AMR to say "Buh Bye" to Eagle?

[skootertrash]

I hate to admitt it but for us Express Jet guys this was a good thing. Except for the fact that we lost the Flow Through Agreement, we now have the ability to stay profitable. Had we still been owned by CAL we wouldn't have seen any increases in wages and benefits. Now that we are separate Express jet can't cry poverty and say they can't pay us.


Plus CAL has been able to milk 450 million bucks and still hold on to the service we provide. And they now have the ability to whipsaw us against any other regional who's willing to fly for sh11t wages (thank you MESA/CHQ). It sucks for the pilots but as far as being a buisness decission it is a sound one.

 

[rumorhasit]

Keeping in mind that I don't follow the stock market... So pardon my ignorance.

How did Continental achieve "success" or "make a nice profit" on the CoEx sale? I just checked the stock price and it's hovering around $11. The IPO was for $16, wasn't it?

I believe Continental is still in possession of 40-50% of the stock, and I'd think with a 33% drop in the stock price as compared to the IPO would be a LOSS.

Someone help me out here....

unfortuantly you are wrong...Cal owns approx 30% and the sale added to CALs bottom line...They now have a better balance sheet because the losses are no longer off setting the gains by continental express when they were both the same company. They can now use losses for tax breaks and whine about things...

 

[FDJ2]

True! Why don't they sell mainline and keep the profitable part, Eagle?

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.

 

[tk855]

Hey Skootertrash,

I love the following line in your post, it really hits the nail on the head. You said, "I hate to admitt it but for us Express Jet guys this was a good thing. Except for the fact that we lost the Flow Through Agreement, we now have the ability to stay profitable."

You have no idea how bad us guys at eagle really want to get rid of our flow through agreement. From our point of view, there would be no bad part of losing the flow through!

tk

 

[PacoPollo]

Hey Skootertrash,

I love the following line in your post, it really hits the nail on the head. You said, "I hate to admitt it but for us Express Jet guys this was a good thing. Except for the fact that we lost the Flow Through Agreement, we now have the ability to stay profitable."

You have no idea how bad us guys at eagle really want to get rid of our flow through agreement. From our point of view, there would be no bad part of losing the flow through!

tk

Easy there cowboy...If Beagle gets sold, that 16year POS goes along with it.
Letter 3 goes with it as well.... Sucks major!

 

[CaptRob]

Who needs who? Who cares?

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.

In LAX, at least half of the passengers on Eagle don't set foot on an American Airlines jet. They go to Delta, Continental, Alaska, Hawaiian, Northwest, Qantas, Japan, ATA, or any one of the code-share partners they have in Los Angeles. I imagine that if Eagle were to be sold, they would make many more of these agreements.

Quabbleing over who would be better off is useless. AA/Eagle is a symbiotic relationship. If AMR could make money without the investment it takes to operate Eagle, they would, in a heartbeat.

AMR has shown it's loyalty toward Eagle pilots. It's not an impressive show. When was the last time Arpey mentioned Eagle? When was the last time Arpey spoke to an Eagle union leader?

There's your answer.

 

[tarp]

Well, somebody just nailed one of the reasons. If AMR/Eagle has "flow-through", then don't they have "flow-back"?

They just said they are going to furlough/release 450 AA pilots. Don't AA pilot's have first rights to Eagle slots (by flow-back)?

Just like at Continental - suddenly everybody in your house is in the training department. Huge costs. But if Eagle is gone (sold) before the furloughs, then both companies stay in a status quo with the only losers being the 450 at the end of AA's seniority list.

If I'm management and I see 900 training events. 450 AA guys retrained to Eagle and 450 Eagle CA's probably displaced to FO. I'm thinking at $18-25K per training event, that a lot of money can be saved. 900 x 20K per is $18M just in retraining costs that ain't being covered by excess revenue on seat miles.

US Airways is balking at Seniority (and they want to flush pilots with retiring aircraft). ACA/Indy just "tweaked" their contract to get Indy off the ground without having the entire pilot list in training - lose two aircraft (J41 and DoJet's) and add the Airbus with only the CRJ guys stuck in the middle.

Ladies and gentlemen, training is expensive. The airlines know this. They are trying to get around it anyway they can. Our seniority system creates a lot of training events for every seat move depending on the structure of the company. I've found that THIS is our Achilles Heel. When an airline gets down to line items - fuel, salaries and training events are expensive little tickets.

 

[vc10]

Contribute the equity to its pension plan, thereby reducing the underfunding...

What!!?? Why would AMR sell Eagle? That makes no sense. They have so much invested in them, they provide feeder service from all over to AA's hubs. What a loss that would. I don't get it.

 

[PacoPollo]

amr will "sell" eagle to get rid of the APA's scope. Look for the "new" eagle
operating the emb's170-190. in the near future...

 

[BEXFlyer]

Food for thought.....


I was just looking in the latest issue of "American Way" magazine the other day......NO mention of Eagle at all. No plane specs, no press whatsoever. HMMMMMMMMMMMM