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American to sell wholly owned regionals?


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American to sell wholly owned regionals?

Old 01-20-2025 | 04:38 AM
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Originally Posted by bonvoyage
A good friend at a wholly owned told me American wants to sell them to reduce the cost that came with the higher pay and that is the only way out of the contracts early. Is that rumor true?
Cant sell something if there is nobody to buy it.
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Old 01-20-2025 | 04:42 AM
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Originally Posted by rickair7777
It's possible that the FFD contracts (not the labor contracts) can be terminated upon sale.

That could be a useful clause for management, if the purpose of the sake is to reduce labor costs. AA could then hold a gun to the pilot group's head.... concessions or contract terminated, good luck on the openm market.
No one is going to purchase a regional without ironclad provisions defining what the flying will be after the sale.
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Old 01-20-2025 | 04:43 AM
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Originally Posted by Otterbox
Rates expire in 2026 don't they? Problem takes care of itself then if so.
Railway Labor act contracts do not expire.
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Old 01-20-2025 | 05:43 AM
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Originally Posted by sailingfun
Railway Labor act contracts do not expire.
i believe the rates were part of an MOU established to retain and attract pilots. MOUs can expire.
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Old 01-20-2025 | 10:05 AM
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It was explained to me that American can just sell the certificates to a “new” company, and lease the aircraft to it. And that company will do the exact same flying, but for 1/3 the cost
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Old 01-20-2025 | 10:05 AM
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Originally Posted by bonvoyage
A good friend at a wholly owned told me American wants to sell them to reduce the cost that came with the higher pay and that is the only way out of the contracts early. Is that rumor true?
Good grief, learn from History. AA puts their regionals up for sale anytime contracts are getting close to becoming amendable.
Eagle (when it was Eagle) was for sale in 2008, then again in 2010 when they wanted more concessions or you're being sold, then again in the bankruptcy more concessions, and even AFTER the bankruptcy they demanded more concessions under threat of being Comair II (since theyd run to the "for Sale" thing so often nobody believed it anymore. In that case, they did watch as EagleVoy went from 3200 pilots to 1800. It coincided with the increased mainline hiring everywhere, but they did NOTHING to stop the bleeding until late 2015 when they started giving back everything they took in December 2015, then continued until we ended up with $100k Fo's and $200k-$350k CA's...

You can expect a merger of the WO's down the road, they'll buy a few more of the smaller feed providers, they'll come up with the word American Connection for non-owned carriers and keep American Eagle for owned carriers. Heck, they may even buy Silver in bankruptcy and rebrand it executive (since AA still holds the operating certificate) and have them run a base in SJU again.....

AA doesn't do anything new, they have a 30-35 year cycle, then they repeat.
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Old 01-20-2025 | 10:07 AM
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Originally Posted by bonvoyage
It was explained to me that American can just sell the certificates to a “new” company, and lease the aircraft to it. And that company will do the exact same flying, but for 1/3 the cost
and they'll staff the pilots with 1/3rd less pay how? SJS only goes so far. Once the Boeing, Airbus and Pratt issues are resolved the floodgates open again and they won't be staffing anything with 1/3rd less pay.
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Old 01-20-2025 | 10:27 AM
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Originally Posted by Cujo665
and they'll staff the pilots with 1/3rd less pay how? SJS only goes so far. Once the Boeing, Airbus and Pratt issues are resolved the floodgates open again and they won't be staffing anything with 1/3rd less pay.
Because if 5000+ Eagle pilots are put on the street, yet a new Eagle carrier is created and hiring, you believe everyone of the pilots will refuse a job? What will you do go work at wal mart instead? They would have every seat filled immediately. Now would be the time to do it when LCCs are liquidating and there’s no where to go
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Old 01-20-2025 | 11:31 AM
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Originally Posted by bonvoyage
Because if 5000+ Eagle pilots are put on the street, yet a new Eagle carrier is created and hiring, you believe everyone of the pilots will refuse a job? What will you do go work at wal mart instead? They would have every seat filled immediately. Now would be the time to do it when LCCs are liquidating and there’s no where to go

GoJet style.
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Old 01-20-2025 | 04:58 PM
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Isn't this what happened when "American Eagle" became "Envoy"?
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