Originally Posted by
eaglefly
The primary reason AMR kept the AE debt was not dumping it in BK, but because they essentially HAD to. To cast Eagle out on it's own with a debt load that would certain to sink it by making it impossible to finance new aircraft and thus be unable to bid for other flying NECESSARY for it's survival, would be grounds for action from the shareholders.
Also most of Eagles debt is the aircraft, well if AMR is going to transfer those to AA they have to take the debt as well. AA purchased the aircraft from Eagle this is how they kept Eagle's debt. AMR can't afford for Eagle to fail in the beginning, it will take years for them to spread the feed. Not sure if some of you are aware but AMR can actually outsource 50 seat flying right now, without Eagle being spun off, they do it with RAH, and they have done it in the past with TSA. Why didn't AMR just give more airplanes to RAH when they announced they were parking ERJ and putting 60 pilots on the streets. THis would have been a great way for the company to put pressure on the pilots by continuing the outsourcing.