Originally Posted by
atp409
Eagle flying does more for AMR shareholders than republic flying would for AMR. Eagle is wholly owned, the money stays in house rather than making someone who flies for AA's competitors rich.
Not trying to be argumentative, but this is not necessarily true. While it is true that the revenue stays inside AMR, its also true that the expenses do too. Thus, if the NET of revenue over expenses is greater at REP than Eagle, it makes sense to out source.
Don't like it -- but those are the facts, from a purely accounting perspective.