AMR to say "Buh Bye" to Eagle?

[RJET]

The sale of Eagle might be a good thing. Grow as fast we want, fly what we want, no scope clause, besides how worst can it get?

 

[FO 4 Life]

I suspect an overwhelming percent of passengers on Eagle connect on to a mainline jet, whereas most AA passengers never step foot on Eagle.

If they start on Eagle and connect to AA, how do you think they're going to get back home? AA will magically take them home instead of making them step foot on an Eagle airplane.

AA flyer, as far as the 10-K for AA, AMR still moves money around. We pay AMR for everything we use. Gates, simulators, even the friggin ice we get. Don't believe everything you read about money when AMR is involved.

Selling off Eagle won't get around the scope either as long as we provide feed for AA. However, the APA did give away unlimited domestic codeshare in the concessionary agreement so we could buy bigger aircraft and codeshare instead of providing feed.

 

[belchfire]

"If AMR gets rid of Eagle who will mainline provide feeder service for?"
Funny! Anyway, I can't see them selling Eagle. One would assume that it is much more economically viable than mainline given their lower operating cost, and has to add significantly to AMR's bottom line. It would be a massive influx of cash if they were able to find a buyer, but I think it is a short sighted solution that has more down sides in the long term. Thoughts?

Corpex in J-32's baby! We're going to start the revolting retro prop revolution!
hehehe

 

[FDJ2]

If they start on Eagle and connect to AA, how do you think they're going to get back home? AA will magically take them home instead of making them step foot on an Eagle airplane.

And your point is? You've only addressed the minority of passengers flying the AA code who happen to get on an Eagle aircraft, not the majority that don't.

 

[80drvr]

If they start on Eagle and connect to AA, how do you think they're going to get back home? AA will magically take them home instead of making them step foot on an Eagle airplane.

AA flyer, as far as the 10-K for AA, AMR still moves money around. We pay AMR for everything we use. Gates, simulators, even the friggin ice we get. Don't believe everything you read about money when AMR is involved.

Selling off Eagle won't get around the scope either as long as we provide feed for AA. However, the APA did give away unlimited domestic codeshare in the concessionary agreement so we could buy bigger aircraft and codeshare instead of providing feed.

So, are you saying that Arpey is lying on the financials? It's pretty simple-Regional feed generates less revenue than it costs.

Also, APA did not give away "unlimited" domestic codeshare. There are many limitations in the letter of agreement that would preclude what you propose. Plus, it is unlikely that AMR would relinquish control of Eagle in an IPO.

 

[PacoPollo]

Hey FO4Life dealing with this APA pukes is a waste of time. They are the best of the best at everything.

 

[80drvr]

Hey FO4Life dealing with this APA pukes is a waste of time. They are the best of the best at everything.

Thanks for the compliment .

 

[Beerme]

The sale of Eagle might be a good thing. Grow as fast we want, fly what we want, no scope clause, besides how worst can it get?

I don't know...why don't you ask one of the Independence Air guys???

 

[igneousy2]

They certainly could do that I suppose, but management hasn't floated that idea, but they have floated selling Eagle. Here's a question for you, how "profitable" would Eagle be without AA to feed? I suspect an overwhelming percent of passengers on Eagle connect on to a mainline jet, whereas most AA passengers never step foot on Eagle.

The number used to be about 25% of mainline pax came from eagle. I suspect that the number is higher now. Since 9/11 eagle has shrunk its "feeder" capacity and grown in areas that were traditionally mainline domains. BOS-DCA, BOS-JFK, BOS-LGA, were never flown by Eagle but now take up a huge percentage of flight hours. (I'm sure there are others but I was BOS based)

Here's a question for you...How many other airlines would love for Eagle to be able to feed them?

If AMR was willing to spin off their cash cow SABRE, anything is possible. The possible expansion of eagle once APA is out of the picture is tantalizing. Eagle could be way more creative with code-shares, etc. with all the money going into the coffers of AMR.

Flow through agreement ends in a few years anyway. Many questions still remain about what happens to the various groups of pilots once this occurs. Do flowbacks get to stay? The captains with AA numbers, do they still get to go? I'm sure this will all be settled civily in court.

As far as training cycles, the numbers calculated are exagerated because of several factors...

1. Only about 20% of the furloughs actually accept flowback for whatever reason. Some can get more money elsewhere and some simply aren't qualified to be a captain at Eagle (or any other airline).

2. Most displacements of captains are only "paper" displacements with captains immediatelly being awarded vacancies on the same bid. Eagle pilots actully have the power to limit the number of guys coming back by not putting any jet captain slots in their displacement preferences, but Eagle pilots have never been a united bunch.

3. Eagle management controls how many flowbacks come back at a time so they have control over how many training cycles they create.

Training cycles are hardly a reason to sell off Eagle.

Later

 

[amcnd]

Eagle won't be free after a sell. Most likely they will set up somthing like COEX. But alot longer, like a 16 year contract to feed AA.! (sound familiar) A IPO is not a good idea right now for AMR. The "street" is to smart(they know Eagle would still be tied to how AMR is doing) and the industry as a hole is bad. the only solution is to sell to another company and get a low fee for departutre to keep there profit high. Eagle is still number 1 on the profit margin scale. And another company could come in and purge the company of usless jobs, and get a higer profit. Not to many company's have over 1bil. dollors (what Eagle is estimated to be worth) Myabe DR. Evil