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Old 07-20-2011 | 03:38 PM
  #39  
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galaxy flyer
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Joined: May 2010
Posts: 5,244
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From: Baja Vermont
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AA subsidized the small jets because they added "feed" to the mainline. If the divested AE has to stand on its own and bid, at a profitable price, with 37 to 50 seat RJs they might be "underwater" pretty quickly. It's hard to make money on small jets if you are not getting a premium price. AA is not divesting AE to increase their costs--TAKE THAT TO THE BANK.

Take the AE offer? Up to you, but this business can change on a dime.

GF
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