MaverickM11
Topic Author
Posts: 15453
Joined: Thu Apr 06, 2000 1:59 pm

AA Interest In Selling Eagle?

Fri Mar 25, 2005 12:59 am

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
 
ssides
Posts: 3248
Joined: Fri Feb 09, 2001 12:57 am

RE: AA Interest In Selling Eagle?

Fri Mar 25, 2005 1:08 am

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!!!!
 
MaverickM11
Topic Author
Posts: 15453
Joined: Thu Apr 06, 2000 1:59 pm

RE: AA Interest In Selling Eagle?

Fri Mar 25, 2005 1:13 am

"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
 
ckfred
Posts: 4762
Joined: Wed Apr 25, 2001 12:50 pm

RE: AA Interest In Selling Eagle?

Fri Mar 25, 2005 1:18 am

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.
 
MaverickM11
Topic Author
Posts: 15453
Joined: Thu Apr 06, 2000 1:59 pm

RE: AA Interest In Selling Eagle?

Fri Mar 25, 2005 1:39 am

"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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