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AA Interest In Selling Eagle?  
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17285 posts, RR: 46
Posted (9 years 3 months 3 weeks 1 day 9 hours ago) and read 1430 times:

Given the other major carriers' interest in spinning off their wholly owned subsidiaries (ie CO and Express Jet, DL and Comair, etc.) is there any interest at American in selling American Eagle?


E pur si muove -Galileo
4 replies: All unread, jump to last
 
User currently offlineSsides From United States of America, joined Feb 2001, 4059 posts, RR: 21
Reply 1, posted (9 years 3 months 3 weeks 1 day 9 hours ago) and read 1417 times:

I don't think so. Given the size of the Eagle operation, I doubt they could sell it off in one piece. It would probably have to be sold in sections, roughly one for each aircraft type (CRJs, ERJs, Saabs, ATRs, etc.)

Remember, it wasn't too long ago that Eagle consolidated its operations buy purchasing the Eagle carriers. Now, the only independent airlines in the AA system are the Connection carriers that came with the TWA acquisition.

Given the rise of RJs on previously mainline routes (DFW-MSP, ORD-ATL, etc.), Eagle is probably responsible for too much AMR revenue for them to spin it off.



"Lose" is not spelled with two o's!!!!
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17285 posts, RR: 46
Reply 2, posted (9 years 3 months 3 weeks 1 day 9 hours ago) and read 1398 times:

"Given the rise of RJs on previously mainline routes (DFW-MSP, ORD-ATL, etc.), Eagle is probably responsible for too much AMR revenue for them to spin it off."

Revenue, yes, but also costs, and I wouldn't be surprised if those costs are bigger than the revenue. I would think having all your express product served by mostly one carrier would be a major liability for a major, not to mention a potential source for a lot of cost cutting by simply selling it off and/or having it bid on American Eagle work.



E pur si muove -Galileo
User currently offlineCkfred From United States of America, joined Apr 2001, 5155 posts, RR: 1
Reply 3, posted (9 years 3 months 3 weeks 1 day 9 hours ago) and read 1377 times:

If AA keeps getting hammered by high fuel costs and sees a significant reduction in unrestricted cash, I could see AA shopping part or all of the Eagle operation. If and when that situation arises, selling Eagle isn't an option.

By having Eagle as a subsidiary of AMR, it gives AA a lot of flexibility to tweak its schedule.


User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17285 posts, RR: 46
Reply 4, posted (9 years 3 months 3 weeks 1 day 9 hours ago) and read 1343 times:

"If AA keeps getting hammered by high fuel costs and sees a significant reduction in unrestricted cash"

That time is not now?

"By having Eagle as a subsidiary of AMR, it gives AA a lot of flexibility to tweak its schedule.
"

By selling Eagle it could gain cash as well as hammer down operating costs for its small jet provider...so the rationale goes.



E pur si muove -Galileo
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