APA with very interesting proposal

[Beer&Brauts]

What are the chances AMR would actually go for this deal? Doesn't seem like there is much in it for them. They would have to pay AA pay for the RJs and lose their cheap labor. Keep in mind that the only ones who benefit from RJ flying by the regionals are management.

 

[publisher]

Distance

What I think was a direction of consolidation in regionals is now a distancing from regionals as far as mainline carriers go.

If American accepts this deal, it will indicate that they are too far down the road with Eagle to do that and they are accepting what they consider to be an inevitable conclusion.

In the end, it just makes them even less capable of competing with other regionals and niche carriers.