Originally Posted by
galaxy flyer
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
Still missing the point! AE and any OTHER regional who is interested in doing feed for AA will have to use 50 seat jets in order to do the flying! That levels the playing field. RAH would NOT be able to bid routes with E175, E190's! They would have to use the same 50 seaters Eagle does.
Eagle would have been in 175's, or 700's ages ago if they would have been allowed to.
Why do you think the CRJ700's we have, have first class seats? It was because we were not allowed to have a 70 seater..so yank some chairs out and spin it to the public.First class. lol