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Essay / Research Paper Abstract
This 5-page paper analyzes regional jet carrier Comair. Topics include state of the aviation industry, where Comair stands in the industry and recommendations on how it can improve its position. Bibliography lists 4 sources.
Page Count:
5 pages (~225 words per page)
File: D0_MTcomair.rtf
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Unformatted sample text from the term paper:
industry - and in the U.S., a deregulated one - means barriers to entry are low while buyer power is high. Such a combination means regular shakeouts.
Comair of Cincinnati, Ohio has managed to avoid such shakeouts. Founded by a father-and-son team during the late 1970s, Comair grew to become a well-received
company that was eventually purchased by Delta Air Lines. But what is the future of this company? Can it weather the recession? This paper will examine the trends of the
company then pose recommendations. One of the major problems to hit Comair in the late 1990s to early 2000s has been the
strike of its pilots. In 1999, Delta Air Lines purchased Cincinnati-based Comair to help boost the larger airlines profits by giving the company a strong foothold in regional-jet services (Brannigan,
2001). Delta and Comair had already had an agreement, but when Delta saw potential for regional jets, it ended up paying $1.8 billion to purchase 78 percent of Comair (Brannigan,
2001). At the time of the purchase, Comair had an operating margin above 20 percent - twice that of Deltas (Brannigan, 2001). The jets used by Comair were small jets
that are faster and more comfortable than the prop jets they are replacing (Brannigan, 2001). Trouble began however when Comair pilots, indicating
their jobs required the same training and certification as those pilots flying larger jets, receive increases in pay and retirement benefits to put them more on a par with colleagues
at larger airlines (Brannigan, 2001). To prove their point, the pilots walked out - with the blessing of their union, the Air Line Pilots Association (ALPA) (Brannigan, 2001). The pilots
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