Thread: What do think will happen at Eagle?
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Old 10-21-2010 | 09:18 PM
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From: Engines Turn or People Swim
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Originally Posted by Flyby1206
Pump N Dump. Flowthroughs go to AA, which lowers the average seniority (lower labor cost). Upgrades happen (pilot morale technically should improve). New aircraft deliveries (9 more CRJ700s still to be delivered). Lots of fanfare and press releases about how American Eagle Airlines is growing and prospering.

Then IPO

Then AMR removes the CRJs from Eagle, after sending out RFPs to Skywest, RAH, Mesa etc. Park the ATRs and contract Colgan to fly Q400s on our current prop routes. Get another lowballer to fly their surplus 50seaters in the base of your choice (JFK/LGA, ORD, DFW, LAX).

American Eagle stock tanks, AMR stock jumps. Execs collect bonuses and have a party. When Eagle declares BK they will be purchased by SKYW/RAH/Pinnacle.
That's exactly what AMR would like to do. The only thing preventing it is that nobody is stupid enough to buy AE without some very long-term contract guarantees. If they really want to get rid of them they will have to downsize AE themselves, ala COMAIR. Wouldn't make sense to get rid of airplanes which are on lease/mortgage...have to wait until they expire.

Is an IPO even possible? Since they are owned by AMR are they already publicly traded as AMR?
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