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The chief financial officer of Delta Air Lines said on Monday the company may explore the sale of its regional carrier Comair as the bankrupt airline seeks to raise money and cut costs.
Delta would explore the possibility of a sale of Comair if the wholly-owned unit could be restructured, although the airline does not have a plan in place, said Delta CFO Edward Bastian at a hearing in New York's bankruptcy court.
"If Comair is able to restructure, we will explore" the possibility of monetization, he told the court.
Bastian was testifying during hearings at the bankruptcy court, where Comair is seeking to tear up its flight attendants' contract as part of its push to cut costs.
Comair, which filed for bankruptcy protection in September with Delta, has said it needs about $42.3 million in annual cost cuts, including about $8.9 million in savings from its flight attendants, to restructure and be competitive. The airline already has agreements with its pilots' and mechanics' unions.
The flight attendants' union, the International Brotherhood of Teamsters, has argued that the airline's demands for cuts are not justified and place a disproportionately large burden on its members.
The union has threatened to strike if its contract is thrown out, with the flight attendants having already voted to authorize a walkout at the carrier. The airline has about 970 flight attendants.
"That is certainly a serious action that we have to look at," union spokeswoman Victoria Gray said in an interview. Gray said the average annual salary of flight attendants was $28,000 and the cuts proposed by Comair would reduce pay by about $10,880.
Judge Adlai Hardin told the two sides it was in their interest to negotiate an agreement rather than him ruling on it. "I suggest you negotiate and resolve the matter yourself."
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