AMR to sell Eagle
11-28-2007 | 03:21 PM
#41
Line Holder
Joined: Jan 2007
Posts: 441
Likes: 15
From: 30 West
Actually Exec. is owned by AMR and all pilots who fly for AE including Exec. are on the same seniority list. I'm not sure why AMR chose to keep Exec. a unique business, but it may have to do with the uniqueness of operating internationally out of PR and the certificates needed.
11-28-2007 | 03:53 PM
#43
Gets Weekends Off
Joined: Sep 2006
Posts: 787
Likes: 0
Man...I practically predicted this with this post 2 days ago in another forum on here:
This is just an opinion--but seriously, look at some the mainline-owned regional carriers--PSA, Horizon, Piedmont, Comair, AE...they all have relatively long upgrades and thus high labor costs. In this day and age of low-time cheap labor and a general trend of outsourcing, those carriers are probably a lot more prone to getting packaged and sold than "mercenary" carriers who have the flexibility to fly for whoever they get contracts with. Eventually a point comes where the higher labor cost margin of running connection flights with 7/5 yr Capt & FO outweighs paying another co. to do that same connection flying with 2 yr Capt/1 yr FO.
In this day and age, I would imagine the mngmt at AA and Delta would want to outsource as much of the risk and price competition of the domestic markets to regional carriers, and focus their mainline operations on lucrative biz travel routes and transcons. I'm not saying that's a good thing for pilots, just saying that a mainline-owned regional doesn't offer the stability it once did.
Now, if any of the above mentioned carriers had flowthroughs that amounted to anything but carrot-waving to get pilots, those companies would be worth the 7 year wait.
This is just an opinion--but seriously, look at some the mainline-owned regional carriers--PSA, Horizon, Piedmont, Comair, AE...they all have relatively long upgrades and thus high labor costs. In this day and age of low-time cheap labor and a general trend of outsourcing, those carriers are probably a lot more prone to getting packaged and sold than "mercenary" carriers who have the flexibility to fly for whoever they get contracts with. Eventually a point comes where the higher labor cost margin of running connection flights with 7/5 yr Capt & FO outweighs paying another co. to do that same connection flying with 2 yr Capt/1 yr FO.
In this day and age, I would imagine the mngmt at AA and Delta would want to outsource as much of the risk and price competition of the domestic markets to regional carriers, and focus their mainline operations on lucrative biz travel routes and transcons. I'm not saying that's a good thing for pilots, just saying that a mainline-owned regional doesn't offer the stability it once did.
Now, if any of the above mentioned carriers had flowthroughs that amounted to anything but carrot-waving to get pilots, those companies would be worth the 7 year wait.
11-28-2007 | 03:55 PM
#45
Banned
Joined: Jan 2006
Posts: 6,929
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From: A-320
11-28-2007 | 04:00 PM
#46
APC co-founder
Joined: Feb 2005
Posts: 5,853
Likes: 0
From: B777
Actually Exec. is owned by AMR and all pilots who fly for AE including Exec. are on the same seniority list. I'm not sure why AMR chose to keep Exec. a unique business, but it may have to do with the uniqueness of operating internationally out of PR and the certificates needed.
11-28-2007 | 04:30 PM
#48
Gets Weekends Off
Joined: Mar 2007
Posts: 152
Likes: 0
From: CEO
This is my thought exactly, and it is the route that makes the most sense to me. Look at this portion of jsled's original article post and it points right to the idea of an independent comapny with AA getting reduced rate feed.
"said AMR Chairman and CEO Gerard Arpey. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure."
Arpey noted that, in addition to AMR having put in place an independent American Eagle management structure, with a chief executive officer and chief financial officer, American Eagle also has a well-formed operational structure and organization and has produced independently audited financial results for the past several years. Earlier this year, American and American Eagle entered into a new regional flying agreement between the airlines that reflects market-based rates, which ensures that American continues to have access to quality feed on competitive terms. Arpey added that AMR's divestiture of American Eagle and the regional airline's ability to provide quality feed at competitive rates to other carriers, as well as American, will better position American Eagle to compete for new customers and growth opportunities in the future."
This will allow for Eagle to grow, which at the present time it cannot seem to do without permission from the mainline. May not be a bad thing for the pilot group either because with expansion comes upward movement. I may be way off base...after all, I'm not an airline guy.
"said AMR Chairman and CEO Gerard Arpey. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure."
Arpey noted that, in addition to AMR having put in place an independent American Eagle management structure, with a chief executive officer and chief financial officer, American Eagle also has a well-formed operational structure and organization and has produced independently audited financial results for the past several years. Earlier this year, American and American Eagle entered into a new regional flying agreement between the airlines that reflects market-based rates, which ensures that American continues to have access to quality feed on competitive terms. Arpey added that AMR's divestiture of American Eagle and the regional airline's ability to provide quality feed at competitive rates to other carriers, as well as American, will better position American Eagle to compete for new customers and growth opportunities in the future."
This will allow for Eagle to grow, which at the present time it cannot seem to do without permission from the mainline. May not be a bad thing for the pilot group either because with expansion comes upward movement. I may be way off base...after all, I'm not an airline guy.
Arpey's comments, and particularly the procedure of the independent audits, is a clear signal of the intent to undertake and IPO.
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