LAXintl
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AMR To Delay Eagle Spinoff

Sat Nov 19, 2011 6:58 pm

Well one of the outcomes of this weeks AMR BoD meeting seems to be the decision to delay divestiture of Eagle which was planned for by the end of the year.

AMR now states it hold off on the divestiture until early next year after an agreement has been concluded with the pilot group. Back in October a T/A was reached with Eagle's ALPA unit, however the agreement has yet to be formalized and put out for a vote by members.

Story:
AMR to delay Eagle spinoff until deal is reached with pilots
http://www.star-telegram.com/2011/11...-to-delay-eagle-spinoff-until.html


I suspect AMR has some concerns about the T/A passing, which would cloud the future of a stand-alone Eagle entity and leave it with a uncompetitive high cost base.
From the desert to the sea, to all of Southern California
 
747fan
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RE: AMR To Delay Eagle Spinoff

Sat Nov 19, 2011 9:35 pm

Problem with Eagle as a stand-alone is that they probably have the highest cost base among their regional peers. Also lots of 40-50 seaters.
 
PlaneAdmirer
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 1:59 am

Not to be too negative, but why bother if they are going to file anyway? The bankruptcy court can deal with this and AA can put flights out to bid with other regional carriers and if Eagle can compete great. If not, then another carrier does the work.
 
toltommy
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 3:42 am

Quoting PlaneAdmirer (Reply 2):

Not to be too negative, but why bother if they are going to file anyway?

Because if you file now, you can put Eagle thru it as well. Eagle can be the next Comair, or they can go thru CH11 and come out as a competitive regional carrier.
 
LAXdude1023
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 3:50 am

Quoting TOLtommy (Reply 3):
Because if you file now, you can put Eagle thru it as well. Eagle can be the next Comair, or they can go thru CH11 and come out as a competitive regional carrier.

That was my thought as well.

There is too much going on with AA right now to think Chapter 11 is any longer far fetched. I think keeping Eagle attached is part of a plan to go through Chapter 11.
It is what it is...
 
LAXintl
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 4:11 am

I don't know.

Seems to me AMR prefer to get consensual deals if possible, and its almost there with the Eagle group.

It would be rather nasty in BK court fighting 2 sets of pilots, 2 sets of F/A's, 2 sets of mechanics, 2 sets of airport folks if you don't have to.
From the desert to the sea, to all of Southern California
 
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Acey559
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 4:26 am

I'm curious to see how this plays out. Eagle may have higher costs but we're still profitable and taking steps to reduce costs. We're pretty far along on our TA and it's being put into contractual language right now. From what I've read, it looks like a decent contract with some nice enhancements (profit sharing, more job security). I know nothing in this industry is certain or secure, but this contract seems to at least address some of those issues. I'll be keeping my eyes open for more info on JetNet Monday.
 
xdlx
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 12:25 pm

Quoting LAXdude1023 (Reply 4):

My theory is that the A320 are earmarked for Eagle.... I f you read between the lines they want UNLIMITED
domestic codeshare.... And many think this is where B6 plays their part. Instead of loosing the seamless
Eagle product connection, they have ordered the A320 that AA mainline pilots refuse to fly.

Unless the New mainline agreements show payscales for the A320 .... my theory is AMR wants these in the
Eagle certificate.
 
hiflyer
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 2:04 pm

The problem may be shortage of buyers....pending Chapt 11...if I was going to buy into Eagle off AMR why not wait until after filing and get it at a reduced cost both labor and overall?
 
rfields5421
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 4:33 pm

Quoting PlaneAdmirer (Reply 2):
but why bother if they are going to file anyway?

Then Eagle would have no value.

Quoting hiflyer (Reply 8):
...if I was going to buy into Eagle off AMR why not wait until after filing and get it at a reduced cost both labor and overall?

After a Chapter 11 of AMR including Eagle - the smaller airline may not exist.

If Eagle is the high cost operation most folks on this forum think - the BK court could decide to liquidate that part of the company. Then AMR gets nothing for Eagle, and has to suddenly start finding a regional carrier. If Eagle were liquidated, it would tighten up the market for regional carriers, raising costs for any new ones added to support AA.

If Eagle is separated before BK, then AA has an intact regional network. The BK court could impose lower fees upon the Eagle contract - but the biggest advantage for AA is to have Eagle as a separate carrier and have a BK court break the scope clause with the mainline pilots.

Completing the sale of Eagle would provide cash needed for going through BK with a plan to keep the same management and most of the board of directors.

We've seen that before - Delta's sale of Atlantic Southeast just before they declared BK.

Most folks seem to think that the Delta BK worked well - so there is no reason to be surprised if AA follows the same tactics.
 
masseybrown
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 6:34 pm

Quoting hiflyer (Reply 8):
The problem may be shortage of buyers....

That's why they're considering a spin-off. You don't need a buyer - just stand Eagle on its own and issue Eagle shares to your current stockholders, splitting the two companies. Based on the current AMR stock price, however, nobody but bottom-fishing speculators wants to own either company.

The company probably thinks the delay gives them greater leverage (or at least more options) in both labor negotiations and a possible Chap 11.
 
N62NA
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 7:38 pm

Quoting xdlx (Reply 7):
My theory is that the A320 are earmarked for Eagle.... I f you read between the lines they want UNLIMITED
domestic codeshare.... And many think this is where B6 plays their part. Instead of loosing the seamless
Eagle product connection, they have ordered the A320 that AA mainline pilots refuse to fly.

Unless the New mainline agreements show payscales for the A320 .... my theory is AMR wants these in the
Eagle certificate.

A couple of questions:

1) Is it true that AMR mainline pilots refuse to fly the A320?

2) What is the connection being made in the xdlx quote above between JetBlue and Eagle?
 
SPREE34
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 8:31 pm

Quoting N62NA (Reply 11):
Is it true that AMR mainline pilots refuse to fly the A320?

No. They refuse to fly anything without a negotiated pay scale. Negotiate a pay scale and they don't care who builds it.
I don't understand everything I don't know about this.
 
N62NA
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 8:54 pm

Quoting SPREE34 (Reply 12):
They refuse to fly anything without a negotiated pay scale. Negotiate a pay scale and they don't care who builds it.

So if I understand the original comment re: AMR wanting Eagle to fly the A320s, the original point is that since there currently is no agreement for AMR mainline to fly the A320s, therefore it is possible Eagle will fly them? If I have that correct, that would seem to be a HUGE issue (and precedent).
 
rfields5421
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RE: AMR To Delay Eagle Spinoff

Sun Nov 20, 2011 10:46 pm

Quoting N62NA (Reply 13):
the original point is that since there currently is no agreement for AMR mainline to fly the A320s, therefore it is possible Eagle will fly them?

It is no different than introduction of a new aircraft type into any airline.

Before the first A380 went to Singapore - the pilots and company had to agree on a pay scale for that frame.

The A320 is new to AA and should be paid are about the same rate as the B738 in my opinion. It is not that AA and the pilots disagree - they both simply have much more important things on their contract negotiations right now than an aircraft which isn't due for a few years. True AA might be wanting them to fly the A320 for much lower pay rates than the B738.

Is the A320 that much of a 'lower' class aircraft than the B738? I don't think so.

There is no way Eagle would fly AA A320 aircraft. For one thing - the Eagle pilots don't have an A320 pay scale in their contract either, and it would certainly be a big bump in pay compared to the CRJ7 which is their top aircraft currently.

For another - adding a 150-180 seat class aircraft to regional carriers has never been done. It would change Eagle from a feeder for AA to a competitor of AA.
 
flyby519
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 12:51 am

APA would go postal over Eagle flying an E170/190 let alone an A320. Absolutely no freakin way that will happen. The actual proposal linked here:

http://aanegotiations.com/documents/...iveProposal_ExecutiveSummaries.pdf

talks about how AA wants more domestic feed at JFK, it is assumed that feed would be from B6 considering they are a very large domestic carrier in JFK that could provide feed tomorrow if APA would go with a codeshare.
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N62NA
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 5:20 am

Quoting rfields5421 (Reply 14):
For another - adding a 150-180 seat class aircraft to regional carriers has never been done. It would change Eagle from a feeder for AA to a competitor of AA.
Quoting flyby519 (Reply 15):
APA would go postal over Eagle flying an E170/190 let alone an A320. Absolutely no freakin way that will happen

Right which is why this:

Quoting xdlx (Reply 7):
Unless the New mainline agreements show payscales for the A320 .... my theory is AMR wants these in the
Eagle certificate.

makes no sense to me.
 
Sean-SAN-
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 5:29 am

If anyone thinks Eagle will be flying anything bigger than the CR7, keep dreaming. BK courts can impose contracts, but the unions can decide to strike, or knowing APA and the FA union, they will just clusterfy things so badly that the company would never exit bankruptcy as a viable business.
 
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enilria
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 2:07 pm

Quoting LAXintl (Thread starter):
I suspect AMR has some concerns about the T/A passing, which would cloud the future of a stand-alone Eagle entity and leave it with a uncompetitive high cost base.
Quoting PlaneAdmirer (Reply 2):

Not to be too negative, but why bother if they are going to file anyway? The bankruptcy court can deal with this and AA can put flights out to bid with other regional carriers and if Eagle can compete great. If not, then another carrier does the work.

I have to agree. If they are going to file they can toss the Eagle contracts and unwanted Eagle airplanes and make it a profitable entity again to either sell or retain.
 
Jamake1
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 2:33 pm

The company just put out a press release announcing that they have selected the A319 and A321 variants from their large Airbus order...

http://finance.yahoo.com/news/Americ...ses-prnews-3879295634.html?x=0&l=1
United's B747-400. "She's a a cruel lover."
 
rfields5421
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 2:37 pm

And Nero continues to fiddle while the town burns down around him.
 
xdlx
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 3:25 pm

Quoting N62NA (Reply 16):

Rome is burning!......... run for the exits!
 
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lightsaber
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 3:49 pm

Quoting rfields5421 (Reply 9):
If Eagle is the high cost operation most folks on this forum think - the BK court could decide to liquidate that part of the company.

AA needs *some* regional feed. AA needs BK to cut Eagle's costs. This won't be fun for anyone at AA.

Lightsaber
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MoltenRock
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 4:14 pm

Given the massive overhaul of the American bankruptcy court / proceedings, I think many here fail to understand that today's BK is much different than those done under the old laws (Ie... Delta, NWA). No major legacy has filed since the new laws went into effect, and quite frankly, the next one who does may not emerge. Running a prepackaged BK thru the system today, isn't like what it was just a few years ago.
 
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enilria
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 4:27 pm

Quoting jamake1 (Reply 19):
The company just put out a press release announcing that they have selected the A319 and A321 variants from their large Airbus order...

That's surprising because I'm hearing that the economics for the A319 are deteriorating.
 
MoltenRock
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 4:42 pm

Quoting enilria (Reply 24):
That's surprising because I'm hearing that the economics for the A319 are deteriorating.

Huh? Compared to what?  
 
flyby519
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RE: AMR To Delay Eagle Spinoff

Mon Nov 21, 2011 5:12 pm

Quoting enilria (Reply 24):
That's surprising because I'm hearing that the economics for the A319 are deteriorating.

Economics of the 319? Or labor economics that AMR thought they would get APA to agree to for the 319?
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LAXintl
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RE: AMR To Delay Eagle Spinoff

Wed Nov 30, 2011 5:33 pm

Well following the BK filing, per Tom Horton the Eagle divestiture will the back seat as AA works out its larger strategic plans.

AE CEO Dan Garton told employees the bankruptcy filing means that the spin-off of American Eagle "is put on hold", however AE still plans to make changes to its union contracts "to ensure we are providing American with cost competitive feed"
From the desert to the sea, to all of Southern California
 
Squid
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RE: AMR To Delay Eagle Spinoff

Wed Nov 30, 2011 8:22 pm

I wonder if there is any chance of getting the pilots at AA to agree to allow AE to fly planes up to 90-100 seats? If the pilots would agree to it, it would change the game in a HUGE way and give AA the competitive advantage they so badly need in ORD and LAX. In return AA could set up a flow through agreement to the pilots at AE into AA and keep AE in the AMR family.
 
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Acey559
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RE: AMR To Delay Eagle Spinoff

Wed Nov 30, 2011 8:25 pm

Quoting Squid (Reply 28):
In return AA could set up a flow through agreement to the pilots at AE into AA and keep AE in the AMR family.

We already have a flow-through agreement in place. I don't know if APA would let us fly anything that big, but now would be the time to try, I suppose. I'm going to be at the flight academy tomorrow so I'll ask around and see if I can scrounge anything up other than the sparse info available on aa.com and JetNet.
 
emseeeye
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RE: AMR To Delay Eagle Spinoff

Wed Nov 30, 2011 8:37 pm

Quoting jamake1 (Reply 19):
The company just put out a press release announcing that they have selected the A319 and A321 variants from their large Airbus order...

http://finance.yahoo.com/news/Americ...0&l=1

"We are aggressively moving forward with our plans to have the youngest, most fuel-efficient fleet in the U.S. in the next five years," said Tom Horton , President of AMR and American Airlines.

5 years??? That's rather aggressive.
 
masseybrown
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RE: AMR To Delay Eagle Spinoff

Thu Dec 01, 2011 2:44 pm

I could see AMR taking a more radical approach and, if they can get a decent deal from APA, merge Eagle into mainline.

Alternatively, if they can't get a good deal, they could dissolve Eagle; they haven't got much to lose if they do.
 
norcal
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RE: AMR To Delay Eagle Spinoff

Thu Dec 01, 2011 3:14 pm

Quoting Squid (Reply 28):

I wonder if there is any chance of getting the pilots at AA to agree to allow AE to fly planes up to 90-100 seats? If the pilots would agree to it, it would change the game in a HUGE way and give AA the competitive advantage they so badly need in ORD and LAX.

Over APA's dead body. This would easily mean a thousand + furloughs for mainline pilots. United parked their entire 737 fleet and replaced it with CRJ-700s and E-170s and those are just 70 seat aircraft. 90-100 seat aircraft at Eagle would be devastating to mainline.

These 90-100 seat "regional" jets don't need to be flown at poverty wages to be profitable, management just wants them flown at poverty wages.

Quoting Squid (Reply 28):
In return AA could set up a flow through agreement to the pilots at AE into AA and keep AE in the AMR family.

There already is a flow through agreement. Anyone on the Eagle seniority list prior to 10/12/11 (+/- a few days) has a guaranteed job at mainline.
 
PlaneAdmirer
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RE: AMR To Delay Eagle Spinoff

Thu Dec 01, 2011 3:36 pm

Quoting norcal (Reply 32):
Over APA's dead body.

APA gave up raises and keeping their pensions largely intact because they hated Arpey and management and now they hire Lazard to represent them. Maybe they should have hired Lazard to review the financial condition of AA prior to rejecting the last agreement and confirming the outcomes of the other airline bankruptcies. Lazard has a very good bankruptcy practice and could have told APA what to reasonably expect. There are other creditors besides the unions who have a greater investment in AA's survival.
 
norcal
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RE: AMR To Delay Eagle Spinoff

Thu Dec 01, 2011 3:46 pm

Quoting PlaneAdmirer (Reply 33):

Even if APA had accepted the last offer from AMR it wouldn't have prevented a bankruptcy. AMR would simply have used that concessionary agreement as a starting point to get more concessions. The pensions would have disappeared regardless of accepting the agreement or rejecting it.

That offer from AMR would't have solved the mountain of debt that's been accumulated over the years.
 
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jfklganyc
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RE: AMR To Delay Eagle Spinoff

Thu Dec 01, 2011 4:55 pm

"There already is a flow through agreement. Anyone on the Eagle seniority list prior to 10/12/11 (+/- a few days) has a guaranteed job at mainline."

That's overly simplistic.

The flow through has been anything but simplistic.

Nobody has a guaranteed job anywhere until they are sitting in the FO seat doing IOE.

The renewed flowthrough deal was just enough to get Eagle ALPA to put down their boxing gloves for the sale of Eagle.

Don't bet on those guys flowing over or AA growing enough to absorb them anytime soon.
 
xdlx
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RE: AMR To Delay Eagle Spinoff

Sat Dec 03, 2011 11:46 pm

Quoting jfklganyc (Reply 35):

The reasoning I do not understand is: Eagle allready flies 40% of the domestic traffic. If they could replace
350, E140/45 with 150-175 CR9 or E190. No one is takiing anything away from mainline, they are rightsizing
the fleet since the 50 seaters are not liked as much as the 2nd Gen of Regional Jets.
What is wrong with this concept?
 
flyby519
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RE: AMR To Delay Eagle Spinoff

Sun Dec 04, 2011 1:25 am

Quoting xdlx (Reply 36):

The reasoning I do not understand is: Eagle allready flies 40% of the domestic traffic. If they could replace
350, E140/45 with 150-175 CR9 or E190. No one is takiing anything away from mainline, they are rightsizing
the fleet since the 50 seaters are not liked as much as the 2nd Gen of Regional Jets.
What is wrong with this concept?

The issue is the E190 would take a lot of current MD80 routes, and that means a reduction for mainline labor group.
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xdlx
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RE: AMR To Delay Eagle Spinoff

Sun Dec 04, 2011 4:00 pm

Quoting flyby519 (Reply 37):

The E190 is not on the property and the MD80 attrition has already started.

Again no relation one to the other.... the MD80 (mainline is going out the door) because it is no longer efficient.

American should be a trendsetter with scope, I do not understand why Legacy carriers cannot addopt the
UPS system of a simple scale.

A 1,3,5,10 years scale with CAPT and F/O payscale. Then according to Seniority you bid BASE and EQPT
 
flyby519
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RE: AMR To Delay Eagle Spinoff

Sun Dec 04, 2011 9:25 pm

Quoting xdlx (Reply 38):
The E190 is not on the property and the MD80 attrition has already started.

Again no relation one to the other.... the MD80 (mainline is going out the door) because it is no longer efficient.

American should be a trendsetter with scope, I do not understand why Legacy carriers cannot addopt the
UPS system of a simple scale.

A 1,3,5,10 years scale with CAPT and F/O payscale. Then according to Seniority you bid BASE and EQPT

I think that would be great, but if you notice the size of equipment that UPS operates (757/767/747/MD11/A300) they are all relatively equal in terms of revenue generating potential. If AA wants to adopt a similar payscale then they would be limited, and wouldnt be able to operate a comprehensive fleet from E170s up through 777s on the same payscale.

Whatever scope changes are made, it will affect the MD80 routes. More CRJ700s, CRJ900s, ERJ170/190s, will all result in reductions for the MD80. Yes, the only aircraft being used for feed is the CRJ700, but in limited quantities. Another 50-75 CRJ700s would mean less MD80 flying no doubt.
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xdlx
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RE: AMR To Delay Eagle Spinoff

Sun Dec 04, 2011 10:17 pm

Quoting flyby519 (Reply 39):

Not if they replace 100 E145.

The growth on this industry in the last 10 years is in the Regional level as the 30seat turboprop was replaced by RJ's.
But Legacy carriers also parked the 727 after 9/11and utilizing the narrow margins Scope allowed;
succesfully replaced most of the short haul flying mainline use to do with CRJ/ERJ.

Assume there was a claused that said we are replacing one CR7/CR9 for two E145. No MD88 affected.
 
flyby519
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RE: AMR To Delay Eagle Spinoff

Sun Dec 04, 2011 10:29 pm

Quoting xdlx (Reply 40):
Assume there was a claused that said we are replacing one CR7/CR9 for two E145. No MD88 affected.

True, that is something that I could have seen under APA/mgmt negotiations pre-BK, but I dont know if that is realistic under the current BK process since the majority of other legacies have much looser scope clauses. I guess we will see what happens in the courts during the next 18-24 months!
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LAXintl
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RE: AMR To Delay Eagle Spinoff

Thu Dec 15, 2011 6:24 pm

Changes are afoot.


The December 5th Eagle pilot class was cancelled with the 20-students places on furlough.

Additionally AMR notified the Texas Workforce Commission that 119 pilots, and 104 flight attendants based in Dallas could see their positions lost around February 13th.

Story:
AMR's American Eagle may cut 223 jobs in February
http://www.google.com/hostednews/ap/...d=87e2a1ea6e0b4c7eb3564a9dfd04cd76

=
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LAXintl
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RE: AMR To Delay Eagle Spinoff

Tue Dec 20, 2011 5:16 pm

Another axe falls. Rumored ATRs cuts come true.

21 ATR-72s in total parked and DFW hub ATR flying pulled by January 31st.
Leaves 18 ATRs for MIA/SJU operations.


American Eagle to stop ATR service out of DFW, drop some routes
http://aviationblog.dallasnews.com/a...merican-eagle-to-stop-atr-ser.html

=
From the desert to the sea, to all of Southern California
 
LAXdude1023
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RE: AMR To Delay Eagle Spinoff

Tue Dec 20, 2011 5:19 pm

Quoting LAXintl (Reply 43):
21 ATR-72s in total parked and DFW hub ATR flying pulled by January 31st.
Leaves 18 ATRs for MIA/SJU operations.

It should be noted that the only DFW routes cut are Augusta, GA and Fayetteville, NC. All the ATR routes here will be served with ERJ's.
It is what it is...
 
hiflyer
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RE: AMR To Delay Eagle Spinoff

Tue Dec 20, 2011 10:33 pm

"All the ATR routes here will be served with ERJ's."

Hmmm...common belief is turboprops more efficient than smallish rj's...so grounding the props for small rj's is gonna help the bottom line during Chapt 11??      
 
flyby519
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RE: AMR To Delay Eagle Spinoff

Wed Dec 21, 2011 12:08 am

Quoting hiflyer (Reply 45):
"All the ATR routes here will be served with ERJ's."

Hmmm...common belief is turboprops more efficient than smallish rj's...so grounding the props for small rj's is gonna help the bottom line during Chapt 11??

I bet the ERJs will only be on the routes until they find a turboprop replacement for Eagle or another carrier to fly.
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coronado
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RE: AMR To Delay Eagle Spinoff

Wed Dec 21, 2011 2:36 am

At least for towns with 3-4 hours driving time to DFW, why even try and find a turboprop replacement or put small jets in? Those towns in in Texas are a completely captive market that in the absence of air service will have no choice but to drive to DFW. Who else would serve those towns? Certainly nobody who would fly them to DFW, unless American agrees to work with them. WN does not have any feeder service to LUV, perhaps United to IAH but they have things of their own to digest including right sizing their regional feed and there are no other hubs in within 1000 miles, and Delta is long gone from DFW. Easy way to park some small lift and while they may grumble those pax have no choices but to drive to catch an AA mainline.
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LAXdude1023
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RE: AMR To Delay Eagle Spinoff

Wed Dec 21, 2011 2:51 am

Quoting Coronado (Reply 47):
At least for towns with 3-4 hours driving time to DFW, why even try and find a turboprop replacement or put small jets in? Those towns in in Texas are a completely captive market that in the absence of air service will have no choice but to drive to DFW. Who else would serve those towns? Certainly nobody who would fly them to DFW, unless American agrees to work with them. WN does not have any feeder service to LUV, perhaps United to IAH but they have things of their own to digest including right sizing their regional feed and there are no other hubs in within 1000 miles, and Delta is long gone from DFW. Easy way to park some small lift and while they may grumble those pax have no choices but to drive to catch an AA mainline.

A lot of those towns preform very well for Eagle and they would be foolish to let them go. GRK is probably the crown Jewel of the Turbo prop Texas cities, but ACT, TYR, SPS, and ABI all do nicely as well. Im not sure about GGG.
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crAAzy
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RE: AMR To Delay Eagle Spinoff

Wed Dec 21, 2011 6:07 am

Quoting LAXdude1023 (Reply 48):
A lot of those towns preform very well for Eagle and they would be foolish to let them go. GRK is probably the crown Jewel of the Turbo prop Texas cities, but ACT, TYR, SPS, and ABI all do nicely as well. Im not sure about GGG.

Not to mention they have a very large competing hub in houston that would be happy to upgauge those markets.

Quoting Coronado (Reply 47):
At least for towns with 3-4 hours driving time to DFW, why even try and find a turboprop replacement or put small jets in? Those towns in in Texas are a completely captive market that in the absence of air service will have no choice but to drive to DFW. Who else would serve those towns? Certainly nobody who would fly them to DFW, unless American agrees to work with them. WN does not have any feeder service to LUV, perhaps United to IAH but they have things of their own to digest including right sizing their regional feed and there are no other hubs in within 1000 miles, and Delta is long gone from DFW. Easy way to park some small lift and while they may grumble those pax have no choices but to drive to catch an AA mainline.

Not quite so captive as other airlines (e.g. UA via IAH or DEN) would quickly pick up many of these markets Texas markets and the majority of these people would prefer to connect through another airline's hub than drive 3-4 hours to catch a flight on AA.

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