the new CEO and what's his tune? We cost 20% more than the other guys. I guess we got real expensive when Vage was here, or maybe the other guys got real cheap with their new contracts (Freedom, ASA) and raises (SKW, XJ).
Well, ng4 can bite my root.
Originally Posted by
andy171773
Heh "fucus 2009"
"Get controllable block hour costs in line with peers"
Sounds like paycuts to me
That will get voted right in, I'm sure. Well, maybe if they promised us a percentage of the DCI 2009 growth aircraft?
I love how our new "focus on people" means we'll "Ease transitions for those leaving the company"
I'm glad the plan is called Focus 2009, not Focus early January 2009. At least we have a solid plan that won't change for a year (or a new CEO, whichever happens first). Remember, with vage our plan changed every 17 days.