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AA Selling American Eagle  
User currently onlineAABB777 From United States of America, joined Oct 2007, 607 posts, RR: 7
Posted (7 years 3 weeks 2 days 5 hours ago) and read 16609 times:
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Was just announced. Big news.
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FORT WORTH, Texas, Nov. 28 /PRNewswire-FirstCall/ -- AMR Corporation, the parent company of American Airlines, Inc., today announced that it plans to divest American Eagle, its wholly-owned regional carrier. AMR, which has been engaged in an ongoing strategic value review process, believes that a divestiture of American Eagle is in the best interests of AMR and its shareholders and will be beneficial to American, American Eagle, their employees, and other stakeholders.

The divestiture of American Eagle is intended to provide it with the structure, incentives and opportunities to win new business and provide new opportunities for American Eagle's employees. AMR also believes that the divestiture will enable American to focus on its mainline business, while ensuring American's continued access to cost-competitive regional feed. Once the two airlines are separated, it is expected that they will operate pursuant to a mutually beneficial air services agreement under which American Eagle will continue to provide American with regional flying of a scope and quality comparable to that provided prior to the separation and on terms that reflect today's market for those services.

AMR continues to evaluate the form of the divestiture, which may include a spin-off to AMR shareholders, a sale to a third party, or some other form of separation from AMR. The company expects to complete the divestiture in 2008; however, the completion of any transaction and its timing will depend on a number of factors, including general economic, industry and financial market conditions, as well as the ultimate form of the divestiture.

"The decision comes after a careful and deliberate evaluation of the strategy that will best enable us to continue to create value for our shareholders," said AMR Chairman and CEO Gerard Arpey. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure."

Arpey noted that, in addition to AMR having put in place an independent American Eagle management structure, with a chief executive officer and chief financial officer, American Eagle also has a well-formed operational structure and organization and has produced independently audited financial results for the past several years. Earlier this year, American and American Eagle entered into a new regional flying agreement between the airlines that reflects market-based rates, which ensures that American continues to have access to quality feed on competitive terms. Arpey added that AMR's divestiture of American Eagle and the regional airline's ability to provide quality feed at competitive rates to other carriers, as well as American, will better position American Eagle to compete for new customers and growth opportunities in the future.

American Eagle is a fully developed operating unit providing a full range of regional airline services with excellent employees and a modern fleet. It operates approximately 300 aircraft, with approximately 1,700 daily flights to more than 150 cities throughout the United States, Canada, the Bahamas, the Caribbean and Mexico. In 2007, American Eagle expects to generate annual revenues of approximately $2.3 billion.

The planned divestiture would include both American Eagle Airlines, Inc., which feeds American Airlines hubs throughout North America, and its affiliate, Executive Airlines, Inc., which carries the American Eagle name throughout the Bahamas and the Caribbean from bases in Miami and San Juan, Puerto Rico.

127 replies: All unread, showing first 25:
 
User currently offlineCtbarnes From United States of America, joined Mar 2000, 3491 posts, RR: 50
Reply 1, posted (7 years 3 weeks 2 days 5 hours ago) and read 16602 times:

Very surprising.

I wonder though, since AA and AE seem, from an outsiders view anyway, to be closely intertwined I wonder how AE will be able to funciton as a stand-alone entitiy. It would also depend on AA continuing to route passengers to AE flights. Would it be a codeshare arrangement? Could a stand-alone AE be profitable now that it has been separated from its parent?

Charles, SJ



The customer isn't a moron, she is your wife -David Ogilvy
User currently offlineERJ170 From United States of America, joined Apr 2004, 6788 posts, RR: 17
Reply 2, posted (7 years 3 weeks 2 days 4 hours ago) and read 16520 times:

Does this mean American Eagle can actually buy new aircraft of the size they want? Like some E70? E75?


Aiming High and going far..
User currently offlineElmoTheHobo From United States of America, joined Aug 2006, 1545 posts, RR: 1
Reply 3, posted (7 years 3 weeks 2 days 4 hours ago) and read 16456 times:



Quoting Ctbarnes (Reply 2):
Could a stand-alone AE be profitable now that it has been separated from its parent?

Eagle has a relatively high CASM compared to other regionals, I'll find the stats. It'll take some work for Eagle to lowers its costs and become competitive with other independent regional carriers.

Quoting Ctbarnes (Reply 2):
Very surprising.

Talk of spinning off regionals went into high gear after the FL Group sent their no BS letter to the board of directors.


User currently onlineAABB777 From United States of America, joined Oct 2007, 607 posts, RR: 7
Reply 4, posted (7 years 3 weeks 2 days 4 hours ago) and read 16441 times:
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The Associated Press adds: Fort Worth-based AMR said in a statement that it is still studying whether to spin off Eagle to AMR shareholders, sell to a third party or divest the carrier in some other way. Although planned for 2008, the timing of the divestiture could be affected by the economic, industry and financial-market conditions, the company said.

User currently offlineEGFCabinCrew From United States of America, joined Nov 2007, 7 posts, RR: 0
Reply 5, posted (7 years 3 weeks 2 days 4 hours ago) and read 16420 times:

From our employee website:

In 2006, Eagle made money on the flying it did for American. However, as a regional airline flying under a capacity purchase (or fee for departure) agreement with American, Eagle's profitability is dependent upon its ability to operate regional aircraft at a cost significantly less than what American pays it to perform the operation.

AMR keeps the margin that it pays Eagle, since Eagle is wholly owned. However, as Eagle's cost gap as compared to other regional airlines grows, AMR and American could end up paying more to Eagle than they would for another more cost effective service provider. Furthermore, AMR's shareholders expect to earn a profit on the money invested in Eagle, just like other stockholders expect to earn a profit on their investments. If Eagle's margin declines below an acceptable level, AMR could decide to invest in other areas of its business, and let another company invest in the regional airline business.

Looks like American wants somebody cheaper...  indifferent 


User currently offlineRFields5421 From United States of America, joined Jul 2007, 7607 posts, RR: 32
Reply 6, posted (7 years 3 weeks 2 days 4 hours ago) and read 16388 times:



Quoting ERJ170 (Reply 3):
Does this mean American Eagle can actually buy new aircraft of the size they want? Like some E70? E75?

It should break the lock on the mainline pilot's union holding Eagle back from larger aircraft.

And allow the mainline to cut the number of aircraft they fly, and of course aircrews and support staff - though with the union attitude - I would not be surprised to see a strike over those issues.

They (AE) might even be able to take the ATR's back into their corporate structure.


User currently offlineElmoTheHobo From United States of America, joined Aug 2006, 1545 posts, RR: 1
Reply 7, posted (7 years 3 weeks 2 days 4 hours ago) and read 16385 times:

Also interesting to note that the last time AMR prepared to spin off a regional, way back in 2003, they changed their mind and ended up holding on to OW.

It's a different market today, and the terms of the sale were for very different reasons, but who knows, what if AMR decides they are better off holding on to their regionals.


User currently onlineRevelation From United States of America, joined Feb 2005, 12938 posts, RR: 25
Reply 8, posted (7 years 3 weeks 2 days 4 hours ago) and read 16351 times:



Quoting AABB777 (Thread starter):
"The decision comes after a careful and deliberate evaluation of the strategy that will best enable us to continue to create value for our shareholders," said AMR Chairman and CEO Gerard Arpey.

"And another opportunity for me to give myself and the rest of the executive team a nice bonus for re-arranging the deck chairs"...



Inspiration, move me brightly!
User currently offlineERJ170 From United States of America, joined Apr 2004, 6788 posts, RR: 17
Reply 9, posted (7 years 3 weeks 2 days 4 hours ago) and read 16278 times:

Perhaps AA is getting themselves more in line to make themselves prettier for BA to buy them out? BA doesn't have an owned regional airline (do they), so they could be getting themselves in the same position? Just a thought..


Aiming High and going far..
User currently onlineAABB777 From United States of America, joined Oct 2007, 607 posts, RR: 7
Reply 10, posted (7 years 3 weeks 2 days 4 hours ago) and read 16278 times:
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It will be interesting to see 'how' it is 'sold'. Wonder if American Eagle, once out of AMR control, could fly regional routes for other mainline carriers - similar to SkyWest and others.

User currently offlineMAH4546 From Sweden, joined Jan 2001, 33278 posts, RR: 71
Reply 11, posted (7 years 3 weeks 2 days 4 hours ago) and read 16253 times:

Awesome news. AA needs this, and it will allow, hopefully, AA to explore more opportunities for regional carriers and expand regional flying. They have been heavily constrained in regional flying out of certain markets, especially Miami.


a.
User currently offlineERJ170 From United States of America, joined Apr 2004, 6788 posts, RR: 17
Reply 12, posted (7 years 3 weeks 2 days 4 hours ago) and read 16251 times:

Would "American Eagle" be the regional name or the airline's name? because "American Eagle" is sort of like "Delta Connection".. would they airline have to get another name (all called Executive or go back to their original name?)


Aiming High and going far..
User currently offlineMMEPHX From , joined Dec 1969, posts, RR:
Reply 13, posted (7 years 3 weeks 2 days 4 hours ago) and read 16247 times:

If it is sold (note, the article refers to AMR reviewing their divesture options which may include a sale) who are the likely buyers? Management buy out? Mesa Group? Cost of credit at the moment might not be all that attractive to suitors if AMR are looking for a big cash sale.

User currently offlineMcdu From United States of America, joined Apr 2005, 1487 posts, RR: 17
Reply 14, posted (7 years 3 weeks 2 days 4 hours ago) and read 16125 times:

AE being spun off does not guarantee that AE will be able to get larger planes for AE flying. The restriction is the scope clause in place by the APA (Allied Pilots Association) that represents the AA pilots. If AE wants bigger planes they would have to fly them outside of the AE code share. The scope clause is a GOOD thing. The more mainline jets the more ability for pilots to move up in the mainline system. Putting a bigger airplane at the regional only caps a pilots progression to that aircraft. Not too many enter the industry seeking to retire on an RJ. The only way to create more mainline jobs and to open up the 777's to the career path is to have pilots retire, add aircraft or add flying by optimizing the aircraft on hand.

The downside to the sell off is that AE could find itself broken up into several different carriers, much like the roots from which it arose. There could be several of the current regional players making bids for certain hub assets. This is just and example but you might see a company like Skywest bidding on the DFW ops. Republic/CHQ bidding on ORD and other companies seeking MIA and JFK. IMHO, I don't think there is any of the current carriers that want the entire operation. To keep it intact it will take a considerable amount of cash and not too sure someone really wants that type of out lay in expenses.

What could be the scariest part is that if you are currently an AE employee you could see AA put up for bid the AE flying. If that is the case then a company like Mesa or Skywest could work its way into the AA system by undercutting the new contract. Just hope this is not a dismantling of the jobs of the AE workers.


User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 15, posted (7 years 3 weeks 2 days 4 hours ago) and read 16097 times:



Quoting Revelation (Reply 9):
"And another opportunity for me to give myself and the rest of the executive team a nice bonus for re-arranging the deck chairs"...

...what do you think Arpey will give himself this year? $5 million?  sarcastic 

For the umpteenth time, its the AMR board which decides bonuses...Arpey can only negotiate for his salary, stock options and bonuses....

Quoting MAH4546 (Reply 12):
Awesome news. AA needs this, and it will allow, hopefully, AA to explore more opportunities for regional carriers and expand regional flying. They have been heavily constrained in regional flying out of certain markets, especially Miami.

 checkmark ...I think this might be part of the reason for the potential divestiture...it certainly gives AA more flexibility....



"Up the Irons!"
User currently offlineERJ170 From United States of America, joined Apr 2004, 6788 posts, RR: 17
Reply 16, posted (7 years 3 weeks 2 days 4 hours ago) and read 16070 times:



Quoting MAH4546 (Reply 12):
They have been heavily constrained in regional flying out of certain markets

I can see Republic with 175.. moving the RJ from RDU and STL to MIA.. and having Republic flying all the STL and RDU flights... *cheesy grin*



Aiming High and going far..
User currently offline777STL From United States of America, joined Dec 2004, 3766 posts, RR: 3
Reply 17, posted (7 years 3 weeks 2 days 4 hours ago) and read 15987 times:



Quoting Jacobin777 (Reply 16):
...what do you think Arpey will give himself this year? $5 million? sarcastic

For the umpteenth time, its the AMR board which decides bonuses...Arpey can only negotiate for his salary, stock options and bonuses....

Dammit, Jacob, quit infusing this thread with logic and common sense. How many times do I have to tell you.... Big grin



PHX based
User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17822 posts, RR: 46
Reply 18, posted (7 years 3 weeks 2 days 4 hours ago) and read 15955 times:



Quoting Mcdu (Reply 15):
The scope clause is a GOOD thing

There's no such thing. AA is not buy more mainline planes for mainline pilots to fly because of the scope clause--it's simply not flying any large regional jets beyond the few CR7s it can have, so instead of creating some jobs at American Eagle flying large regionals, it creates zero. APA effectively sells its regional brethren up river--how is that good for pilots?



E pur si muove -Galileo
User currently offlineTjwgrr From United States of America, joined Mar 2000, 2503 posts, RR: 2
Reply 19, posted (7 years 3 weeks 2 days 4 hours ago) and read 15931 times:



Quoting ERJ170 (Reply 13):
Would "American Eagle" be the regional name or the airline's name?

I kinda think the "American" would be dropped. They may operate solely as "Eagle" or the name may disappear all together depending on who the new owner is. I see management, Mesa Air Group or Republic Airways Holdings as a possible buyers.

How about Trans States Holdings purchasing American Eagle and incorporating them into GoJet?  duck 



Direct KNOBS, maintain 2700' until established on the localizer, cleared ILS runway 26 left approach.
User currently offlineAJMIA From United States of America, joined Dec 2005, 735 posts, RR: 15
Reply 20, posted (7 years 3 weeks 2 days 4 hours ago) and read 15854 times:

AMR stock is up $1.75 to 22.31 at 310pm.

Not sure how much value is in it for share holders.

I hate to see American Eagle being split away but this is purely an emotional response.

I still have not digested what this is going to mean to AA overall.

I sure hope we do not sell AAdvantage too.

AJMIA



Lady it's a jet... not a kite.
User currently onlineAABB777 From United States of America, joined Oct 2007, 607 posts, RR: 7
Reply 21, posted (7 years 3 weeks 2 days 4 hours ago) and read 15804 times:
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Wonder if regional flights will still be 'operated by American Eagle' or could it change to a potential 'operated by Eagle' (if AE were to shed the 'American' part of the name)? Could AA use other regionals, such as SkyWest, for their regional operation?

Still not sure what I think of all this. Want to get more details on what 'exactly' will happen with AE.


User currently offlineTWFirst From Vatican City, joined Apr 2000, 6346 posts, RR: 51
Reply 22, posted (7 years 3 weeks 2 days 4 hours ago) and read 15803 times:

Will AA remain the largest airline by RPM after the divestiture?


An unexamined life isn't worth living.
User currently offlineThegreatRDU From United States of America, joined Mar 2006, 2311 posts, RR: 4
Reply 23, posted (7 years 3 weeks 2 days 4 hours ago) and read 15776 times:

Is this good or bad?


Our Returning Champion
User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 24, posted (7 years 3 weeks 2 days 4 hours ago) and read 15746 times:



Quoting 777STL (Reply 18):
Quoting Jacobin777 (Reply 16):
...what do you think Arpey will give himself this year? $5 million? sarcastic

For the umpteenth time, its the AMR board which decides bonuses...Arpey can only negotiate for his salary, stock options and bonuses....

Dammit, Jacob, quit infusing this thread with logic and common sense. How many times do I have to tell you....  biggrin 

.. rotfl ...silly me, how could I have made such a mistake.. biggrin 

Quoting ThegreatRDU (Reply 24):
Is this good or bad?

Good.. Smile



"Up the Irons!"
25 FlyPNS1 : It does give AA more flexibility, but until the renegotiate the scope clause with APA, not much will change.
26 AJMIA : Also have to wonder how this will effect AA and Eagle employee nonrev benefits on each others flights. I hope D3s on each others flights dont go away.
27 FlyASAGuy2005 : I don't see why not. AE is already such a large operation, I don't see why they won't be ok by themselves. It's not like it's an Independence Air out
28 EXAAUADL : NOPE that would be illegal Yup
29 FlyASAGuy2005 : Ok, so let's start the rumors and speculations. Who do you guys have as potential buyers? I say Mesa and possibly Skywest. But I am not sure if they h
30 ERJ170 : Eagle is going to have to do something.. the days of the 50 seat RJ are dying out.. yes, there will be markets where the 50 seat RJ will work (and so
31 FlyASAGuy2005 : As a side note, I would also like to add that my prefered outcome would be to see AE start their won holding company but what would that take. A group
32 EXAAUADL : youre right but APA isnt always living in the present
33 Xtoler : Had to go there didn't ya? Okay, it was on the tip of my mind too, only if it got the CRJ7's. Although I think some of the Eagle 145's did go to Amer
34 STT757 : Perhaps Expressjet could go down to Miami, or better yet drop DL in favor of AA out of LAX.
35 N1120A : No, because that is still based on AA's pilot contract.
36 PSU.DTW.SCE : Here's my take on this matter: AA has a huge obligation over the next decade to begin to replace a significant portion of their mainline narrowbody fl
37 MAH4546 : What they need in Miami is a regional operator with 70-90 seaters, like the E-170, to fly routes like MIA-PVD/BUF/ROC. AA doesn't have the right plan
38 Ckfred : What this does for Eagle, in the long run, is allow it to go after flying for other mainline carriers. And if it does get regional flying for other ca
39 EXAAUADL : I am surprise no one has said the eagle spin off it so AMR can raise cash to merge with someone
40 AABB777 : Right now there is too much speculation. I hope more details emerge over the next few days & weeks. I'm trying to get more info from my folks. My hope
41 Hiflyer : First off this is about two things IMHO A Get the high casm operation off the AMR books while it may still have some value...DL has done it with ASA f
42 Ebs757 : Just called mom on the plane to she if shes heard the news and of course she has. She said thats all her and her colleagues have been talking about to
43 Iwannagothere : Does anyone think this will be bad for AA fliers? Eagle would have to cut many lower profit routes eg. carribean ect. and how could AE work for airlin
44 EGFCabinCrew : From Peter Bowler: SPECIAL EAGLEWIRE FOR NOVEMBER 28, 2007 Published Especially for the Employees of American Eagle * * * * PLEASE POST ON ALL BULLETI
45 MAH4546 : Huh? The Caribbean operations are some of the most profitable in the whole system. Eagle gets $220+ round-trip easily for Miami-Nassau, and the fligh
46 Post contains images Hiflyer : Corporate Speak for do your jobs and don't pay attention to the 'water' rising down in the lower decks.
47 RedTailDTW : I think this is good for American. Gives them a chance to operate with different carriers and allows American Eagle to get contracts with other major
48 MAH4546 : The American Eagle brand name is perhaps the strongest and most well-known of any regional airline. I would assume that American's regional flights o
49 Quickmover : I wonder if this is good news, bad news or no news for cities like STL, that are mostly Eagle?
50 Jetdeltamsy : Bingo. The Bain study at Eagle showed that AA could farm out the flying to other contract carriers for between $20 and $150 millioin less per year th
51 MAH4546 : It's good news, IMO. It will result in more regional flying, especially at MIA and LAX, IMO. However, St. Louis is not Eagle. There are barely any Ea
52 Post contains images Jacobin777 : ...I wonder if there is some kind of "work around" with this situation... .....regardless, I agree, it will take some negotiating with the APA. ...ma
53 Viscount724 : According to AA's website, the "American Eagle" name is owned by AA (presumably a registered trademark) so it's up to AA who can use it.
54 ATWZW170 : Of course Mesa is going to be all over it -- AA had better think twice. Republic for sure -- maybe even Express jet. But what about Air Wisconsin? We
55 MAH4546 : Perfect opportunity for them, especially since they will have most likely have 42 aircraft freed up by the end of 2008. They need to go somewhere...
56 STT757 : What 42, the ones already removed from COEX flying currently flying under DL Connection and Expressjets own titles?
57 Highliner2 : I believe that part of the agreement fell apart a few days/weeks ago. It's gone last I heard...can anybody confirm?
58 VV701 : My initial thoughts when reading the thread starter were that AA is going down the same route as BA. To that in my mind I added the recent statement
59 MAH4546 : The 42 (I believe that's the number) flying their money bleeding independent operations.
60 CIDflyer : Would the American Connection flights out of STL by Trans States and Chautaqua be allowed to use the American Eagle name after all is said and done?
61 Cubsrule : It's 4 (an SGF turn and a BNA turn on a 135... the aircraft overnights at SGF and flies BNA-JFK in there as well). Does MQ own all of its aircraft?
62 Eghansen : Not possible. Federal law limits foreign ownership to 25% of total outstanding stock. Virgin America's startup was delayed to questions about its for
63 Highliner2 : The ownership laws regarding foreign companies buying US carriers are not going to change, ever. Anyone who saw the backlash that exploded when the r
64 Super80DFW : So what does this mean for American Eagle? Will they have their own reservations website? Will they still sell on AA.com? Will American try to get oth
65 Cubsrule : Well, let's be careful here, since EGF has two operating certificates (MQ and OW).
66 STT757 : Yeah that makes alot of sense, the whole "independent" experiment has already been proven a failure by "Independence". I would also think Express wou
67 Viscount724 : I didn't say American Eagle was owned by AA, just the name. If AMR owns the name and not AA, they should correct their website where they list their
68 Commavia : Many reactions to this unexpected, but not surprising, news: First and foremost, I think many knew that this was probably where thing were eventually
69 Swissy : Yep Remember how it went over 10 years ago and WFS was born..... Yep thats what they announced to all the AMR employees which had no choice other tha
70 Commavia : I highly, highly doubt that. There is - in my opinion - no way that AMR/AA will spin off the American Eagle brand/trademark with this new stand-alone
71 VV701 : If you read what I said very carefully you will see that I did not use the word "merger". Instead I used the word "partnership". There are, of course
72 QXatFAT : Wow this is crazy! At least just from an average joe's perspective. So how would this have effects on airports like FAT? I mean we have Skywest (Unite
73 AA7295 : What effect will this have on oneworld.. Isn't AE and affiliate member of oneworld?
74 RFields5421 : Yes, but the board does not operate independent of the CEO's input - from company direction to compensation. It's a dirty little secret in corporate
75 Eghansen : Whether there is one or two operating certificate is not really material. Executive Airlines is a wholly owned subsidiary of American Eagle Holdings
76 Cubsrule : I agree with you... I was just trying to be 100% clear since it's a bit of a confusing area for a lot of people.
77 OBSMGR : What would Republic gain by bidding on anything from Eagle? They have publicly stated their growth model is in the 70+ seat aircraft, which Eagle can
78 RFields5421 : Isn't American / AA.com just a front-end portal to Sabre ?
79 Commavia : Not really. The actual trademark of the 'American Eagle' brand are pretty much worthless to American Eagle unless they are still flying for AA 10 or
80 Highliner2 : Your original post asked why no one had responded to the post by ERJ170 which stated: Buyout, merger, aquisition, whatever. Perhaps the reason no one
81 Cubsrule : It's not really curious at all... the answer to it all is LHR. ATI for AA and BA would be unfair, considering the size of their combined operations a
82 WhatUsaid : Eagle's LF out of FAT, even with the multiple code-shares, isn't that great - usually in the bottom 1/3 of the carriers in the market (right FATFlyer
83 MAH4546 : Zero effect. Consumers will never notice the changes, just like they didn't notice the changes when ExpressJet was spun off from Continental.
84 Eghansen : I think that you miss the purpose of the divestiture. American has 298 MD-80s with average age of 17.8 years. These MD-80s use something like 40% mor
85 MAH4546 : You are sounding like an AA pilot. Talk about over-exaggeration! AMR has problems to fix, but they aren't that bad.
86 OBSMGR : Paid For. Paid For. and... Paid For. It seems I can think of at least one other carrier in the US that operates an older fleet of PAID FOR aircraft w
87 Commavia : No, I got the purpose just fine, trust me. Um, yes, they do have precisely that luxury. That's what happens when you own something. You can pick and
88 Post contains links Eghansen : What follows are direct quotes from AMR Corporation's 2006 Annual report on file with the SEC. You can read this filing at http://www.sec.gov/Archives
89 Post contains images Commavia : AMR has just secured a financial transaction to bring back some of its planes that were previously encumbered after refinancing and prepaying a major
90 VV701 : Foreign ownership no more automatically equates to increased employment and general prosperity than does domestic ownership. However foreign ownershi
91 AAL0616 : The position of the company relative to its competitors is not desperate at all. Divesting Eagle is a logical strategic decision. As Mark points out,
92 Aaway : Tend to agree here, which is why I believe this transaction, if consummated, is more than just a response to shareholders. Of the 284 AMR-owned Eagle
93 Aaway : Yes, its unfortunate that both AA and UA have priced the point-to-point intra-California prop flying into oblivion - that's what kills the yields. Ho
94 Commavia : I think Horizon might be the answer. There were rumors a few months back about AA maybe shifting all of their LAX feed over the Horizon turboprops an
95 Aaway : I had been planning on starting an AE/LAX rumors thread, but the news of a possible divestiture is more encompassing. Regarding QX, apparently QX sta
96 Commavia : Wouldn't be surprised, although, given the same costs - would you rather be putting passengers on brand new Q400s or 15-year-old SAABs? A fair point.
97 Post contains images Jacobin777 : ...its common knowledge that many of the board members are in co-hoots with management...however, to say that Arpey is going to cut a bonus check to
98 Apodino : The timing of this is very interesting. I have read lots of posts stating something about bigger jets and pilots relaxing scope clause. I find it very
99 Aaway : Certainly wouldn't be viable from an AA marketing perspective...business oriented, high frequency, etc, etc. Then again, it appears that current SAAB
100 Post contains links Eghansen : Yes I know what conservatism is and isn't. But it has very little to do with American Airlines financial situation. All accountants working for all t
101 Commavia : They're also paying nothing in ownership costs on them, which helps. They have plenty of money, should they want to spend it. AMR is now sitting on a
102 Ckfred : But, compared to other airlines, AMR/AA/AE management is paid less. At least that is what the Wall Street Journal said in criticizing AA's unions for
103 VictorKilo : Here's how I see things going down: Eagle withdraws from all California-based flying. American signs a codeshare agreement with Horizon, which will op
104 Hiflyer : Possibly look like fiction...Open Skies is not changing ownership rules....otherwise everyone in the cafeteria at United would have learned German by
105 Commavia : The current AMR/AA (mainline) SCOPE clause doesn't have a specific restriction of the number of frames to be operated. All that it says is that AMR's
106 ERJ170 : How about "at risk" flight? Say if Republic wanted to do some at risk flying using E70s as American Eagle or American Connection or American Regional
107 Commavia : Illegal - per the contract - on both counts. It doesn't matter whether the flying is at-risk by the operator or not, if its 51 seats or more, with Fi
108 Hiflyer : Thanks Commavia....suprised APA effectively dropped the limits on frames for 50 seaters....however the 25 limit on frames for 70-90 is a huge problem.
109 Commavia : It's because AA didn't foresee what as coming. Back in 2003, even with fuel prices at those 2003 levels, they still saw the 50-seaters as viable, and
110 Cubsrule : Interesting suggestion. The fact that AX reduced the at-risk PIT flying very little even with the drastic US cuts at PIT suggests (not conclusively)
111 Revelation : And I'm sure they are a bunch of independent thinking mavericks - NOT!
112 ERJ170 : Well, here is my idea of what American Eagle should do.. just to throw it out there.. *wink* They have 308 aircraft. 1. Try to commit 151 aircraft (Sa
113 Post contains images MAH4546 : Yes, because ExpressJet's branded ops are doing so well and have a successful future ahead of them, MQ should copy. I think Xjet has taught regional
114 ERJ170 : Well, as the old saying goes.. if at first (and second), you don't succeed.. try, try, try again.. at some point.. someone will get it right.. and at
115 FATFlyer : Correct, although on the other side of the coin the AA mainline flights FAT-DFW are among the highest load factors at Fresno. To me that means the pa
116 Incitatus : I am sorry but this is the wrong definition of being bankrupt. Bankrupt is a party who is unable to continue to pay their creditors. Accounting is no
117 VV701 : Outside of the USA if not inside a 'partnership' does not require 'ownership' of any kind. Consider, for example, BA and QF. In the not too distant p
118 AJMIA : This is an excellent hypothesis. I hope AA and APA are smart enough to emulate it in reality. If AA did this they could bring a lot of the current Ea
119 Post contains images Commavia : Well, I've always thought that would be a better solution. I have long thought that merging Eagle into mainline long-term was a smart solution. Sure,
120 AAL0616 : Someone at the higher end of the food chain flying left seat in a 777 or 767/757 is secure and does not mind. In fact, your concept about the lists a
121 Commavia : It wasn't just advocated by some. Back a few years ago - around I believe 2000-2001 - it was actively being pursued by APA. Back then, after the '97
122 Jacobin777 : ..so what? The comment that Arpey will be giving himself a bonus is incredulous..though the Board usually favours management it's not that way all of
123 Cubsrule : There's an interesting second dynamic at work here... while MQ can have really lousy on the ground service, the product in the air is generally prett
124 QXatFAT : Thanks WhatUsaid for the info and opinion. I would think it might be smart for them to pull the flights as well but then we could see fairs hike up b
125 FATFlyer : Possibly, or maybe an additional FAT-DFW. The key question is the one you asked, what are the connecting numbers for AA from the Eagle flights. My pe
126 OB1504 : Independence Air flew in direct competition with United Airlines out of one of their hubs. Xjet is playing it smart, flying under the radar on largel
127 Post contains images AA717driver : I know this is old news now, but here's my $.02 (or .01 GBP... ) -- Other than we airline geeks, no one cares who's RJ they fly on. It's still a high-
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