American Eagle might be "set free"

[ReverseSensing]

Does management start talking about stuff like this when it isn't pretty imminent?

"We are carefully considering the pros and cons" of selling units, Horton said. Added Arpey: "It may make sense for us to set Eagle free to grow its business."

http://atwonline.com/news/story.html?storyID=10555

 

[Flyby1206]

This comes up every year or so, dont hold your breath.

 

[Inconceivable]

Could be a threat. AMR is pretty psychotic about vertical control, though.

From their point of view, it does make sense. Cut you loose, get a one-time chunk of cash and make you fight for your own survival on the scraps they throw--just like everyone else has done.

Anyone remember when Crandall threatened to sell the airline because he was making more money off of SABRE?

 

[spacecadet1]

Eagle new hires: dust off the resume. Netjets is an excellent option. All the other regionals suck (including jetblue)

 

[7574EVER]

I'm just kind of curious. Why so much hatred towards Eagle the past few months. It seems like every little bread crumb is BIG news.

It used to be that saying MESA or GoJets caused the same chaos as yelling "bomb" in the middle of a crowded building. Now Eagle seems to be the hot topic. I understand that no place is perfect...but, Where's the love?

 

[siucavflight]

Every few months someone starts an Eagle for sale thread.
Truth of the matter is even if they did want to sell us no one would buy us with the contract that the pilots have, it would cost the company too much to buy us with our contract lasting till 2013. And Spacecadet got fired from here a little while ago.

 

[7574EVER]

And Spacecadet got fired from here a little while ago.

Yea I remember you mentioning that in another thread.

I mean, I'm not believing everything I read about Eagle. I'm just curious as to why it's become the red-headed step child lately.

 

[oceandude]

Worked at Eagle for five years. Good bunch of guys & gals. Was a pleasure flying with them! Stop the hate! BE POSITIVE!!!!!

 

[siucavflight]

Yea I remember you mentioning that in another thread.

I mean, I'm not believing everything I read about Eagle. I'm just curious as to why it's become the red-headed step child lately.

All airlines take their turn being in that position. Most of the people that complain about it dont work here.

 

[rtmcfi]

Yea I remember you mentioning that in another thread.

I mean, I'm not believing everything I read about Eagle. I'm just curious as to why it's become the red-headed step child lately.

This thread does not seem too hateful to me. It is just news.

 

[Flyby1206]

Every few months someone starts an Eagle for sale thread.
Truth of the matter is even if they did want to sell us no one would buy us with the contract that the pilots have, it would cost the company too much to buy us with our contract lasting till 2013. And Spacecadet got fired from here a little while ago.

If AE were to be "spun-off" then this means they would be turned into a separate company not affiliated with the AMR stock ticker. There would be an IPO (Initial public offering) and new stock ticker. The AMR execs would cash in on the IPO and then the future of the airline (and stock price) wouldnt affect AMR/AA.

All high up AE mgmt are employees of AMR with AA employee badges. A spin off would mean completely new mgmt I assume?

Nobody would have to buy the AE company, it would just turn into a publicly owned company owned by shareholders. I think our pilot contract would be sent to section 6 for new negotiations meaning we would be pressured to join the race to the bottom to compete with lower avg seniority/payscale regionals.

 

[CitationUltra]

Every few months someone starts an Eagle for sale thread.
Truth of the matter is even if they did want to sell us no one would buy us with the contract that the pilots have, it would cost the company too much to buy us with our contract lasting till 2013. And Spacecadet got fired from here a little while ago.

That contract woul not necessarily be binding upon a new owner.

 

[eaglefly]

That contract woul not necessarily be binding upon a new owner.

Yes, our contract IS binding on a new owner. It's SPECIFICALLY says just that.

However, as flyby says, it WOULD trigger Section 6 negotitions and probably would ultimately result in a more "competitive" pilot cost structure, which is not good for the pilots.

 

[siucavflight]

That contract woul not necessarily be binding upon a new owner.

It is absolutely binding to a new owner. We have a section in there that says exactly that!

 

[ReverseSensing]

I certainly didn't start the thread because I have anything against AE. And I wasn't aware that AA management had publicly tossed out the idea of selling off AE in the past.

I have no ill-will toward AE (why would I?) I was just curious if this was viewed as a serious overture toward spinning-off the airline.

As a QX pilot, I'm curious about anything that might impact our CA flying.

 

[CitationUltra]

It is absolutely binding to a new owner. We have a section in there that says exactly that!

Section or not, the contract would not ncessarily be bnding upon a new owner. It depends upon how the "spin-off" is done, whether through an asset sale, or corporate transfer of ownership (the latter may or may not result in the existing contract being binding upon a new owner). AE employees covered by CBAs would end up back in negotiations on a new contract.

 

[Flyby1206]

It is interesting to note that about 5-6 months ago there was a newspaper article that implied AMR was thinking of selling AE based on some quote by the CFo that was probably taken out of context. The next day AE mgmt sent out mass emails, postings on the company web site, crew lounges, etc stating that this wasnt the view the company intended to portray and they had no plans to sell AE. Fast forward to today, and we have quotes taken from an earnings conference call with the CEO saying:

"We are carefully considering the pros and cons" of selling units, Horton said. Added Arpey: "It may make sense for us to set Eagle free to grow its business."

If AE was spun off, it could be as a way to get around the APA scope clause to fly bigger a/c without restrictions. I would guess that if APA isnt willing to flex on scope, then AE will be spun off and fly bigger a/c while the AA MD80 fleet is reduced. Either way, AMR wants AE to fly bigger planes for cheap rates. The only thing APA can do it decide if they will allow scope changes and get some pay raise in return, or have the company do it anyway by spinning AE off.

 

[7574EVER]

When does a new hire get the chance to grab hold of a copy of the contract?

 

[Flyby1206]

When does a new hire get the chance to grab hold of a copy of the contract?

I think after the first week of indoc. The union will come in and give you free pizza and a copy of the contract. Theres a lot to learn in indoc, systems, sim, etc, but after you get on the line focus on the contract.

 

[7574EVER]

I think after the first week of indoc. The union will come in and give you free pizza and a copy of the contract. Theres a lot to learn in indoc, systems, sim, etc, but after you get on the line focus on the contract.

Do they REALLY give us FREE pizza??? I'm liking ALPA already!!! Just kidding. I'm sure the pizza isn't as good as it is here in Chicago..In that case I'll be dissapointed.