Browsing Posts in Comair

It’s time for my favorite post of the year. Think of it like an awards show where they show you that long reel of people who have died since the last one. But in this case, we’re talking about airlines. Hold the applause – there’s nothing more awkward than hearing deafening silence for the one sound editor who nobody knows (Mint Airways?) while Mr Big Star (Comair? MALEV?) gets a rousing applause.

In the airline world, it doesn’t matter anyway. They’re all toast. So let’s just honor them all, some for their achievements and others for their sheer stupidity. It’s time to celebrate those airlines we lost in 2012. (You can see previous honorees here.)


Mesaba TombstoneMesaba – January 4, 2012
The death of Mesaba was a strange one, to say the least. Once the Northwest Airlink beacon of bright red throughout snow-covered upper Midwest towns, Mesaba was bought by Northwest and operated as a subsidiary. Once Delta took over, it sold Mesaba off to Pinnacle and then the end was near. As Pinnacle continued to reshuffle its operations, it made the decision to transfer all the remaining Mesaba jets to Pinnacle and then Mesaba would briefly disappear. Ultimately, the Colgan name was to be ditched with all props resurfacing under Mesaba. But Pinnacle went bankrupt and shuttered its prop operation completely. The revival of Mesaba wasn’t to be.


Cirrus TombstoneCirrus Airlines – January 20, 2012
The death of Cirrus was just a matter of circumstance. The airline, except for its small charter operation, was operating almost entirely for Lufthansa as a regional carrier doing short haul flying. Lufthansa has been having its fair share of problems within Europe, so it decided to make some changes. When Lufthansa decided that it was going to end its regional partnerships, poof, that took away most of the reason for Cirrus to live. It had little to no choice but to shut its doors and disappear quietly into thin air.


Spanair TombstoneSpanair – January 28, 2012
The once almost-but-not-really mighty Spanair finally succumbed this year. It was the number two airline in Spain and it was considered by some to be the flag-bearer of Catalonia with its base in Barcelona. For years, Spanair was owned primarily by SAS, and it was even a member of Star Alliance. When I was in college, I remember seeing Spanair’s 767s arrive at Dulles airport. But those are all distant memories. The last decade was a mess. Spain’s economy collapsed, SAS stumbled along, and Spanair needed a bailout. Its last hope was with Qatar Airways, but that fell through. And so Spanair met its demise.


MALEV TombstoneMALEV – February 3, 2012
Poor Malev. Of all the airlines that failed this year, it’s little MALEV that tugs on the heartstrings most. Born when Hungary took back control of its own airline from the Soviets post-World War II, MALEV found itself trying to find its place. In recent years, MALEV joined oneworld and tried to find a niche, but it found itself in a place similar to many others in smaller European countries. Those places don’t need a ton of service but they have held on to their flag carriers even though low cost carriers have eaten them alive. In Hungary, MALEV’s time was about to run out. When the European Union said MALEV wasn’t allowed state subsidies, the end was near. Its liquidation was ordered on Valentine’s Day.


Air Zimbabwe TombstoneAir Zimbabwe – February 6, 2012
The fact that Air Zimbabwe survived all the way until 2012 is a miracle in its own right. Zimbabwe has suffered through massive inflation under an autocratic dictator for years. People couldn’t afford to eat, yet the airline somehow soldiered on. From an airline dork perspective, the biggest thing that will be missed is the retro-awesome livery that graced its airplane (yep, it only had one airplane in the end, though there were rumors of a second floating around). With airlines like Emirates and KLM now serving Harare, it’s unlikely people will miss Air Zimbabwe. They couldn’t afford to fly it anyway.


Air Australia TombstoneAir Australia – February 17, 2012
There was a slight chance that Air Australia was going to be something great. Very slight. Instead, it flamed out incredibly quickly. Strategic decided to rename itself Air Australia later in 2011 to get more of a patriotic thing going for it. It was going to be a new competitor in Australia with flights all over, even to the US (Honolulu). But it lasted for just a few short months before it realized that success was not meant to be. I imagine if anyone was surprised, it was simply at how quickly its demise happened.


Continental TombstoneContinental Airlines – March 2, 2012
When it comes to mergers, I officially declare an airline gone as soon as you can no longer book a flight on the airline. That day came for Continental on March 2 when the CO code disappeared and the United name took over. Now let’s be honest – Continental has hardly disappeared. I mean the airplane looks exactly the same just with a different name. And most of the surviving folks at the top are ex-Continental. But it is the death of an historic name, and we should honor that. I like to think of Continental as the Proud Bird with the Golden Tail, based in LA. But that was a long, long time ago.


Direct Air TombstoneDirect Air – March 13, 2012
Direct Air wasn’t much of an airline. In fact, it had no airplanes at all. But Direct Air, which started life as Myrtle Beach Direct Air, chartered airplanes from several operators to get people from small cities to obscure tourist destinations. The airline limped along for quite some time, but then it shut down very quickly, leaving many people stranded. Many small cities mourned the loss of the service, and others have tried to find replacements. But none are likely to replicate what Direct Air did (and for good reason).


REDjet TombstoneREDjet – March 15, 2012
Of all the failed airlines this year, I actually thought REDjet held the most promise. The idea was simple and had been done many times before elsewhere – bring low fares and reliable service to the Caribbean. For those who have flown within the Caribbean, you know it’s not cheap with rare exceptions. The original plan was to base in Jamaica, but that fell through so the airline had to move itself over to the Barbados. It’s kind of like starting Skybus in Columbus. Good idea, bad execution. Maybe one day the plan will work to bring lower fares to the Caribbean, but that day was not in 2012.


AeroSur TombstoneAeroSur – March 31, 2012
Bolivia’s largest airline also became Bolivia’s deadest airline when it shut down early in 2012. It was actually the country’s flag carrier for some time even though it was a private airline. That standing started to erode when the country effectively decided to kill it. That might not be completely fair, but Bolivia did start up Boliviana de Aviación in 2007 (to replace Lloyd Aereo Boliviano), and that did not exactly help AeroSur’s cause. The airline tried a lot of different things, even operating a 747 to Europe, but in the end, it didn’t have what it took to make money, especially competing with a government-owned carrier.


Cimber Sterling TombstoneCimber Sterling – May 3, 2012
Skyways – May 22, 2012
The hodge-podge that was Cimber Sterling finally met its maker this year. Cimber had been around for ages, but it purchased the ashes of Sterling (which itself was a mash-up of Sterling European and Maersk), and tried to make the thing fly. It didn’t work for long. At the end, it was owned by the same company that owned regional airline Skyways along with City Airline. With competition increasing (good day, Norwegian), none of these guys stood a chance. They were all shut down.


PLUNA TombstonePLUNA – July 6, 2012
The oldest airline to shut down this year was little PLUNA, the national airline of Uruguay. And with it, goes another tie to legendary VARIG of Brazil. Uruguay is not a big country with Montevideo, its main point of entry, a mere 140 miles east of Buenos Aires. But for years, Uruguay supported its flag carrier. In the mid-1990s, it was privatized with VARIG taking half the company. Its ownership bounced around over the years as VARIG went under, and ultimately it went back to the state. When the state couldn’t find any buyers, it shut the money-bleeding airline down. Some blame Argentina for its protectionist policies supporting its national airline, but in the end, PLUNA just had too much debt and things weren’t going to get any better.


WindJet TombstoneWindJet – August 12, 2012
When Alitalia decides you’re too much of a mess, that doesn’t bode well for the success of your airline. And that’s exactly what happened to WindJet, an Italian airline that lasted a lot longer than most probably would have guessed. Early in 2012, with Sicilian-based WindJet failing, Alitalia decided to take over both that airline and Blue Panorama. The Blue Panorama deal fell apart, but WindJet was still good to go… until the government stepped in. The government decided that Alitalia would have to give up some slots to new operators for the deal to go through. With that caveat, Alitalia decided the deal wasn’t worth it and WindJet shut down. The government tried to get Alitalia to step back in after that but to no avail, and WindJet was gone … with the wind.


Colgan TombstoneColgan Air – September 5, 2012
When most Americans hear the name Colgan Air, they shudder. That’s because Colgan was the owner of the Q400 that plowed into a neighborhood in Buffalo on a dark and stormy night in 2009. But there was a lot more to Colgan than that. The airline was originally based near Washington, DC and spent its years bouncing around with Beech 1900s and Saab 340s to feed Continental and then US Airways and United Express. In 2007, it was bought by Pinnacle and became the Q400 operator for Continental. After a series of mergers, Colgan’s name was to be phased out. When Pinnacle filed for bankruptcy, the decision was made to get rid of all prop flying entirely. This September, the airline was shut down for good.


bmiBaby Tombstonebmibaby – September 9, 2012
Take one airline in a financially precarious place (bmi) and try to come up with a plan to profit. What do you get? You get yet another airline within and airline. *sigh* Amazingly, bmibaby lasted for a long decade. It flew a fleet of older generation 737s from secondary British cities primarily to sun destinations. Ah yes, the time-tested tradition of trying to put a tan on those pale white faces. But bmibaby was never going to beat the charters and true low cost carriers at their games. It somehow survived for a full decade until bmi was sold. Its new parent had new interest in running bmibaby or bmi regional. At least a buyer was found for bmi regional, but nobody wanted to touch bmibaby. Without an operator to be found, the airline was simply shut down.


Air Nigeria TombstoneAir Nigeria – September 10, 2012
Remember Air Nigeria? Probably not. But do you remember Virgin Nigeria? I’m going to guess you do. That airline had a falling out with Sir Richard Branson, so they parted ways (including the ownership stake) and the airline became Nigerian Eagle. Eventually it became Air Nigeria after yet another change. Air Nigeria was a mess. It had financial problems its whole life, and run-ins with the government were regular occurrences. It also suffered through strikes. The airline was simply poorly run, and it finally kicked the bucket after the bungling brass ran out of options.


Comair TombstoneComair – September 29, 2012
This was a death that many expected, but there were still plenty of tears shed when it came. Comair was an early Delta Connection carrier and became synonymous with its mighty Cincinnati hub. It was one of the first to demonstrate the marketing power of the regional jet and ordered a ton of them. Comair was a shining star, and Delta ended up buying the airline. Its employees wanted to be paid better, and the subsequent strike that effectively shut down the Cincinnati hub was a wake up call for mainline carriers to diversify their regionals. But that was just the beginning of a long slide for the airline. In the end, two things led to Comair’s downfall. The Cincinnati hub was slashed and fuel prices skyrocketed. Comair kept shrinking until it was really irrelevant. Delta shut it down as part of its regional realignment because there simply wasn’t a need for the once high-flier.


bmi Tombstonebmi British Midland – October 28, 2012
The death of bmi came with such a whimper that I had completely forgotten that it officially occurred. I believe the final day of the “mighty” BD code was on October 28. After that, all bmi flights were merged into British Airways. I think of bmi as Lufthansa’s folly. When Lufthansa agreed to be forced into buying bmi, it made a mistake. And ever since it bought the airline, it tried everything to sell it. In the end, BA bought it simply for the slots at Heathrow, beating out Virgin Atlantic in the process. Were it not for that Lufthansa deal, bmi probably would have disappeared long ago. But bmi will live on – the regional airline was sold off and is operating independently as bmi regional now.


1Time Tombstone1Time – November 2, 2012
Of all the failures on this list, 1Time’s is the one with the happiest ending. It was just another South African low cost carrier but without a major carrier tie (Mango with South African and Kulula with BA/Comair are the others) and it went under. But there is now hope for the remains of this airline. FastJet, the airline that easyJet is involved with around Tanzania and elsewhere has entered into an agreement to purchase the remains and start flying in South Africa. Keep an eye on FastJet as it grows and tries to make a serious go at a reliable pan-African low cost carrier. From a lot of ashes this year, at least there is one phoenix.

—–
Here are a few others that failed this year, but I don’t have enough to really say about them. Feel free to eulogize if you miss them.

On Friday, Delta announced that it would shut down its regional subsidiary Comair. This has been expected for some time so the announcement wasn’t exactly breaking news. What was more interesting was how carefully Delta crafted its press release on this matter.

Comair Grave

Just because it wasn’t a surprise doesn’t mean it’s not sad to see Comair go away. The airline was one of the earliest Delta Connection carriers and has been affiliated with Delta for almost three decades. The airline’s heyday was in the early 1990s. It was the first US airline to begin the RJ revolution when it started flying the 50 seat CRJ in 1993. The next year, it opened a state of the art regional concourse at its home-base in Cincinnati. Things were going very well. In fact, the airline had done so well in the 1990s that Delta purchased it in 2000 for over $2 billion.

But things went downhill quickly. The airline suffered through a nasty pilot strike in 2001 that shut it down. It was then that airlines realized diversifying operations across multiple carriers in a hub was so important to keep things moving. The strike was over low pay, but there’s a problem with that. When the airline isn’t a brand at all (read: any regional airline), the branded partner can just replace it with lower wage options. And that’s why Comair with more than 100 jets flying became Comair with a plan for fewer than 30 until the shutdown happened.

Comair’s costs were too high compared to other regional partners and that doomed the airline. As an Oliver Wyman report noted using 2010 numbers, the gap was huge. Comair could fly a CRJ-700 for 11.3 cents per available seat mile (ASM). ASA could do it for 6.8 cents on a similar average stage length.

Comair had already lost all of its 50 seat jet flying and was holding on to 28 airplanes with 70 to 76 seats. Having so few airplanes meant that costs would go even higher. The end was clearly coming. The recent Delta pilot contract sealed the deal. With Delta needing to drop more than 200 of the 50-seaters, the airline has a problem. It has to find a way to convince SkyWest to shed a lot of those 50-seaters despite there being a contract in place for them.

I have to assume that Comair’s 28 bigger jets can be dangled in front of SkyWest as a carrot for playing nice on the 50-seaters. Delta also needs to get Pinnacle to reduce the number of 50-seaters but since that airline is in bankruptcy and receiving financing from Delta directly, it will be easier to fix (or possibly just kill as well). With all this happening, there just wasn’t a place for Comair.

The Future of the Hub
But with the airline so closely tied to Cincinnati, there was a lot of concern that this shutdown also meant further cuts for Cincinnati. Delta was very careful to say that’s not the case. Sort of. The airline said “No reductions in the number of Delta flights are planned at Cincinnati as a result of this decision.” Note those last six words.

It’s very true that the decision to shut down Comair won’t impact Cincinnati. But the new pilot contract which greatly reduces the number of 50-seaters will hurt Cincinnati. I look at a market like Cincinnati to Greenville/Spartanburg. There’s one flight a day on a CRJ right now. The chance of that going to a bigger airplane is not good. And the chance that Delta will want to allocate one of its very few 50-seat jets to that route is also slim.

There will be changes in Cincinnati, but it won’t be because Comair shut down. It will be because the airline is remaking its fleet of sub-110 seat airplanes and will have to make some real changes in its network.

Delta does note that Cincinnati is currently profitable and will “continue to be an important market.” It doesn’t say anything about continuing to be a hub, but of course, it will remain an important market at the very least, but I do wonder what Cincinnati will look like in 2015 when the fleet transition is done.

What does get lost in all of this shuffling is that a lot of good people lost their jobs with Comair’s shutdown. May they all find new work soon.

Bad news for fans of transparency. According to PlaneBusiness, Both Comair and Pinnacle, regionals operating primarily for Delta, will stop reporting their on time performance information to the Department of Transportation (DOT). That sucks, but it’s somewhat understandable considering the circumstances. Let me explain.

Comair Pinnacle Stop Reporting On Time Info

First of all, let’s start with the rules. The DOT requires that airlines report their operational stats for public consumption if they have more than 1 percent of total domestic scheduled service revenue. Lame, right? I mean, every airline should be required to report. I’m all for transparency. But that’s a different story. Why are these two pulling out?

Well, Comair has been the incredible shrinking airline lately, and it’s now less than 1 percent of revenues so it no longer has to report. Pinnacle, meanwhile, has never been big enough to be required to report, but it did it out of the kindness of its heart. Now it’s decided to change course. Bummer.

But what would prompt this? My guess is that it’s related to the way the DOT makes airlines report, and Pinnacle and Comair don’t like it. I know we’ve talked about this before, but let’s talk about it again. On time performance and other operational stats are reported by operating airline. So if you bought a ticket on Delta to fly from LA to Atlanta, it will show up as Delta. But if you bought a ticket on Delta to fly from Atlanta to Greensboro, it’ll show up under Comair’s stats and not Delta’s.

Now tell me this, do you care what Comair’s on time performance is? No. You bought a ticket on Delta, so you care what Delta’s stats look like, and that should include all of its regional partners. After all, it says Delta (Connection) on the side of the airplane.

But why would that make Comair and Pinnacle stop reporting? It’s because they are, as regionals, doomed to be near the bottom in general. When the weather goes bad, airport capacity goes down. The mainline airline (let’s stick with Delta since we’ve been using it so far), has to make decisions about what flights can go and when. The goal is to displace as few passengers as possible in those situations, and that usually means the regionals take the brunt of the delays and cancellations because they fly smaller planes.

Let’s look at the November Air Travel Consumer Report, while we’re at it. It doesn’t help to look at the overall numbers, but it does help to look at airport-specific ones because that’s where the weather issues really pop out. And what better airport to look at than JFK, the king of weather problems?

Now, the most recent report was for travel in September and the weather was mostly good this month, but you can still see this effect:

JFK On Time Performance

It’s possible that Pinnacle and Comair are just running worse operations than Delta, but even if they’re running the best operations around, they’re still at the whim of Delta when flights need to be impacted. So why deal with that when you can just not report? Apparently that’s what Comair and Pinnacle have decided to do. That leaves ExpressJet as the only reporting airline that isn’t actually required to report, but since it’s going to be merged into Atlantic Southeast, that’s a moot point anyway.

I really wish the feds would require all airlines to report. This arbitrary threshold of 1 percent of scheduled service revenue is just goofy.

Why Comair’s On-Time Performance is More Concerning Than Atlantic Southeast’sBNET
Comair and ASA both sat at the bottom of the July on-time performance derby, but the airlines appear to have two different problems.

Meaningless Mishandled Bag Numbers Plunge in JulyBNET
Bag mishandlings are down, but the strange method of calculating the number makes these numbers pretty useless.

The Longest Delays Are In the NortheastBNET
This is no surprise, but for those wanting a passenger bill of rights, I have a better idea.

Midwest Starts Milwaukee – St Louis on American’s TurfBNET
Before American announced its St Louis pulldown, I wondered about this move. Now with hindsight, it makes sense.

Update: American Eliminates St Louis HubBNET
Just a quick update on my previous post.

American Raises $1.3 Billion in CashBNET
It wasn’t just route announcements that had American making news. They also raised a bunch of cash.



About | Directory | Shop | Awards | In the News | Ethics | Cranky Concierge
Powered by WordPress | SRS Solutions | © 2006-2013 Brett Snyder All Rights Reserved | Terms of Use | Privacy Policy