Originally Posted by
Iowa Farm Boy
Michael Boyd has been wishing for and predicting the demise of AE for ten years. If he keeps saying it long enough, eventually he'll be right.
While I agree that the 50 seat market is declining, none of us as yet knows what's up AMR's sleeve. I'm sure there'll be enough pain for all the employee groups.
I don't believe he is predicting Eagle's demise---just a reduction in the highest cost/least-revenue-producing units, the ERJ-135/140 series RJs that cost too much to operate, burn too much fuel and don't have enough seats to make operating them economically viable.
I think his analysis regarding older Eagle jets is correct---they're liabilities that will be shed at the 1st opportunity in bankruptcy. If scope relief is forthcoming (an explosive issue), then AE could operate more CRJ-700s with ATRs and a few ERJ-145s/50-seaters. But don't expect AMR Eagle to remain at 300+ aircraft.