AMR Corporation Plans to Divest American Eagle

[MikeSF340]

XJT was IPO'd in 2003 I think. Airlines were a lot worse off then. There is a lot more to this than "lets let Eagle find new contracts and expand." This is TERRIBLE news for Eagle as an airline. They are going to have to compete with the likes of CHQ, TSA, SKW, MESA, etc. All of these airlines have been competeing for new buisness for years and are cheaper and willing to do it for less. This is almost exactly what happend to XJT. Eagle was created to serve AA and blend perfectly into a terrific seamless product. Unfortunately that means that Eagle is probably a lot more expensive. That is pretty much what happend with XJT. XJT is now just starting to try to trim some fat and become more competitive. I'm sure AA will place some no competition clauses into the new contract that will basically kill any change Eagle has to expand anyway. Imagine, eagle can't fly any airplanes for any other company into LAX, ORD, MIA, RDU, BOS, and DFW. I hope this doesn't happen, but I think that's the way it's going to go.

 

[Speedtape]

1. Contrary to poular belief, the world does not revolve around Skywest or Skywest Pilots. It revolves around the Widget Pilots; the General will affirm that axiom.

2. Based on long standing SOUTHWEST philosophy, they do not outsource flying! I doubt that will ever change. If they need a different airplane type, they will fly it. Remember, SOUTHWEST is not a true hub and spoke operator like the legend carriers. That will not change.

3. Whether wholly owning Eagle, or divesting and "outsourcing" to Eagle, AMR still enjoys some of the lowest costs in the regional industry. I am pretty sure Skywest block hour costs are higher. Why do they need Skywest????

4. Skywest has almost a billion dollars in cash. I doubt they would want to lose that advantage by taking on more debt. With the economy going South, Cash and those with it will be King. They may spend some of it on a deal that has good value--as with ASA. However, if they have to pay more than 50 Cents on the dollar, they will keep their cash.

5. Without a doubt, Skywest has a strong position with a strong balance sheet. They may need that cash should the rumor of recession become reality. They may need it because one of their partners may fail without the protection of the old bankruptcy laws in a deep recession. That carrier is not based in Atlanta.

 

[Gr82Aviate]

What happens if the majority vote no on what they offer? Do they offer something else?

Duh....less!

 

[Gandalf]

I heard this rumor a month ago. EMB170s out of DFW for OO after AMR restructures Eagle. I hope not. I hope the SWA one is true. Gotta be a reason they want us to vote on the yet to be announced pay package before years end.

I am sitting here and I can't even begin to believe my F!@$ing ears heard you say that about SWA! WAY TO DRAG THE INDUSTRY DOWN! Are you kidding me!

Sweet - so let me get this straight - we already are so happy about flying bigger and bigger a/c for less pay, and now lets enter into an agreement with SWA to fly 1000s AND WE WON'T HAVE TO WORRY ABOUT SEAT NUMBERS, SO WE CAN BE THE CHEAPEST B@$TARDS OUT THERE FLYING THAT NUMBER OF PEOPLE AROUND JUST SO YOU CAN CREAM YOUR PANTS WHEN YOU ARE AT A PARTY TRYING TO IMPRESS A GIRL BY TELLING HER THAT YOU FLY FOR SWA EXPRESS?

WTF????

 

[Fishpaw]

Originally Posted by SkyNation
I heard this rumor a month ago. EMB170s out of DFW for OO after AMR restructures Eagle. I hope not. I hope the SWA one is true. Gotta be a reason they want us to vote on the yet to be announced pay package before years end.

Originally Posted by Gr82Aviate
Duh....less!

Has this ever happened before at skywest? Have the pilots voted no on a "pay package"? Did the company come back with a better offer or just drop it?

 

[siucavflight]

I am sitting here and I can't even begin to believe my F!@$ing ears heard you say that about SWA! WAY TO DRAG THE INDUSTRY DOWN! Are you kidding me!

Sweet - so let me get this straight - we already are so happy about flying bigger and bigger a/c for less pay, and now lets enter into an agreement with SWA to fly 1000s AND WE WON'T HAVE TO WORRY ABOUT SEAT NUMBERS, SO WE CAN BE THE CHEAPEST B@$TARDS OUT THERE FLYING THAT NUMBER OF PEOPLE AROUND JUST SO YOU CAN CREAM YOUR PANTS WHEN YOU ARE AT A PARTY TRYING TO IMPRESS A GIRL BY TELLING HER THAT YOU FLY FOR SWA EXPRESS?

WTF????

Some just dont get it. Keep the mainline planes at mainline will keep more mainline jobs where they belong.
Why fly a 100 seater for 70 bucks at a regional when we could fly a 100 seater for 140 bucks at a major.

 

[Crash Pad]

Answer: Because if you play your cards right you can be the first to upgrade on a 757 for $108 an hour!

 

[Coloaviator]

Skywest payscales for 100 seat aircraft top out at a little more than $120 an hour-where did you get $70 an hour.

 

[catIIIc]

Skywest payscales for 100 seat aircraft top out at a little more than $120 an hour-where did you get $70 an hour.

Yeah after 18 years and how many guys do you have at that pay scale, 2? And you do not have any 100 seaters so that pay scale means nothing.

 

[siucavflight]

Skywest payscales for 100 seat aircraft top out at a little more than $120 an hour-where did you get $70 an hour.

How many 18 year pilots do you have?
And they top out at 99 an hour. Dont beleive me?
http://airlinepilotcentral.com/airlines/major-national-lcc/skywest.html
Sorry, your 3 year Captains are making 63 an hour. Figure they will give you 70 an hour for your 100 seater.

 

[lookin4better]

the key word is 'top out'.....wow how impressive

You have to remember that a large percentage of SKW and regionals are young guys with zero clue ( not all are clueless!) ....they just are happy to fly a jet painted in colors of a real airline, and yes most likely tell people that " i fly for United " .....

like I said earlier....most have no idea of how many of them will get stuck in the regionals.....so I guess its important to note the scale 'tops out' at 120$, becuase more may see it then they think.

 

[PA44Jockey]

"There is considerable doubt if you can do this in a very difficult airline operating environment," he said.
That's because American Airlines' labor contract with its pilots forces Eagle to use smaller, less-efficient jets. If Eagle were freed from that restriction due to a sale or spin-off, it could operate more-efficient 70- to 90-seat jets instead of the 50-seaters it uses now, Warlick said"

If sold, can the deal really include adjustments to contracts with the workgroups that are already in place? Everyone at Comair has pretty agreed that the airline is either sold already or soon to be sold. Management has been saying in recent G/S's that they are going to be getting rid of 50's to be replaced by 900's. I just wasn't sure if that could be worked in to a sale or not.

 

[siucavflight]

the key word is 'top out'.....wow how impressive

You have to remember that a large percentage of SKW and regionals are young guys with zero clue ( not all are clueless!) ....they just are happy to fly a jet painted in colors of a real airline, and yes most likely tell people that " i fly for United " .....

like I said earlier....most have no idea of how many of them will get stuck in the regionals.....so I guess its important to note the scale 'tops out' at 120$, becuase more may see it then they think.

And besides they dont top out at 120, they top out at 99, see the link I provided above.

 

[ex j-41]

"The decision comes after a careful and deliberate evaluation of the strategy that will best enable us to continue to create value for our shareholders," said AMR Chairman and CEO Gerard Arpey. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure."

In other words....shareholders make dividends...employees are whipsawed.

 

[pipers]

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