AMR Board May Be Near Decision on Eagle Sale, Union Says

[DGdaPilot]

Is there a more senior pilot group? And this is just pay rates.

http://www.airlinepilotcentral.com/airlines/major-national-lcc/american_eagle.html

Nope, not many other regional groups that have as high of a longevity as us. But CX880 made a claim of concrete numbers. To my knowledge, those numbers have never been displayed for public consumption. So he's either really well connected or talking out of his arse. Wanna take a guess which one it is?

 

[paid4training]

You Wantta see how this will all turn out, just ask a continental express, no I mean expressjet..... No I mean skywest or is it ASA... How a regional ipo worked out!!!!!

 

[DGdaPilot]

You Wantta see how this will all turn out, just ask a continental express, no I mean expressjet..... No I mean skywest or is it ASA... How a regional ipo worked out!!!!!

Not quite. This will most likely be a stock split spin, not an IPO. There's a difference. In my opinion, this will be worse.

 

[TapitLight]

I am with you, splitting Eagle will be ugly. The company is not competitive on costs. This will be made well known when the full financials are released. I don't know if they could even survive as a standalone carrier in present form. American would have to make a sweet offer in terms of a long term flying contract for someone to come in, buy Eagle and concentrate on bringing costs in line with other regionals.

 

[paid4training]

Call it what you want, anytime big sister company wants a divorce it will get very messy and QOL and job security is out the door!!!!

 

[Freedom]

So much for the "Career Regional" theory....

My bet is it does get spinned off away from AMR.

They then declare Bankrupcy, due to their high (relative to other regionals) cost structure, the Contract gets thrown out the window, and the American Eagle Pilots are making Mesa wages, at least those that still have a job.

Sad truth is, this is the nature of the Regionals. They are not a viable Career destination. With the Majors always looking for the cheapest feed, as regional pilot contracts get better, that regional becomes less likely to be the low bidder and get the business.

It kind of reminds me of the UPS feeders. UPS constantly looking for the low bidders on the route.

Think the SkyWest Pilots are stupid for not voting in the Union? Actually, they are probably the smartest pilots in the regional business. Their lack of a union contract allows their management to be more flexible and more efficient, to better enable them to under bid the competition for the Major's business.

I hate to admit it, but in this situation, they may be the only ones out there that won't go through the cycle of boom and bust that almost all the regionals go through, simply because they have more flexibility than the union regional carriers.

If I was an Eagle Pilot who was considering making it a career, I'd be looking for the first Major Airline or Corporate seat I could find. And quick.

Think about it.

 

[homerjdispatch]

...
Think the SkyWest Pilots are stupid for not voting in the Union? Actually, they are probably the smartest pilots in the regional business. Their lack of a union contract allows their management to be more flexible and more efficient, to better enable them to under bid the competition for the Major's business.

I hate to admit it, but in this situation, they may be the only ones out there that won't go through the cycle of boom and bust that almost all the regionals go through, simply because they have more flexibility than the union regional carriers.

...

Time to get the popcorn started...

 

[Freedom]

I didn't say I liked what the Majors do....

making the Regionals race to the bottom to fight for business, but I just call it like I see it.

Anyone that has been around this business (aviation) long enough, has seen exactly the same thing I have. Todays top regional is tomorrows dog, under cut by the latest bottom feeder.

Look at Piedmont, Air Wisconsin, Comair, etc... All once the premier places to work; now a tiny shadow of what they once were.

I am just stating a fact. The Regionals are no place to make a career. With the possible exception of SkyWest, and only because they will have an unfair (yes I said it, unfair) advantage over the rest because they are one of the only ones I can think of that is non-union, and therefore, many of their cost burdens are simply not there.

Sadly, the Professionals at American Eagle may be next.

If I was working there, I'd be busy on my escape plan.

But that's just me.

 

[WSurf]

Thank god its just you!

 

[nimtz]

My bet is it does get spinned off away from AMR.

They then declare Bankrupcy, due to their high (relative to other regionals) cost structure, the Contract gets thrown out the window, and the American Eagle Pilots are making Mesa wages, at least those that still have a job.

Yep that's the way it will go down. Create that phantom balance sheet of assets/liabilities looking good so the IPO goes well and AMR gets a good return on the assets. Then two quarters later, whoomp the rug gets pulled out and BK occurs. Great plan! Wonder how many securities laws it violates?