Originally Posted by
bgmann
If "stuff" hits the fan it'll give me a reason to improve my life.
I think JetBlue will buy American Eagle. Trade all EMBs in for points towards 190s and then American buys JetBlue and AA gets around 50seat scope
AA just beats around the bush by getting what they want by "interline agreement" operating EMB-190s since they can't now.
Out of curiosity what does eagle has that JB would want?
JB already has the interline agreement with AA and no one, not even embraer ,wants those 50 seaters.
You can't trade those e135/145 for points on E190, it is cheaper to buy E190 straight out that to burden yourself with that useless jet.
Add to that the fact that JB is very unhappy with the E190 program so they are only taking deliveries of what they can't cancel or defer and again one has to wonder What does Eagle has that JB or anyone for that matter would want?
do they have so much cash in hand that a leverage buy-out with eagle's own money is possible?do they have enough assets that it would make sense to do a leverage buy-out to sell the assets and still come out ahead? that is the only scenario that seems logical it Eagle has the cash and assets to finance it, and if that was the case wouldn't AA do it themselves to keep the profits of that?
JB has an interline agreement with AA. AA would love to extend it that APA has strong scope to prevent it form getting out of hand. Eagle has nothing to offer to JB that JB cannot do on their own or via AA interline agreement.