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Old 11-28-2007, 11:47 AM
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Default AMR Selling EAGLE

So,
Will the scope clause hold up? As a businessman it seems like a good thing for AMR, as a pilot, I'm not sure?? I think our scope will still protect any Regional Junk (RJ) feeder whether its Eagle or not.?
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Old 11-28-2007, 12:21 PM
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Originally Posted by tone View Post
So,
Will the scope clause hold up? As a businessman it seems like a good thing for AMR, as a pilot, I'm not sure?? I think our scope will still protect any Regional Junk (RJ) feeder whether its Eagle or not.?
Every Tom, Dick, and Harry will be bidding to get their piece of the "American" pie.


For those who don't understand the reference:

That's RAH, PNC,XJT,AirWhiskey,TSH, Sky West, Mesa, and even Eagle.

Last edited by flaps 9; 11-28-2007 at 12:29 PM.
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Old 11-28-2007, 12:24 PM
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I can already hear the stampede as the flowthroughs with AA numbers run for the exit!
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Old 11-28-2007, 12:56 PM
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Originally Posted by RJ Pilot View Post
If this were to happen;Buh-Bye scope.
Don't think so. Check out when CAL sold off Express.
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Old 11-28-2007, 01:24 PM
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In the case of a merger or acquisition there is typically a seller and buyer. In the AMR announcement all I hear is that they are ready to divest Eagle.

Any speculation about who would want to buy? Hedge funds, other airlines?

This seems far from a done deal although I'm sure they wouldn't announce anything unless they had a plan (oh wait, we're talking about airlines )
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Old 11-28-2007, 01:41 PM
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I have a very credible source from the "inside" that Skywest is looking very hard at buying Eagle.

Mark those words.
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Old 11-28-2007, 01:47 PM
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Originally Posted by HSLD View Post
In the case of a merger or acquisition there is typically a seller and buyer. In the AMR announcement all I hear is that they are ready to divest Eagle.

Any speculation about who would want to buy? Hedge funds, other airlines?

This seems far from a done deal although I'm sure they wouldn't announce anything unless they had a plan (oh wait, we're talking about airlines )
HSLD,
They could simply spin it off in the open market like NWA did with Pinnacle.
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Old 11-28-2007, 01:49 PM
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Originally Posted by RJ Pilot View Post
If this were to happen;Buh-Bye scope.
Negative. Still limited to those 25 700's. Who cares about the mosquito jets.
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Old 11-28-2007, 01:51 PM
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In a press release, AA parent AMR says: "The divestiture of American Eagle is intended to provide it with the structure, incentives and opportunities to win new business and provide new opportunities for American Eagle's employees. AMR also believes that the divestiture will enable American to focus on its mainline business, while ensuring American's continued access to cost-competitive regional feed. Once the two airlines are separated, it is expected that they will operate pursuant to a mutually beneficial air services agreement under which American Eagle will continue to provide American with regional flying of a scope and quality comparable to that provided prior to the separation and on terms that reflect today's market for those services."
AMR is trying to lower their regional seat costs by requiring Eagle to compete for their business with the other large regionals, as CAL is doing with ExpressJet. This will also generate cash and stock value which will hold the shareholders at bay for a while, as no mergers between the big seven majors are going to happen anytime soon.
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Old 11-28-2007, 01:52 PM
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Originally Posted by jsled View Post
HSLD,
They could simply spin it off in the open market like NWA did with Pinnacle.

Not sure what you mean by that. Divest, Spin-off, sell, all seem to be the same thing. Where does the money come from?
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