Thread: AMR to trim Eagle costs $75 million, 600 cuts

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eaglefly , 03-26-2012 08:27 AM
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Quote: The same argument can be made with JetBlue and or Alaska! AMR has stated that they could see consolidation in the future but not necessarily with US Airways! PHL doesn't help with the issues AMR is facing in the NE, Delta is attacking AMR hard and fast, 7 flights were added between LGA/DFW this week I believe!
Code-shares with the above are a certainty and merges at some point with one or both within the realm of possibility. As for the RJ's, AMR will get hundreds of up to 76-seaters, but above that, a limited amount and hopfully none. Remember that for every one of those 76-seaters, means perhaps 10 less new-hire slots at AA. That means much slower attrition from the top at Eagle and if some of Eagle's flying is parted out, that's not good.

In reading the Eagle term sheet, it looks like a current 50-seat topped out E-145 captain will be flying the 76-seater for about the same pay......actually less, considering the guarantee is 5 hours less. The TS ensures those rates via limits till 2016 and then 2016 comparison to the lowest out there till 2020 will mean that snenior topped-out captain will make about $80K/year till 2020. By 2019, if you're lucky enough to be one of those captains, the equivelent earning power in 2012 dollars would be about $50-55K/year, i.e., that pay stays the same, while inflation and increased health care make you 5% poorer every year. If you're stagnated junior to that, well...............

That is the future in store for a large portion of hopful regional pilots at least on the AA and possibly AA/U side as more and more mainline flying is replaced by these aircraft. It's a fabulous deal for airline managers, but the end of a profession for pilots.
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