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CNN Live Sunday

Comair Announces Future Layoffs

Aired May 13, 2001 - 17:10   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
STEPHEN FRAZIER, CNN ANCHOR: One day after we told you pilots have rejected a settlement offer, the regional carrier -- the nation's second largest -- said, the next step will be 2,000 layoffs. CNN's Patty Davis has that story.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT (voice-over): Grounded for the past 7 weeks by a pilot strike, Comair, one of the nation's largest regional airline, is laying off half of its 4,000 nonstriking employees.

UNIDENTIFIED FEMALE: I will go on no matter what the future holds, but I will really miss it.

DAVIS: The airline said the layoffs are needed to save money after Comair's pilots rejected a settlement offer. Union officials say the offer, crafted by the National Mediation Board, required the pilots to work excessive hours and fell short on retirement benefits.

UNIDENTIFIED MALE: We do not want the airline to go down. This is not to harm Comair. The pilots of this airline, love the airline.

DAVIS: Delta, which owns Comair, says the pilot's decision is crucial to Comair's future. The airline says it's losing as much as $4 million a day as a result of this strike, and had warned a no-vote could bring more layoffs and even force Comair to shut down.

The bitter strike took a turn for the worse, just as the summer travel season gets underway.

UNIDENTIFIED FEMALE: I really miss flying Comair. I really enjoyed them; the service is great, they are friendly. I really, really am sorry they are not flying now.

UNIDENTIFIED MALE: If Comair goes down in a downward spiral, where they start really continuing to cut routes, or even shut down entirely, it will have an impact on passengers in the short run. But I think Delta will find a way to fill in with flights with other subsidiaries and I think other regional airlines will also fill in the gaps.

DAVIS: Analysts say the outcome will likely set a precedent for other regional airlines. (on camera): The battle is whether regional pilots will get the same benefits and work rules as pilots at bigger airlines. Delta and Comair say they can't pay higher wages and benefits, and stay competitive with other low cost, regional airlines.

Patty Davis, CNN, at Reagan National Airport.

(END VIDEOTAPE)

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