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Tue, Aug 29, 2006

Delta Standing By Subsidiary... For Now

But Will Comair Survive After Accident?

Sunday morning's crash of a Comair CRJ in Lexington came as the airline struggles through bankruptcy... filed the same day Comair's parent company, Delta, filed for Chapter 11 protection.

The company has already reached new labor agreements with its pilots and mechanics... and is still trying to wring almost $8 million a year in savings from its flight attendants.

Both the airline and the Teamsters Union -- which represents the flight attendants -- report progress in those talks, which are vital in several ways... most importantly because the deals Comair has reached with pilots and mechnaics depend on the flight attendants also ratifying a new contract.

But they're also important because Delta is so concerned about Comair's financial situation that, as Aero-News reported, it's now taking bids... daring other regional carriers to come up with numbers that can beat those of its own subsidiary.

Regardless of the growing ill will between Delta and its subsidiary before Sunday's accident, Comair President Don Borshort says he has access to the full resources of both his company and his parent company in trying to help the families of those who died in Sunday's crash at Blue Grass Airport.

FMI: www.comair.com

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