AMR heading towards Bankruptcy?????

[G4G5]

The problem with a spin off is two fold. If Carty tries to spin off 49% of Eagle, he does not get around Scope because he still has the controlling interest. So this idea makes no sence.

If he spins 51% off then he has lost control of Eagle, that's not something that he wants to do. That becomes and IPO and he would receive too much pressure from the BOD. Why an IPO in this economy only to divest an asset?

SCOPE, it has reached a time when he needs to deal with the APA. The simple thing to do is sell Executive in SJU that will get him below the ASM cap but now he has lost control of an asset.

The simplest and smartest thing to do would be to have AA mainline fly the 70-90 seat RJ's. The would eliminate his ASM problem and allow unlimited RJ growth. Their aren't too many furloughed TWA LLC pilots who wouldn't be happy flying an RJ for the new 18 year Comair rates.

He knows this and IMHO all the rumors are just his grumblings while behind the scenes they negotiate

 

[eaglefly]

But that would put AMR at a great disadvantage with competetors who will be flying 70 (and eventually 90) seat RJ's under a regional cost structure. Mainline costs (beyond pilot salaries, there's work rules and retirement - mainline F/A costs - mainline mechanic costs - mainline gate agent costs - mainline ramp costs etc) would remove most of the potential cost effectivness of these A/C.

Comair
ASA
COEX (XJET)
Freedom (ugh!)

-against-

AA mainline

I have difficulty seeing this.

I would like to see mainline expand and grow. There are SEVERAL thousand pilots on the AA list junior to me. But it would go against AMR and Carty's MO.

 

[Fast Eddie]

Once these big carriers go into bankrupcy, A politically appointed federal judge will start running the show. The last time we had a couple of Republican presidents(Reagan & Bush) those of us that worked for now extinct carriers watched these entities get reconstituted. Asset sales, outright liquidation etc, with the depositories being the very entities that are ,they themselves
about to be reconstituted , a morphing if you will, into a hodgepodge of Regionals, super nationals etc with greatly
reduced pay rates and benefit structures. What we are now seeing are the final stages of the Deregulation" Experiment" as
authored by Professor Cahn of Cornell University