COMAIR Regional Airlines

Case Study
Pages 10 (2510 words)
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In terms of the overall industry outlook for US airlines, Fitch Ratings stated that the magnitude of the anticipated decline in jet fuel costs for 2009 will help U.S. carriers in manage liquidity. However, persistent problems such as the expected softening in traffic, the evolving yield and unit revenue patterns limits opportunities for credit quality and ratings improvement.


The regional airline COMAIR, a subsidiary of Delta Air Lines, which serves routes in the United States, Canada and Europe is poised to become very competitive and profitable in 2010. COMAIR currently has 5,800 dedicated aviation professionals and services 511 daily flights to about 77 international and domestic destinations. The COMAIR is the preferred airline of choice by most business travellers and frequent travellers as it offers affordable airfares. COMAIR has gone from strength to strength by rapidly rolling out international routes and additional services for the customers.
Another important cost factor for regional airlines is the national and local taxes imposed by the US government. Most countries treat airlines like cash cows by levying national prerogatives and taxes on them that results in higher costs of doing business.
Another positive trend is that inspite of the US recession, the regional airlines do offer the safest form of transportation. Although US airlines carry 3.5 million passengers annually, the accident rate is very low compared to the accident rates of motor vehicles and maritime vessels.
Another interesting and positive development is that air travel has improved its safety record over time. ...
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