As a carrot to get a salary freeze from Comair's pilots, the carrier's new president, Fred Buttrell, is offering new planes. In fact, an Embraer [ERJ] 170 was to be in Cincinnati last Friday for both tours and demo flights.

In a memo to Comair employees, Buttrell said the carrier will purchase at least 10 more Bombardier [BBD] CRJ 200s and 25 70-seat RJs. The 70-seaters will be either CRJ 700s or the Embraer 170s.

The carrier is seeking a pay freeze at current levels from the pilots and flight attendants. Buttrell wants a deal before a new set of raises kicks in during June. The length of the freeze is subject to negotiations. However, in the memo, Buttrell, noted he is attempting to put together a 10-year plan to ensure job stability and financing for the new aircraft. If ordered, the new aircraft would arrive between 2006 and 2008.

Based on Comair's interest in the Embraer 170, a Bank of America security analyst last week advised investors to "buy" Embraer's stock.

As to Comair's stick, Buttrell wrote: "I am not spending a lot of time focusing on what happens if we cannot achieve our goal, but obviously the options are not as bright."

While Buttrrell is seeking a wage freeze from the pilots and flight attendants, the 360 mechanics at the carrier will soon vote on a new five-year contract with a 2 percent pay raise. As part of the settlement, Comair will reduce outside maintenance work by setting up new facilities staffed by Comair mechanics in five cites.

Quick Takes

• Just as US Airways [UAIR] begins to feel more secure about its future, an unidentified foreign investor has stepped forward wanting to buy at least a portion of the airline. In a court document filed late last month, Legal Research Inc., of Kennesaw, Ga., filed a notice with the bankruptcy court stating its intent to buy the airline. The Georgia company is not disclosing who it represents. U.S. law limits foreign ownership to no more than 25 percent. At the same time, US Airways in a filing with the U.S. Securities and Exchange Commission noted it intends to increase its US Airways Express flying by 24 percent this year with the addition of 12 more regional jets. By comparison, the mainline will increase its flown available seat miles by a mere 2 percent.
• With the addition of more Airbus 319s, Independence Air [FLYI] will begin service to five West Coast markets in April. Service to San Diego will be the first to roll out on April 14 and the last new market will be Seattle starting on May 1. The financially troubled carrier has eliminated the satellite television service it had planned to have on the Airbus fleet. The carrier is saving $1 million per plane by not installing the TVs.
• The Regional Airline Association (RAA) has joined by 14 other airline, business and labor groups in asking Congress to reject a federal budget proposal that would double aviation security taxes, costing travelers and U.S. carriers $1.5 billion. In addition to the RAA, the groups include the AFL-CIO's Transportation Trades Department, Air Line Pilots Association, Air Transport Association (ATA), Air Travelers Association, Americans for Tax Reform, Cargo Airline Association, Competitive Enterprise Institute, Interactive Travel Services Association, National Business Travel Association, National Taxpayers Union, Travel Business Roundtable and Travel Industry Association of America. "Small communities will be particularly hard hit by tax and fee increases. Many cities have already seen a decrease in flights as airlines were forced to eliminate service because of higher security taxes and fees," said Deborah McElroy, RAA president. "Regional airlines provide the only air service for 72 percent of U.S. cities. The proposed tax increases will make it even harder to continue to fly to many of these small- and medium-sized communities."
• TAP Portugal wants more time to consider a merger or partnership with Portugal's regional carrier, PGA-Portugalia Airlines. While the two announced their intent to merge nearly a year ago, TAP wants two more weeks to wrap up the negotiations.