CINCINNATI — The president of Delta Air Lines Inc. subsidiary Comair resigned on Friday as the regional airline struggles to reach a deal with flight attendants over contract concessions that it says it needs to emerge from bankruptcy protection.
But Delta said the decision by Fred Buttrell, Comair's president since January 2005, to step down does not mean changes in its operations or its stance on negotiations with the flight attendants' union. Don Bornhorst, a Comair veteran with 15 years of airline industry experience who became chief financial officer last year, will succeed Buttrell.
Joe Kolshak, Delta's executive vice president of operations, said he chose Bornhorst, 41, to replace Buttrell in part because of his familiarity with Comair and the negotiations with the union.
Bornhorst has worked in most areas of Comair's operations and is a native of Erlanger, Ky., near the Cincinnati/Northern Kentucky International Airport that is the carrier's primary hub.
He said he hopes Bornhorst's selection signals the company's desire to reach a deal that works for Comair and its unions.
"Our goal remains the same — to restructure Comair to be a viable entity so that we can once again grow it," he said.
Comair has said it must have concessions from the flight attendants as part of a plan to cut $42 million in annual costs. Unions representing pilots and mechanics have agreed to concessions, but those deals are contingent on the flight attendants accepting cuts as well.
Like its parent Delta, Comair, which has 6,400 employees and operates 850 flights daily to 108 cities, is trying to emerge from Chapter 11 bankruptcy protection filed last year.
A U.S. bankruptcy judge in New York refused last month to allow the company to reject its contract with flight attendants so it could impose $8.9 million in wage and other cuts. Negotiations are set to resume the week of June 5 with the 970 flight attendants, represented by the International Brotherhood of Teamsters.
Connie Slayback, president of Teamsters Local 513, doesn't expect Buttrell's resignation to change the company's position.
"The communication I've had from the company is our negotiations will not be affected, that we will pick up where we left off," she said.
Doug Abbey, a partner at the aviation consulting firm The Velocity Group, said Bornhorst's selection shows that finances will continue to be a priority.
"It's hard to read between the lines, but I think the message is that Comair is still an airline very much on the ropes and one that needs to get its financial house in order to be sustainable," Abbey said.
Analysts have said Comair's future is not assured, even if an agreement is reached with the flight attendants.
"No one should be fooled into believing that Delta has to have Comair," said Mike Boyd, an aviation industry consultant with The Boyd Group. "If Comair was shut down tomorrow, Delta could restore service within 60 days by leasing small jets and labor from another company."
Comair has to get its cost structure down or face liquidation, said Ray Neidl, an analyst with Calyon Securities Inc.
"Sometimes a change in management can get negotiations moving again," Neidl said.
Kolshak wouldn't rule out the possibility that Comair could be sold one day, but he said that is not his focus now.
"To be able to sell an asset, you've got to restructure it so that it's a profitable concern," he said.
Buttrell, 43, said he felt it was time for new leadership after weighing family and personal needs, Comair said.
Kolshak stressed that Buttrell's resignation was not Delta's choice.
"It would have been my choice to have Fred remain in that position," he said.