Bombshell: Comair to cease operations

[eolesen]

I'm well aware that the ground handling issue isn't directly tied to OH.

But, as you said, OH is wholly owned, and there's no good reason why you couldn't have seen OH ground workers given opportunities to go to DGS or even DL, especially if hiring is underway or will be during 2013. How hard would it have been to come up with a bridging solution?


I suspect you may be right wih the 401K issue being Fidelity's doing -- when I left AA, it was my responsibility to continue making payments against my outstanding loan with JP Morgan, or face the penalty for an early distribution. There was never any threat of withholding from my final check.

 

[Kev3188]

But, as you said, OH is wholly owned, and there's no good reason why you couldn't have seen OH ground workers given opportunities to go to DGS or even DL, especially if hiring is underway or will be during 2013. How hard would it have been to come up with a bridging solution?

... In the hubs, they wouldn't have to come up with a solution; it's already been done. When DL took over the handling on EV flights in ATL, they brought many (if not most) of their ramp/gate employees over to M/L...

 

[WorldTraveler]

have you heard more word but sounds like ML won't be getting all of the DCI work in the PMNW hubs as happened at CVG and ATL. Can you confirm what you have heard?

Part of the reason for insourcing DCI ground handling was to minimize cuts of DL employees over the past several years. I'm not sure that is necessary today, perhaps because there have been several rounds of early outs since the merger which presumably some PMNW people have taken.
I think there were always be the case that the big 4 hubs - ATL, DTW, MSP, and NYC (LGA and JFK) could always make the case for ML employee ground handling everything should the economic need arise.

 

[Kev3188]

I haven't heard anything about MSP/DTW/MEM other than the same rumors I always do...

 

[WorldTraveler]

Looks like the pilots are getting above average separation packages although some of it is dependent on Comair continuing to reliably operate until it shuts its doors.

"Delta Air Lines Inc. will spend up to $20.5 million on severance packages for Comair pilots, a union official said Tuesday.
That works out to about $31,000 for each of Comair’s 660 active pilots.
“It’s quite a bit more than what the company was contractually required to give us,” said Alan Cook, spokesman for the local bargaining unit of the Air Line Pilots Association."

and

"Cook said the pilot’s union secured three months of health coverage and an assurance that all sick days and vacation days would be fully paid. Eighty percent of payments will be dependant on pilots showing up for at least 85 percent of their scheduled flights. Another 20 percent of payments will depend on how many Comair flights are cancelled because of maintenance problems, crew shortages and other issues."

"The union representing Comair machinists said yesterday that its 240 members would receive severance benefits of up to $40,000 per employee, depending on tenure. Both unions secured a provision for its members to fly free on Delta after Comair closes."
http://www.bizjournals.com/cincinnati/blog/2012/08/details-of-deltas-severance-packages.html?ana=yfcpc