VS/Virgin America/Comair

So this is a little off topic, but I thought it would gain more attention here than in the USA forum...

First of all a little disclaimer: I am in no way implying this is going to happen, nor am I contributing any information that cannot be found in the media. I am simply putting some facts together to form a logical conclusion.

I work for Comair, which for those of you unfamiliar with the Delta Connection system, is a wholely owned subsidiary of Delta Air Lines. We operate under the Delta Connection name as a regional feeder airline for the Delta mainline system. Based at the Cincinnati, Northern Kentucky International Airport, we operate an all jet fleet of Canadair Regional Jet's. Since our new company president arrived on the property, Comair is back to being innovative, on a growth strategy, and pursuing new aircraft purchases, among other goals.

For those of you who haven't been following American news, Delta recently sold Atlantic Southeast Airlines, its other wholely owned subsidiary, to SkyWest Airlines, for (I believe) $425 million. With the basic purpose being quick cash to try and help DL avoid bankrupcy, and removing ASA debt from the DL balanace sheet.

Rumor has it that Delta has stated, behind closed doors, that the first company to offer $800 million for Comair can have us.

My question is this...

What is the status of the rumored Virgin America?

I heard a rumor about a year ago (from one of our flight attendants) that Branson had showed an interest in Comair at some point.

Being that we serve the majority of VS east-coast destinations (as part of the over 100 destinations we serve, and many on their US route "wish list"; EWR,JFK,BOS,ORD,YYZ,YUL just to name a few, is it feasable that Branson may once again show an interest in Comair-- I have heard that "Virgin America" is on hold due to some sort of licensing/regulatory limitations.

With a well established presence in the US, some sort of a Comair bid could not only feed well into the VS system, but also offer some real growth options into a Virgin America carrier. Not to mention that I have been told by more than a couple of our customers (from mixed demographics: leisure/business and non-frequent fliers/elite frequent fliers) how great VS service is... who have also said they would fly with VS more if they had an easier way to get to them... IMO the CO code-share deals are just not cutting it if VS really wants to expand into smaller American markets.

Unfortunately due to our DL relationship, many of our customers and the media judge Comair the same as Delta... constantly asking about bankrupcy and other issues, which is lowering morale at the company. We are much stronger IMHO right now that Delta is, and being aligned to serve a company as modern and innovative as VS would be welcomed by many a few employees, I belive.

As I stated in the disclaimer, I'm certainly not claiming this will happen, just wondering what people's thoughts are on the matter?

In addition, I just read the full bio of Fred Reid, Head of Virgin America and learned some interesting things (which I'll admit I hadn't researched before making my original post).

Fred Reid previously served as President and COO of Delta Air Lines, he oversaw the creation of Song (Delta's low-fare airline), served as Chairman of Delta Connection, built SkyTeam, oversaw Delta's acquisition of Comair and ASA, and worked as Executive VP and CMO of Delta. Ironically enough, I'm sure he still knows many of the executives at DL/DL Connection... which could help to make something like my original post actually work...

Originally posted by GrinningJackanapes

Originally posted by webdes03


"Rumor has it"

"rumored Virgin America"

"I heard a rumor about a year ago"

Hmmm...this all sounds like Bananarama I'm interested in the kernel of the topic, but you said that the supporting info was in the media and instead it sounds like you rely a lot on hearsay and rumor.

Are there hard facts here to support your claims?

Thanks!

I said that the info could also be found in the media... I didn't say that it didn't originate within Delta. I have seen memo's on the sale of ASA, and some of the terms of that sale have been formally released by Delta.

As for the rumor that Branson was interested in Comair... obviously Delta would never confirm or deny this, even internally, however the FA that I spoke to, is very close to several regional managers, and other people in corporate, and not someone I would consider to make up material.

As I said in my post, there is no proof, I was looking for general comments as to what people thought of the idea.

The rumor that DL would consider selling us, is A) not confirmed as they obviously don't want that negative PR, but did come down the ladder from someone that works in corporate. B) This is logical. With every day, fuel costs alone are bringing DL closer and closer to bankrupcy, not to mention the fact that labor costs at DL are very high. Even with pilots taking $1B in concessions last year it is seeming less and less likley that DL can avoid bankrupcy. ASA was sold for quick cash, and to remove debt... but that won't be enough to save DL, and if they are offered enough for their assets, Comair being one, they will sell... everything has its price. C) Although it's not up to Comair weather or not we're owned by DL, many people within the company have said that we will jump at the chance to be independent of DL again. Our growth plans to purchase new aircraft have been hampered by the fact that being owned by DL, our financials and their financials are combined. Although Comair is making money, no financer will back new aircraft due to DL's financial position. D) I was at a team summit 2 months ago with the president of Comair. When discussing the financial future of DL, our president said, "Comair will be a growing airline in years to come weather or not we're owned by Delta, and we don't need to be owned by Delta to be successful." Call it what you like, but it sounds link a hint of a sale to me... but again it's logical.

Anything that points to the creation of VAM is good enough for me! More competition from more, good, jetBluish airlines = cheaper prices for the rest of us!