doulasc
Topic Author
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Future Of American Eagle/American Connection

Sun Sep 16, 2012 1:32 am

What does the future have in store for American Eagle with American Airlines in banckruptcy.How long will American
Connection be around which came around after American merged with TWA and that was Trans World Express.
Its been talked about that AMR wants to shed AE/AC to be on their own. Will we see regional jets that hold more than 50
passengers like the E-170. Are the ATR-42 and 72's days numbered?
 
mhkansan
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 5:45 am

American is returning its remaining ATR-72s early. From what I hear, their days at SJU ruined the airplanes and now the maintenance costs and lease costs are too high. That being said, it is/was a profitable airplane to operate, but the economy of it is ruined by the structural/lease costs and maintenance.

American Eagle Airlines, LLC, so far seems to be doing fine. The new scope contracts at AA are good for regional flying, It remains to be seen what, if any, large regional flying MQ can pick up and what the new name of the airline is.

There is, of course, lots of talk about new ATRs (72-600 with an APU) and larger Embraers/CRJs. I guarantee its all speculation. No one knows which regional airline will get that large flying except the folks at AA who are still getting used to the competitive bid process (RFP).

I'm more concerned about ground handling, personally. MQ ground handlers picked up a bunch of new stations, but instead of being operated by American Eagle Airlines ground personnel, with health and flight benefits and very reasonable pay for a job that doesn't require a degree, the stations are Eagle Ground Services (EGS) - agents with AA/MQ seniority but whom are getting paid minimum wage and are without flight/health benefits.

Its sure to lower costs but if they're doing the same jobs as the MQ Airlines folks are, I guarantee quality and performance will drop, especially since a lot of the stations are ex-AA, who used to be unionized, paid well, and had full benefits.

Personally I think the American Connection brand will soon go away. We'll have to wait for official word when the rebranding announcement comes out, but AA has stated its wants the regional brand to be "American Eagle" with MQ, the airline, changing its name either now or after the divestiture.

There is a lot going on regionally at AA, and even at mainline with smaller mainline aircraft (a319) coming onboard. Its an exciting time for the airline and I'm sure the company will emerge financially profitable from the restructuring. I hope they can do that while keeping performance high and with the best regional partner AA will find at MQ.
 
eastalt
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 11:04 am

I have a question? Why is American Eagle-MQ, sitting around waiting on AA to call the shots? Eagle should be fighting to protect the future of its employees. I realize AMR owns Eagle and they call the shots but the CEO of Eagle has got to have some plan in place to remain an airline.

Further, in my opinion, I would think MQ is in a better position to strike out on its own. They could lease some second hand 737s or Airbuses and change their name to become new LCC and take advantage of their relationship with AA to take some of the code share flying for AA and the other Oneworld Carriers.

Also AA is closing STL. I would look into taking the STL operation and expand from there with joining AAdvantage. Further, I would look into other partnerships with Frontier, JetBlue and Virgin America.

I know my idea might be silly to some, but someone has got to be doing something. I cant believe an organization this size has no back up plan other than ground handling. There are too many ground handling companies out there right now.
 
mhkansan
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 1:44 pm

I trust Dan Garton to take MQ in the right direction from here, and I'm sure he's very actively pulling for MQ to get the 50+ seat contracts for AA as opposed to OO and XJ.
 
srbmod
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 2:26 pm

American Connection is a branding used on non-American Eagle operated flights. A likely scenario could see them put all American Eagle and American Connection service under one unified brand like other airlines do (I'm thinking that they will retain the American Eagle branding for such operations since that is a branding used for a much longer period of time than the American Connection branding.). A spin-off of American Eagle has been long rumored but has yet to take place and the AMR bankruptcy may have delayed or possibly hastened this move (Maybe as part of their reorganizing plan, they spin off American Eagle Airlines to their creditors, but retain the rights to the American Eagle name.). Let's not forget about the possibility of AA and US merging as well, and that would change the landscape for both airlines' regional operations.
 
boberito6589
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 3:07 pm

Quoting srbmod (Reply 4):
American Connection is a branding used on non-American Eagle operated flights. A likely scenario could see them put all American Eagle and American Connection service under one unified brand like other airlines do (I'm thinking that they will retain the American Eagle branding for such operations since that is a branding used for a much longer period of time than the American Connection branding.

Didn't they just announce this a couple of days ago? AmericanConnection will be phased out and everyone will operate as American Eagle. American Eagle Airlines (MQ) is expected to announce a name change.
 
ExpressJet_ERJ
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 3:27 pm

Quoting boberito6589 (Reply 5):
Didn't they just announce this a couple of days ago? AmericanConnection will be phased out and everyone will operate as American Eagle. American Eagle Airlines (MQ) is expected to announce a name change.

Yes this website is getting rediculous with speculation and far fetched rumors when FACTS are available. American Connection name will be phased out and Skywest, ExpressJet, Chautauqua, and American Eagle, will all operate as American Eagle.

I am guessing that these recently signed contracts are in place so that the larger aircraft can be delivered (as there is not a glut of 70+ seat aircraft). I fully expect more announcements for larger aircraft for American Eagle flying soon.
ETOPS...Engines Turn Or People Swim
 
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jfklganyc
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 4:17 pm

"There is a lot going on regionally at AA, and even at mainline with smaller mainline aircraft (a319) coming onboard. Its an exciting time for the airline and I'm sure the company will emerge financially profitable from the restructuring. I hope they can do that while keeping performance high and with the best regional partner AA will find at MQ."

Court ordered contract rejection for pilots

Depths of BK

Possible takeover by US

Oh and, Eagle just lost there whole west coast operation to a competitor leading to a pilot base closure, further shrinkage

But wait...there's more to come.

Exciting time? AMR employees probably wouldn't use that adjective to describe this time. Likely scary time
 
flyby519
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 11:09 pm

Quoting eastalt (Reply 2):
I have a question? Why is American Eagle-MQ, sitting around waiting on AA to call the shots? Eagle should be fighting to protect the future of its employees. I realize AMR owns Eagle and they call the shots but the CEO of Eagle has got to have some plan in place to remain an airline.

Dan Garton (MQ CEO) is an AA employee and wears an AA ID badge. Keep that in mind when you wonder why he isnt out there fighting for the Eagle-MQ employees futures...
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BlueLine
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RE: Future Of American Eagle/American Connection

Sun Sep 16, 2012 11:26 pm

AMR was in the process of spinning off Eagle a few months before filing for bankruptcy. Since the filing, that has been put on hold. After the proposed split, there would have been a five year contract between MQ and AA for regional flying. AMR would own everything and lease it to MQ. The stand alone Eagle would effectively be a staffing company. After that contract expires, the regional flying would be open for bidding. Now with the deals with OO and XJ, I see more of the 50 seat flying being contracted out with MQ getting nearly all of the 70+ seat regional flying.

As for the fleet, I hear rumors that Eagle will be getting CRJ-900's and CRJ-1000's. The 900's I can see, but it would surprise me if they take the 1000 over the Embraer 190. I could see Bombardier giving then a nice deal to take a few 1000's if they go with the 900. We could also see a plan for E-Jets to come on property very soon after the pilot contracts are sorted out.
 
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KGRB
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RE: Future Of American Eagle/American Connection

Mon Sep 17, 2012 2:26 am

Quoting eastalt (Reply 2):
I realize AMR owns Eagle and they call the shots but the CEO of Eagle has got to have some plan in place to remain an airline.

I'm sure the CEO of MQ has as much of a plan to remain an airline as the CEO of Comair does. It doesn't matter what he does, because AMR always calls the shots, much like DL does at OH. It's his job to put a positive spin on it for employees.

Quoting flyby519 (Reply 8):
Dan Garton (MQ CEO) is an AA employee and wears an AA ID badge. Keep that in mind when you wonder why he isnt out there fighting for the Eagle-MQ employees futures...

Great point. If MQ were shut down tomorrow Garton wouldn't have to worry about keeping his job - he'd be retained by the company and move to some other cushy post at corporate.

If I worked at MQ, I'd be getting my resume ready right now.

Quoting BlueLine (Reply 9):
Now with the deals with OO and XJ

Not to nitpick, but I think you mean EV. It's a common mistake, but XJ was actually Mesaba.

Quoting mhkansan (Reply 1):
I'm more concerned about ground handling, personally. MQ ground handlers picked up a bunch of new stations, but instead of being operated by American Eagle Airlines ground personnel, with health and flight benefits and very reasonable pay for a job that doesn't require a degree, the stations are Eagle Ground Services (EGS) - agents with AA/MQ seniority but whom are getting paid minimum wage and are without flight/health benefits.

Interesting. Does MQ have any stations anymore or is it all EGS? I'm glad my station (ATW) didn't go to Eagle when DL issued their latest RFP.
Flown on 9E/AA/AL/CP/DL/EV/HP/MQ/NW/PT/OO/OH/UA/US/XJ/YV/YX/ZW
 
mhkansan
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RE: Future Of American Eagle/American Connection

Mon Sep 17, 2012 6:44 am

Quoting jfklganyc (Reply 7):
Court ordered contract rejection for pilots

Depths of BK

Possible takeover by US

Oh and, Eagle just lost there whole west coast operation to a competitor leading to a pilot base closure, further shrinkage

But wait...there's more to come.

Exciting time? AMR employees probably wouldn't use that adjective to describe this time. Likely scary time


"Depths of BK" - where AA can negotiate better contracts, restructure its debt, write off expensive depreciating airplanes, and gain competitiveness with other airlines who have already done this. Remember AA is the only airline to, until now, not declare bankruptcy after 9/11.

"Possible US takeover" - Likely not going to happen unless AA is calling the shots. US simply doesn't have the capital or the clout to make it happen unless something changes in the makup of the bankruptcy court. It will likely happen, just not imminently and not under these circumstances.

"Entire West Coast Operation Lost" - OO is taking over the 44 seat routes MQ had at LAX. This is allowing the smallest crew base to close and to streamline the operation. Remember MQ still flies the CR7s out of LAX (ORD based) and OO has a serious economy-of-scale at LAX being the largest regional airline there by a long shot. Even now, before the takeover, OO carries more than twice the amount of passengers out of LAX than does Eagle.

It also allows MQ jets to go to MIA, where they're desperately needed, not only to replace ATRs, but to cover for an fleet pulled very thin by the flying they already do there, and to presumably open up some more domestic connectivity to the MIA hub, which is desperately needed.

AA is using the BK to its advantage. There is a lot of speculation about what will happen at AA and at MQ, and things are changing fast. However, there are a lot of people that are claiming doom and gloom about the future. Right now, the honest answer is that we don't know, but its exciting to watch - AA is transforming itself like every other network carrier has done. Its going to emerge profitable, and I'd be pleased to stay with MQ and stand by a successful operation. We have a wonderful thing in MQ's relationship with AA. I hope it is continued to be recognized and utilized after the BK and after the divestiture.

Quoting KGRB (Reply 10):
Interesting. Does MQ have any stations anymore or is it all EGS? I'm glad my station (ATW) didn't go to Eagle when DL issued their latest RFP.

'

Lots and lots and lots. I think right now EGS is ust below-wing at some ex-AA stations. MQ ground handling is a big operation around the US still, I hope it remains that way.
 
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Acey559
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RE: Future Of American Eagle/American Connection

Mon Sep 17, 2012 7:18 am

Quoting mhkansan (Reply 3):

I trust Dan Garton to take MQ in the right direction from here

I don't, and I don't think there are many of us here that do.

Quoting flyby519 (Reply 8):
Dan Garton (MQ CEO) is an AA employee and wears an AA ID badge. Keep that in mind when you wonder why he isnt out there fighting for the Eagle-MQ employees futures...

Yep.

Quoting BlueLine (Reply 9):

We'll shrink quite a bit before we start growing in the coming years. Management has a plan but never feel the need to clue the rest of us in on it. The day the LAX base closure was announced, they recalled all furloughs and announced the intention to start hiring this fall. Not sure how the math on that works, but again, there's a plan the rest of us aren't privy to.

Quoting KGRB (Reply 10):
If I worked at MQ, I'd be getting my resume ready right now.

One step ahead of you.