Comair updates?
11-04-2009, 04:54 PM
Gets Weekends Off
Joined APC: Nov 2005
Posts: 2,513
Originally Posted by skywatch
My facts are spot on. Your premise is fatally flawed.
the only reason Comair shows a "profit" is because all of the arrangements for regional lift, both wholly owned and not wholly owned, are what is called cost plus - As long as performance targets are hit, Comair will make cost plus 2% or 4% or 10% or whatever...as long as targets are hit, Comair (and any other regional) cannot lose money - they will always show a "profit" on their books. The difference is, Delta may not be able to cover the "cost +" with the revenue from the tickets. So Delta's goal is to find the CHEAPEST guy to do the flying.
If the deal is cost + 10%, for example, and it costs Comair $1000 to fly the flight, then Delta pays them $1100. If Delta can only make $900 on the tickets though, in the end Delta lost $200 operating the flight - but Comair will show a "profit" of $100. Net loss to the Delta Corporate familiy - $100 (Comair +100, Delta loss -200).
Now take the same scenario but lets assume it is Compass and they can fly the flight for $800. Delta will pay them the same cost + 10%, or $880 to fly the flight. If Delta collects the same $900 for tickets, then Delta makes $20 on the flight and Compass collects $80 of "profit". Net gain to the Delta Corporate family - $20 (Delta +$20)
There is nothing inaccurate about my facts - this is the way it works, so like any business owner Delta really does not care if it is done in house or outsourced, as long as it is profitable.
Does that make sense? That is why the real goal is to find whoever can do it the cheapest.
the only reason Comair shows a "profit" is because all of the arrangements for regional lift, both wholly owned and not wholly owned, are what is called cost plus - As long as performance targets are hit, Comair will make cost plus 2% or 4% or 10% or whatever...as long as targets are hit, Comair (and any other regional) cannot lose money - they will always show a "profit" on their books. The difference is, Delta may not be able to cover the "cost +" with the revenue from the tickets. So Delta's goal is to find the CHEAPEST guy to do the flying.
If the deal is cost + 10%, for example, and it costs Comair $1000 to fly the flight, then Delta pays them $1100. If Delta can only make $900 on the tickets though, in the end Delta lost $200 operating the flight - but Comair will show a "profit" of $100. Net loss to the Delta Corporate familiy - $100 (Comair +100, Delta loss -200).
Now take the same scenario but lets assume it is Compass and they can fly the flight for $800. Delta will pay them the same cost + 10%, or $880 to fly the flight. If Delta collects the same $900 for tickets, then Delta makes $20 on the flight and Compass collects $80 of "profit". Net gain to the Delta Corporate family - $20 (Delta +$20)
There is nothing inaccurate about my facts - this is the way it works, so like any business owner Delta really does not care if it is done in house or outsourced, as long as it is profitable.
Does that make sense? That is why the real goal is to find whoever can do it the cheapest.
Exactly what ive been trying to tell people for years!! The whole comair makes money thing is bogus. It may have been true in the past when comair was a seperate company but not now.
It just a way for delta to hide money. They pay comair a 160 million dollar profit and effictivley just put money in another account.
11-04-2009, 05:13 PM
Gets Everyday Off
Joined APC: Dec 2007
Position: Furlough Specialist
Posts: 285
Originally Posted by skywatch
My facts are spot on. Your premise is fatally flawed.
the only reason Comair shows a "profit" is because all of the arrangements for regional lift, both wholly owned and not wholly owned, are what is called cost plus - As long as performance targets are hit, Comair will make cost plus 2% or 4% or 10% or whatever...as long as targets are hit, Comair (and any other regional) cannot lose money - they will always show a "profit" on their books. The difference is, Delta may not be able to cover the "cost +" with the revenue from the tickets. So Delta's goal is to find the CHEAPEST guy to do the flying.
If the deal is cost + 10%, for example, and it costs Comair $1000 to fly the flight, then Delta pays them $1100. If Delta can only make $900 on the tickets though, in the end Delta lost $200 operating the flight - but Comair will show a "profit" of $100. Net loss to the Delta Corporate familiy - $100 (Comair +100, Delta loss -200).
Now take the same scenario but lets assume it is Compass and they can fly the flight for $800. Delta will pay them the same cost + 10%, or $880 to fly the flight. If Delta collects the same $900 for tickets, then Delta makes $20 on the flight and Compass collects $80 of "profit". Net gain to the Delta Corporate family - $20 (Delta +$20)
There is nothing inaccurate about my facts - this is the way it works, so like any business owner Delta really does not care if it is done in house or outsourced, as long as it is profitable.
Does that make sense? That is why the real goal is to find whoever can do it the cheapest.
the only reason Comair shows a "profit" is because all of the arrangements for regional lift, both wholly owned and not wholly owned, are what is called cost plus - As long as performance targets are hit, Comair will make cost plus 2% or 4% or 10% or whatever...as long as targets are hit, Comair (and any other regional) cannot lose money - they will always show a "profit" on their books. The difference is, Delta may not be able to cover the "cost +" with the revenue from the tickets. So Delta's goal is to find the CHEAPEST guy to do the flying.
If the deal is cost + 10%, for example, and it costs Comair $1000 to fly the flight, then Delta pays them $1100. If Delta can only make $900 on the tickets though, in the end Delta lost $200 operating the flight - but Comair will show a "profit" of $100. Net loss to the Delta Corporate familiy - $100 (Comair +100, Delta loss -200).
Now take the same scenario but lets assume it is Compass and they can fly the flight for $800. Delta will pay them the same cost + 10%, or $880 to fly the flight. If Delta collects the same $900 for tickets, then Delta makes $20 on the flight and Compass collects $80 of "profit". Net gain to the Delta Corporate family - $20 (Delta +$20)
There is nothing inaccurate about my facts - this is the way it works, so like any business owner Delta really does not care if it is done in house or outsourced, as long as it is profitable.
Does that make sense? That is why the real goal is to find whoever can do it the cheapest.
11-04-2009, 06:53 PM
pants on the ground
Joined APC: Jan 2007
Position: back seat
Posts: 1,358
for you jfk pilots. people on a.net seem to like this.
YouTube - Lufthansa A340-300 Pilot wants to leave his airplane
YouTube - Lufthansa A340-300 Pilot wants to leave his airplane
11-04-2009, 10:17 PM
Line Holder
Joined APC: May 2009
Position: Soon to be Unemployment Line?
Posts: 43
Originally Posted by Lowlevel
What does this mean? That the planes will be flown in the rain more? Comair has the dirtiest aircraft on the block!
It means on some overnights there wil be a aircraft washing task added to the work order for a entire a/c watch. In the real world what is gonna happen is when the mechs get done with everything else the back around the apu exaust will get washed by the mechs. Even though we have cleaners who do the insides, for some reason they dont know how to use a hose
...I agree some of our planes look like they should be hauling cargo not people...and I would guess that Comzir opts for the cheapest paint on the new paintjobs, because they look like crap after a month or so.
11-05-2009, 04:39 AM
West Coast livin
Thread Starter
Joined APC: Mar 2007
Position: Captain
Posts: 984
Originally Posted by H46Bubba
Well it wasn't as interesting as the Vag's conference calls..I can tell you that for a fact!
Lets see.
- Flew 76,338 fewer block hours in 2009 than in 2008(20%)!
- Flew 2,867 more block hours this year than planned.
- Block hours planned for 2010, 16% less than 2009.
- 18% flying to transfer back to CVG over next six months.
- By July '10; percentage of "planned" flying will be: 42%/NE,
39%/CVG, 14%/DTW, 5%/Other.
- No MSP or ATL based flying planned for 2010
- 15 Lease returns for 2010 and 6 for 2011.
- Total projected fleet by end of 2011: 13/CR9, 15/CR7, 87/CRJ
- Down to 2,730 employees after latest furlogh and voluntary
reductions.
- Changing e-mail over from Groupwise to MS Outlook
- Comair not going anywhere or disappering as posted in Cincy
Enquirer
- Smaller Airline now focused solely on flying
- Continue to reduce costs more comaprable to peers
- Continue to do more with less.
- Leverage mainline resources and find synergies(yes they used the
DL magic word) with sister wholly owned.
- No growth..but aligning cost for future growth (as always!).
- All a/c will be painted in Gen 4 by Sep. 2010.
- Mx launched a/c interior improvement plan: Extensive and more
frequent interior cleaning.
- Increased frequency of exterior a/c washes
And last but not least; we were 15% more expensive than the other bidders for the UA RFP.
Lets see.- Flew 76,338 fewer block hours in 2009 than in 2008(20%)!
- Flew 2,867 more block hours this year than planned.
- Block hours planned for 2010, 16% less than 2009.
- 18% flying to transfer back to CVG over next six months.
- By July '10; percentage of "planned" flying will be: 42%/NE,
39%/CVG, 14%/DTW, 5%/Other.
- No MSP or ATL based flying planned for 2010
- 15 Lease returns for 2010 and 6 for 2011.
- Total projected fleet by end of 2011: 13/CR9, 15/CR7, 87/CRJ
- Down to 2,730 employees after latest furlogh and voluntary
reductions.
- Changing e-mail over from Groupwise to MS Outlook
- Comair not going anywhere or disappering as posted in Cincy
Enquirer
- Smaller Airline now focused solely on flying
- Continue to reduce costs more comaprable to peers
- Continue to do more with less.
- Leverage mainline resources and find synergies(yes they used the
DL magic word) with sister wholly owned.
- No growth..but aligning cost for future growth (as always!).
- All a/c will be painted in Gen 4 by Sep. 2010.
- Mx launched a/c interior improvement plan: Extensive and more
frequent interior cleaning.
- Increased frequency of exterior a/c washes
And last but not least; we were 15% more expensive than the other bidders for the UA RFP.
Even if that line were true, the future growth is most likely someone else.
11-05-2009, 06:23 AM
Gets Weekends Off
Joined APC: Apr 2007
Position: NOYDB
Posts: 876
Originally Posted by CRJFixer
It means on some overnights there wil be a aircraft washing task added to the work order for a entire a/c watch. In the real world what is gonna happen is when the mechs get done with everything else the back around the apu exaust will get washed by the mechs. Even though we have cleaners who do the insides, for some reason they dont know how to use a hose...I agree some of our planes look like they should be hauling cargo not people...and I would guess that Comzir opts for the cheapest paint on the new paintjobs, because they look like crap after a month or so.
...I agree some of our planes look like they should be hauling cargo not people...and I would guess that Comzir opts for the cheapest paint on the new paintjobs, because they look like crap after a month or so.
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