AA, AE merger
#151
What are you willing to give the APA for that clause? Why would they care who does the flying since, to them, it's all "their" flying which is being outsourced? As far as they are concerned an CHQ scumbag, job-stealer is just as bad as an Eagle scumbag, job-stealer. However, if you have something to offer that they want, then they might be willing to dicker.
#152
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#153
Disagree. AA could replace AMR Eagle with Chatauqua, Trans States, Mesa, Republic, Skywest...anyone who could provide regional hub feed at market prices, potentially below Eagle CASM. Don't think for a second AA wouldn't sell/spin off Eagle, if it made biz sense to do so.
#154
Even if Eagle is willing to staple themselves to the trapdoor of the APA's long johns and the APA agreed to it, I seriously doubt AA management would give up their whipsawing ability for less than a very, very steep price.
#155
BTW, what is taking the APA so long to negotiate a contract? Isn't four years a new record in contract negotiations? How long do you think it will take? Five years? Six?
#156
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my opinion;
1. can aa sell ea, no, amr can, they own both.
2. will amr sell ae, well lets see. they charge eagle 5 times the price for anything. everything basically goes through aa, gates, office space, fuel, etc; you think they are giving ae the family discount.
3. they (amr) can move money from one (aa/ae) to the other and show losses easier. tax savings.
4. when you pay the non owned feeder, that money leaves the corporate account and never comes back. aa pays ae and the money is deposited back in the amr account.
5. they can move us around at will and can downsize with no penalty to aa.
great example;
ae sold all atr's to some leasing company (probably owned one of the amr board members brother-in law_that money went directly to aa and ae now pays leases on aircraft it use to own. lorenzo/ichann play book.
ae serves aa/amr a purpose. they have been saying for 15 years it is for sale. except the most recent time they actually let buyers talk to them deal would be you buy ae from amr but amr controls the operation. in other words you give us your money and we will help you loose even more. that does not sound as a true for sale sing on the door. instead they sold american beacon investments.
not to say it cant be sold, just the real desire to sell does not exist at this time.
besides this way amr has a say in both side negotiations.
1. can aa sell ea, no, amr can, they own both.
2. will amr sell ae, well lets see. they charge eagle 5 times the price for anything. everything basically goes through aa, gates, office space, fuel, etc; you think they are giving ae the family discount.
3. they (amr) can move money from one (aa/ae) to the other and show losses easier. tax savings.
4. when you pay the non owned feeder, that money leaves the corporate account and never comes back. aa pays ae and the money is deposited back in the amr account.
5. they can move us around at will and can downsize with no penalty to aa.
great example;
ae sold all atr's to some leasing company (probably owned one of the amr board members brother-in law_that money went directly to aa and ae now pays leases on aircraft it use to own. lorenzo/ichann play book.
ae serves aa/amr a purpose. they have been saying for 15 years it is for sale. except the most recent time they actually let buyers talk to them deal would be you buy ae from amr but amr controls the operation. in other words you give us your money and we will help you loose even more. that does not sound as a true for sale sing on the door. instead they sold american beacon investments.
not to say it cant be sold, just the real desire to sell does not exist at this time.
besides this way amr has a say in both side negotiations.
#157
Agreed 100%. Unfortunately for most Eagle-haters, it does make "biz sense" for AA to keep Eagle otherwise they'd have been long gone. If they did sell them, then it'd be as a play to dodge scope.
BTW, what is taking the APA so long to negotiate a contract? Isn't four years a new record in contract negotiations? How long do you think it will take? Five years? Six?
BTW, what is taking the APA so long to negotiate a contract? Isn't four years a new record in contract negotiations? How long do you think it will take? Five years? Six?

AA
#159
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Joined: Apr 2009
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I wonder how airlines made it through the first 70 years before the venerable 37 seat E-135. But hey, it gave Peter Bowler some recognition and some fine bonuses.
#160
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They tried to sell and/or spin Eagle off in 2007, no buyers. I guess no one wants a fleet of high cycle 37-seat RJs for some reason...
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