Does AA liquidate one WO
05-03-2020, 06:32 AM
#21
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Joined APC: Mar 2017
Posts: 429
There is no way that AAG would spend the money on a merger. They can get all of the pilots that they want right now, so the smart move would be to just cut one of the airlines and allow them to reapply with preferential hiring at the bottom of the seniority list of another. Dropping all of those pilots back to first year pay would save a great deal of money. If the pilots don't want to go, there are literally thousands of pilots right now that will take those jobs.
The smartest move would be to move the airplanes away from Piedmont (the smallest of the airlines with a fleet that will be in the desert in a year from now anyways) and leave them as a ground handling and service agent only company. Eventually let them be a specialized company that only does the ground handling and ticket service stuff, and leave the flying to PSA and Envoy. Embraer 170/175 to Envoy, CRJ 700/900 (and whatever its replacement will be) to PSA.
Whipsaw is real, and there is a time that having many airlines is beneficial. There is also reverse whipsaw, where having too many airlines is detrimental. Airlines competing for the limited number of pilots for the last few years was harming the airlines (to the benefit of the pilots). The regionals were in the territory of reverse whipsaw when this all happened, and with more pilots on the street than are needed, they do not need to whipsaw anymore. It is beneficial to start to consolidate.
Besides, we all heard Isom say that there will be another regional airline cut in the near future from AA flying. Some movement is going to happen.
The smartest move would be to move the airplanes away from Piedmont (the smallest of the airlines with a fleet that will be in the desert in a year from now anyways) and leave them as a ground handling and service agent only company. Eventually let them be a specialized company that only does the ground handling and ticket service stuff, and leave the flying to PSA and Envoy. Embraer 170/175 to Envoy, CRJ 700/900 (and whatever its replacement will be) to PSA.
Whipsaw is real, and there is a time that having many airlines is beneficial. There is also reverse whipsaw, where having too many airlines is detrimental. Airlines competing for the limited number of pilots for the last few years was harming the airlines (to the benefit of the pilots). The regionals were in the territory of reverse whipsaw when this all happened, and with more pilots on the street than are needed, they do not need to whipsaw anymore. It is beneficial to start to consolidate.
Besides, we all heard Isom say that there will be another regional airline cut in the near future from AA flying. Some movement is going to happen.
05-03-2020, 07:44 AM
#22
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Joined APC: Mar 2014
Posts: 774
Originally Posted by DoNoHarm
There is no way that AAG would spend the money on a merger. They can get all of the pilots that they want right now, so the smart move would be to just cut one of the airlines and allow them to reapply with preferential hiring at the bottom of the seniority list of another. Dropping all of those pilots back to first year pay would save a great deal of money. If the pilots don't want to go, there are literally thousands of pilots right now that will take those jobs.
The smartest move would be to move the airplanes away from Piedmont (the smallest of the airlines with a fleet that will be in the desert in a year from now anyways) and leave them as a ground handling and service agent only company. Eventually let them be a specialized company that only does the ground handling and ticket service stuff, and leave the flying to PSA and Envoy. Embraer 170/175 to Envoy, CRJ 700/900 (and whatever its replacement will be) to PSA.
Whipsaw is real, and there is a time that having many airlines is beneficial. There is also reverse whipsaw, where having too many airlines is detrimental. Airlines competing for the limited number of pilots for the last few years was harming the airlines (to the benefit of the pilots). The regionals were in the territory of reverse whipsaw when this all happened, and with more pilots on the street than are needed, they do not need to whipsaw anymore. It is beneficial to start to consolidate.
Besides, we all heard Isom say that there will be another regional airline cut in the near future from AA flying. Some movement is going to happen.
The smartest move would be to move the airplanes away from Piedmont (the smallest of the airlines with a fleet that will be in the desert in a year from now anyways) and leave them as a ground handling and service agent only company. Eventually let them be a specialized company that only does the ground handling and ticket service stuff, and leave the flying to PSA and Envoy. Embraer 170/175 to Envoy, CRJ 700/900 (and whatever its replacement will be) to PSA.
Whipsaw is real, and there is a time that having many airlines is beneficial. There is also reverse whipsaw, where having too many airlines is detrimental. Airlines competing for the limited number of pilots for the last few years was harming the airlines (to the benefit of the pilots). The regionals were in the territory of reverse whipsaw when this all happened, and with more pilots on the street than are needed, they do not need to whipsaw anymore. It is beneficial to start to consolidate.
Besides, we all heard Isom say that there will be another regional airline cut in the near future from AA flying. Some movement is going to happen.
I think you are correct. The pilot shortage is over for the foreseeable future. If y’all can be consolidated you will, any redundancies need to be eliminated. If somebody wants to buy you, you’ll be sold. These are totally uncharted waters and I imagine all options are on the table.
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05-03-2020, 07:57 AM
#23
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Posts: 2,012
Suspension of all Piedmont air ops could get rid of a huge amount of fixed costs and avoid chaos at the other two carriers. What would they get out of a merger? They can transfer the airframes to envoy easily enough
05-03-2020, 09:05 AM
#24
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Joined APC: Apr 2020
Posts: 264
LOL, talk about anti Piedmont. AAG has already invested millions into Piedmont, what makes you think they would send their planes back to envoy and cut jobs? You can’t use Comair as an example either, as delta cut all 3 of their
WO, not just one. Also, some of PSA’s CRJ700s are just as old even older than Piedmont’s E145s. What makes you think that PSA is excluded from any type of action from AAG? It would be a bad decision to liquidate one WO, as flying will be back (not pre covid levels but better) prior to the fall. We are already seeing much more loads on flights. If anything were to happen, I can see Mesa’s CRJs going to PSA or AA cutting RPA or Skywest and having PSA take their longer routes.
WO, not just one. Also, some of PSA’s CRJ700s are just as old even older than Piedmont’s E145s. What makes you think that PSA is excluded from any type of action from AAG? It would be a bad decision to liquidate one WO, as flying will be back (not pre covid levels but better) prior to the fall. We are already seeing much more loads on flights. If anything were to happen, I can see Mesa’s CRJs going to PSA or AA cutting RPA or Skywest and having PSA take their longer routes.
05-03-2020, 11:31 AM
#25
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Posts: 2,012
Nothing that was relevant in February or before is still relevant. AA has invested millions in lots of places. That doesn’t really change what will be the best way forward.
Passenger counts are down 94% currently. The likelihood of a timely rebound to 2019 business-as-usual levels is, charitably, low.
So AA needs to drastically reduce regional flying. How do they do that? Maybe they have a way to dump outside lift. But if not, what assets would be irretrievably lost shutting down their smallest WO?
Passenger counts are down 94% currently. The likelihood of a timely rebound to 2019 business-as-usual levels is, charitably, low.
So AA needs to drastically reduce regional flying. How do they do that? Maybe they have a way to dump outside lift. But if not, what assets would be irretrievably lost shutting down their smallest WO?
05-03-2020, 11:48 AM
#27
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Joined APC: Oct 2010
Posts: 107
Originally Posted by ZeroTT
Suspension of all Piedmont air ops could get rid of a huge amount of fixed costs and avoid chaos at the other two carriers. What would they get out of a merger? They can transfer the airframes to envoy easily enough
Also, what chaos at the other two WO are you referring to and why would AA care? Genuinely curious.
05-03-2020, 12:20 PM
#28
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Joined APC: May 2020
Posts: 484
Originally Posted by APCsucks
In the near future AA won't exist. We'll be lucky to see a american flag airplane flying by 2025. AA has more debt than the other majors combined. I call liquidation.
05-03-2020, 01:23 PM
#30
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Joined APC: Dec 2017
Posts: 658
Originally Posted by Av8rPHX
What’s to stop AA from invoking force majeure with SkyWest,Republic and Mesa and canceling those contracts? That’s what they likely did with Compass.
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