that won't play well with the "burn eagle down" crowd but whatever happens the "jet for jobs" crowd certainly will have a say.

 

What if there was a new airline formed to fly so that any additional jobs were guaranteed to the AA pilots currently on furlough?

Or, how about a new carrier that has total costs less than Eagle, so that its cheaper for AMR to operate, thus increasing job stability for the current AA pilots. Heck, they could even transfer the CRJ's there to save some bucks..

Just sayin-

 

There was a thread on another board about creating a LCC within a legacy carrier and the reasons why it failed (Ted, Song, etc). If the LCC is integrated into the legacy carrier (MTX, pilots, FAs, gate agents, etc) then the total operating cost is the same or close to that of the legacy which negates the reason for the LCC. If you keep the companies separate then you have two separate structures of management, frontline labor, assets, etc which adds to the total cost again.

The second situation is basically what AMR does with Eagle currently, and they profit from it due to the very large cost gap between mainline and regional industries. Reducing that gap is what will allow APA to regain all flying whether it is from lowering the mainline costs, or increasing the regional costs.

If APA was serious about getting the furloughed guys off the street then they should look to AE ALPA to work out a way to add new airframes on the Eagle certificate, but offered first to AA furloughees. I doubt it will ever happen, FWIW

 

I don't think the APA is interested in creating another low-pay competitor. AE is quite enough. Contract language, no matter how obviously intended, can be twisted and tortured by a compliant arbitrator to read anything management wants. With 37/44/50 seat RJs rapidly becoming obsolete in all but a few markets, and holding fast to only allowing 47 70-seaters, a strategy might just to let it implode under it's own weight, eventually . . . or sooner if oil spikes.

 

A merger with Eagle will not happen. I can't believe people are even entertaining this....

 

So after Eagle implodes what will happen to AA? Where will your regional feed come from? What planes will those other regional carriers fly (hint: it wont be less than 70 seats)?

 

LUV has yet to implode either. ZERO regional feed. It is possible.

 

Sure, it is possible if you want to shut down your entire international division, park all MD80s, 757, 767, 777 and only use the 737-800 for domestic US ops. Youll be furloughed too, but at least you wont need any regional feed!

 

to give it a name I calll it the NWA/Compass scenario. been discussed before.

 

Bingo.

AA needs going forward will be the 100-130 seat jet. Notice I didn't say Eagle needs the 100-130 seat jet. How that ends up remains to be seen.

Just bidness.