Originally Posted by
rickair7777
AMR walks a thin line with eagle...most majors prefer to keep their regionals at arm's length so they can whipsaw them, and to avoid being held hostage by a striking regional pilot group.
While AMR risks a COMAIR style shutdown by owning eagle, they were also able to reap the profits from their regional. The regionals (and SWA) were the only solidly profitable airline segment from 2002-2006...eagle's profits contributed to keeping AA out of bankruptcy.
Also the eagle alpa contract is for some ridiculous length of time... 15 years or so? AMR has them right where they want them...wages locked in, no strike potential this side of the horizon.
Exactly, AE ALPA contract goes until 2012 and has a no-strike clause. That alone is benefit enough to keep them around. I also cant see AE being spun off since they have one of the highest labor costs of regionals, aging/obsolete aircraft, and a route structure/fleet that is restricted by AMR/AA contracts. Nobody would buy them, and if they were spun as an IPO then its a sure bet to tank. AE relies on AA and AA relies on AE.