Comair

This week's post is about Comair, a company I know little about.  I've heard bits and pieces about Comair over the past few years, and have studied the unfortunate accident of Comair Flight 5191.  A few of our classmates have also posted blogs about the airline before this assignment was due.  Wikipedia has been my friend for this post, and I am regurgitating their information.  Comair started as a private operation in 1977 by four guys in Cincinnati, Ohio.  They began scheduled service with two Piper Navajo, but in 1981, made the company public to raise funds to update their fleet.  In 1984 Comair became a Delta Connections carrier.  Things worked out well, and Delta purchased 20% of Comair in 1986.  Finally, in 1999, Delta purchased the rest of Comair for over two billion dollars.

Since 1999 Comair has been owned by Delta, and has ridden the waves of the airline industry.  They have experienced a strike, bankruptcy, poor management, and even two years of having the lowest percentage on on-time flights.  The industry has changed, and Comair's practices and fleet of airplanes have not kept up with the times.  Their fleet of 50 passenger jets was finally deemed inadequate to do business, and on July 27, 2012, Delta announced the closure of Comair.  Crain's Detroit reported that federal law requires companies to give 60 days notice to state and local governments before closing companies that will affect 50 employees or more.  Crain's also reported that Delta plans to reduce their 50-seat regional jet fleet from 350 to 125.  The 50-seat jets will be leased to other airlines and will be replaced with 76-seat regional jets.

The outlook for regional carriers is grim.  According to Reuters, there are currently 61 regional carriers.  This is down from 247 three decades ago.  Earlier this year, both Pinnacle Airlines, and American Eagle Airlines filed for chapter 11 bankruptcy.  Most of this business shifting is due to the rising costs of fuel.  It is causing airlines to focus more on longer routes.  Larger airports are seeing an increase in travel, and smaller hubs are seeing the opposite.  More people are flying to larger airports and then commuting the rest of the way.

Regional airlines have typically relied on contracts from major carriers.  Regional carriers will need to update their fleets in order to stay in business.  They might also want to think about operating as their own company, and scheduling their own routes.  Maybe it is time for airlines to operate all of their own flights, and regional carriers to be out on their own.

ExpressJet is currently hiring pilots.  It doesn't list the starting pay, but an inside source says the first year pay for a first officer is $23.00 per hour.