Originally Posted by
EagleDriver
They could always use more cash, who couldn't, but lack of cash is not AMR's primary problem right now. They've got over $5.5 Billion in cash listed on their balance sheet today and Eagle isn't worth very much anyway unless it's sold with a long term contract to supply feed for AA.
After the TWA bailout I don't think AMR is going to be the trend-setter in the next merger.
Ourpay Arpey got lambasted by the pilots union a few hours before the AMR announcement about reducing management numbers. Also he could have gotten wind that FL group was in the process of selling of their stake in AMR stock. Doubtful that he was trying to appease the pilots. He wants to keep the stock price up because he and his buddies still have options to cash out of before they let the company implode.
Your right about Eagle not being worth much...Right now. AMR posted a Q&A message on the pilot web site that basically states that they will be asking for changes in Scope during section 6 talks. If they're sucessful in getting APA to allow bigger aircraft at Eagle in exchange for large pay increases (the only reason I see APA agreeing to any scope changs), it would make Eagle much more attractive to a buyer. Should be an interesting 2008.