Originally Posted by Cujo665

because they just do CBT indoc for the PSA pilots and add the CRJ training program to Envoy. The PSA CRJ program just becomes the new Envoy training program. If you move PDT to Envoy the pilots need not only CBT indoc, but also short course under existing Envoy E145 training and a line validation check / PC.
There could be a work around, but that’s how it’s worked in the past. Ask any of the Bizex pilots that were flying the E135 when AA bought them to be part of Eagle. Same CMO office, don’t see why they wouldn't follow their own precedent.

One way is to liquidate PDT and furlough all pilots. Send the planes to the desert. Add the PSA CRJ training program to Envoys. Furlough from both as needed. Recall as needed but all pilots only go to Envoy. Indoc and train as needed. The PSA guys not furloughed do a CBT Envoy indoc, then change ID’s. Two regional administrations are then gone.

They can’t do most of that until October, so a consolidation is possible first. I’m skipping over lots of little steps, but those are the highlights. I expect bankruptcy to be involved also. If they did a consolidation with PSA/ENY with ENY being the survivor, how much of the PSA administration will resign rather than move to Irving TX? They’d have to furlough before consolidating or they’ll have to wait for a full SLI to happen first.

Envoy shares most of the infrastructure, policy & procedure similarity with AA, including DECS/RES. The Envoy CEO is also an AAG corporate officer, the CEO’s of the other two regionals are nobodies outside their company.

Lots of possibilities, these are but a few examples. The least likely is a PDT and Envoy merger.

Originally Posted by captande

Thought PSA’s president came from the president spot of USAirways Express. I wouldn’t say he’s a nobody outside of PSA. He’s been around a while.

Originally Posted by ZeroTT

“unless xxx” is exactly what I’m saying. I’m saying if AA needs to cut regional capacity 30% (arbitrary but reasonable guess) that totally ditching 50 seat ex phl/clt might make sense. The employee cuts are devastating to one group but they’re simple and direct and they leave the employee groups you plan to keep more intact. When transatlantic demand to Shannon and Budapest recovers three years later you open an envoy 145 base in Philadelphia to feed that.

Originally Posted by sanicom3205

You’re talking about a company wanting to get out of the business of owning another airline. That’s entirely different than wanting to get rid of one of its three.

AA doesn’t need pilots right now. We will in two years, our retirements are off the wall. Unless you want to argue that we will be about half the size we are today in five years, in which case I would say you’re crazy.

Originally Posted by ZeroTT

Are piedmont’s pilots and ground handlers linked in any way?

Originally Posted by Av8rPHX

Never know. Johnny O might want to get back into the ground handling game


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Originally Posted by chrisreedrules

Several financial analysts in the past 2 days see ZERO ways out of the current situation for AA. Parker gambled and lost. To his credit no one saw a flippin’ pandemic coming.

Based on the financials, AA wouldn’t be able to pay down their debt for the next DECADE and that is with a good recovery back to a healthy economy which we all know isn’t going to happen. They’re going to have to declare Ch11, shrink drastically both their crews and domiciles, and wipe as much debt away as possible. My guess is the company and flying live on, and the executive management team and the shareholders do not.

My prognostication:
Close LAX, LGA/JFK, BOS, and PHX. Shrink ORD and MIA. Keep their fortress hubs in DFW and CLT, keep DCA and PHL. Alaska and JetBlue will be codeshare partners and do the west coast and New England flying. Retirements will hopefully put a dent in the need to furlough super deep, but I wouldn’t be surprised to see an initial displacement similar to United’s and perhaps more after.

For AA, it’s about more than just passengers returning and filling airplanes at this point. They have to find a way to be profitable and find positive cash flow. Only way to do that will be to restructure and shrink.

Originally Posted by rickair7777

UnfortunatelyI can't find much fault there except:

1. We don't know what demand recovery will look like, although economic malaise and fear are obviously problems.

2. We don't know what else the Fed might do to help. Do they intervene to prevent BK, or intervene in BK to prevent liquidation?