American Eagle Spin OFF will be like Express Jet?
12-11-2007, 11:38 AM
#11
Gets Weekends Off
Joined APC: May 2007
Position: CL65 First Officer
Posts: 274
What are the chances do you think that they willl keep open their BOS base????? Just curious cuase i almost went to EAgle because of that reason, but I like my decision that I made to come here to ASA, the BOS--ATL comute is cake....but i have a lot of friends over at Eagle and they seem to think AMR selling themis a good thing....thoughts on both BOS base and AE being sold??
12-11-2007, 12:15 PM
#12
Gets Weekends Off
Joined APC: Dec 2007
Position: wing-walker
Posts: 252
Originally Posted by snippercr
... but I cant help but feel that speculating, while can be useful, has no real impact in the long run. especially when we are talking more than a year.
I'm sending Eagle my application after Jan1. The only reason I'm choosing AE is b/c I live in Dallas, I love it here, and I don't have the flexibility to relocate. For me, living in my domicile and not commuting is worth its weight in gold!
The only thing I'm fairly certain of is that AE has a contract with AA until 2013 (please correct me if I'm wrong). So, there will be flying to do. Sometimes the biggest gambles have the biggest payoff...only time will tell.
Two quotes from wise pilots that mentored me:
1. When it comes to planning your aviation career just remember, Man makes plans, God laughs.
2. "Career? I've never had a flying career, just a series of 'gigs'!"
All the best to you!
BW
12-11-2007, 03:40 PM
#15
Gets Weekends Off
Joined APC: Feb 2007
Position: e190
Posts: 929
a good guess at what upgrade at xjet would be like is somewhere in the ballpark of 2.5-3.5 yrs. Both eagle and xjt are great places to work but each has their problems. Any regional is extremely risky and a good place now could be the worst in 2 yrs time... go somewhere with a solid contract, good pilot group, and a base that is near where you want to live. i dont think you would regret coming to eagle, xjt, skywest, ... you get the idea. good luck!
12-11-2007, 03:50 PM
#16
Gets Weekends Off
Joined APC: Jul 2007
Posts: 1,213
Originally Posted by flyguyniner11
love your avatar cfii2007 lol hilarious
"I personally believe that U.S. Americans are unable
to do so because, uhmmm, some people out there in our
nation don't have maps and uh, I believe that our, I,
education like such as uh, South Africa, and uh, the
Iraq, everywhere like such as, and I believe that they
should, uhhh, our education over here in the US should
help the US, uh, should help South Africa, it should
help the Iraq and the Asian countries so we will be
able to build up our future, for us."
12-11-2007, 07:16 PM
#17
Gets Weekends Off
Joined APC: Oct 2005
Position: E170/175 CA
Posts: 334
My opinion:
AE will be spun off to the stockholders. No one can afford to buy them outright, nor would anyone want to inherit such a large and expensive labor pool or a large fleet of aircraft with diminishing economics.
AE will strike a deal with AMR to maintain the current work load for 3-5 years. AE will be compensated per block hour or per departure at a reduced rate. This rate will be higher than the rate other regionals could fly at, but it will be a savings to AMR. Also, this will protect the continuity and quality of service for AMR. No one or even combination of regional carriers could assume the workload AE currently flies for years to come. That is a lot of aircraft and infrastructure to pull out of nowhere. After the 3-5 year period, AE will have the flying put out for bidding, but even then AMR can only afford to give away so much AE flying at a time. Just look at the cluster CAL created by spinning 44 aircraft lines from Xjet to CHQ. Any reduction in flying at Eagle will be slow and measured.
Some possible hiccups as far as the Eagle pilot group that I could forsee:
AE (once on its own) could sell off some assets, such as the Executive certificate, as a fund raiser. This is a clean way to offload aircraft and pilots at the same time. Or, AE could sell off a few aircraft at a time. Other nations are still trying RJs and used props. In all, I see eagle slowly becoming a pre-CHQ Xjet... a stand-alone company that eats off of one plate, just for a little less than before. Over time, it may see some of its flying auctioned off, but that is years down the road. As long as AMR gets the same Eagle product for a reduced cost (which can still be profitable for Eagle), then things will be pretty stable and unremarkable.
AE will be spun off to the stockholders. No one can afford to buy them outright, nor would anyone want to inherit such a large and expensive labor pool or a large fleet of aircraft with diminishing economics.
AE will strike a deal with AMR to maintain the current work load for 3-5 years. AE will be compensated per block hour or per departure at a reduced rate. This rate will be higher than the rate other regionals could fly at, but it will be a savings to AMR. Also, this will protect the continuity and quality of service for AMR. No one or even combination of regional carriers could assume the workload AE currently flies for years to come. That is a lot of aircraft and infrastructure to pull out of nowhere. After the 3-5 year period, AE will have the flying put out for bidding, but even then AMR can only afford to give away so much AE flying at a time. Just look at the cluster CAL created by spinning 44 aircraft lines from Xjet to CHQ. Any reduction in flying at Eagle will be slow and measured.
Some possible hiccups as far as the Eagle pilot group that I could forsee:
AE (once on its own) could sell off some assets, such as the Executive certificate, as a fund raiser. This is a clean way to offload aircraft and pilots at the same time. Or, AE could sell off a few aircraft at a time. Other nations are still trying RJs and used props. In all, I see eagle slowly becoming a pre-CHQ Xjet... a stand-alone company that eats off of one plate, just for a little less than before. Over time, it may see some of its flying auctioned off, but that is years down the road. As long as AMR gets the same Eagle product for a reduced cost (which can still be profitable for Eagle), then things will be pretty stable and unremarkable.
12-11-2007, 08:08 PM
#18
Line Holder
Joined APC: Jan 2007
Position: ERJ 145 Right
Posts: 76
Originally Posted by Rightseat Ballast
My opinion:
AE will be spun off to the stockholders. No one can afford to buy them outright, nor would anyone want to inherit such a large and expensive labor pool or a large fleet of aircraft with diminishing economics.
AE will strike a deal with AMR to maintain the current work load for 3-5 years. AE will be compensated per block hour or per departure at a reduced rate. This rate will be higher than the rate other regionals could fly at, but it will be a savings to AMR. Also, this will protect the continuity and quality of service for AMR. No one or even combination of regional carriers could assume the workload AE currently flies for years to come. That is a lot of aircraft and infrastructure to pull out of nowhere. After the 3-5 year period, AE will have the flying put out for bidding, but even then AMR can only afford to give away so much AE flying at a time. Just look at the cluster CAL created by spinning 44 aircraft lines from Xjet to CHQ. Any reduction in flying at Eagle will be slow and measured.
Some possible hiccups as far as the Eagle pilot group that I could forsee:
AE (once on its own) could sell off some assets, such as the Executive certificate, as a fund raiser. This is a clean way to offload aircraft and pilots at the same time. Or, AE could sell off a few aircraft at a time. Other nations are still trying RJs and used props. In all, I see eagle slowly becoming a pre-CHQ Xjet... a stand-alone company that eats off of one plate, just for a little less than before. Over time, it may see some of its flying auctioned off, but that is years down the road. As long as AMR gets the same Eagle product for a reduced cost (which can still be profitable for Eagle), then things will be pretty stable and unremarkable.
AE will be spun off to the stockholders. No one can afford to buy them outright, nor would anyone want to inherit such a large and expensive labor pool or a large fleet of aircraft with diminishing economics.
AE will strike a deal with AMR to maintain the current work load for 3-5 years. AE will be compensated per block hour or per departure at a reduced rate. This rate will be higher than the rate other regionals could fly at, but it will be a savings to AMR. Also, this will protect the continuity and quality of service for AMR. No one or even combination of regional carriers could assume the workload AE currently flies for years to come. That is a lot of aircraft and infrastructure to pull out of nowhere. After the 3-5 year period, AE will have the flying put out for bidding, but even then AMR can only afford to give away so much AE flying at a time. Just look at the cluster CAL created by spinning 44 aircraft lines from Xjet to CHQ. Any reduction in flying at Eagle will be slow and measured.
Some possible hiccups as far as the Eagle pilot group that I could forsee:
AE (once on its own) could sell off some assets, such as the Executive certificate, as a fund raiser. This is a clean way to offload aircraft and pilots at the same time. Or, AE could sell off a few aircraft at a time. Other nations are still trying RJs and used props. In all, I see eagle slowly becoming a pre-CHQ Xjet... a stand-alone company that eats off of one plate, just for a little less than before. Over time, it may see some of its flying auctioned off, but that is years down the road. As long as AMR gets the same Eagle product for a reduced cost (which can still be profitable for Eagle), then things will be pretty stable and unremarkable.
BINGO,we have a winner.... I was going to post some long and rambling thoughts, on this scenario myself, but you pretty much took the words out of my mouth.
Like us here at XJT, AE will either adapt, or slowly atrophy and die. However any major changes will likely be gradual. Nobody will win if AMR chops Eagle off at the knees, and brings in a handfull of various low bidders, overnight; not Eagle, Not American, not AMR shareholders, not the employees.
The jury is still out for another 3-5 years on how this thing will really pan out for Express Jet. There are lots of risks. The status quo is no longer a viable option, if we are going to suceed long term. That being said, I think we have a good team over here. We still have significant resources, and no one is going to roll over and play dead. The burning question/concern in my mind is, what are the true break even economics of 50 seat Regional Jets in stand alone service, with $100/barrel oil, even for a well run operation?
Diversification of revenue streams is critical. Branded service is a huge part of this. Hopefully, with big risks will come big rewards. History has not been kind to start up airlines since deregulation, but this spin off of existing, fairly well capitalized operations, is pretty much uncharted territory. Stay tuned...
Last edited by PoBugSmasher; 12-11-2007 at 08:13 PM.
12-11-2007, 08:37 PM
#19
Line Holder
Joined APC: Feb 2007
Posts: 53
Here is the scenario that everyoine here at the Eagle BNA station likes the best (whether it has any chance of coming to reality I do not know).
Virgin America is having trouble expanding its routes because they can't get landing slots or gates at many of the eastern and southern airports. If they were to buy Eagle they would have an instant growth that would also include the caribean. They could then turn around and compete with American in most of their cities. There are not many cities at all that American flies into that eagle doesn't also serve. And at a few of the cities Eagle employees actually do the ground handling and gate work for the American Flights.
We also see this as a plus for eagle because we can now buy larger regional jets without worrying about the scope clause in the American pilot contract.
This is just my 2 cents.
Virgin America is having trouble expanding its routes because they can't get landing slots or gates at many of the eastern and southern airports. If they were to buy Eagle they would have an instant growth that would also include the caribean. They could then turn around and compete with American in most of their cities. There are not many cities at all that American flies into that eagle doesn't also serve. And at a few of the cities Eagle employees actually do the ground handling and gate work for the American Flights.
We also see this as a plus for eagle because we can now buy larger regional jets without worrying about the scope clause in the American pilot contract.
This is just my 2 cents.
12-11-2007, 08:47 PM
#20
Line Holder
Joined APC: Jan 2007
Position: ERJ 145 Right
Posts: 76
Originally Posted by wrf2e
Here is the scenario that everyoine here at the Eagle BNA station likes the best (whether it has any chance of coming to reality I do not know).
Virgin America is having trouble expanding its routes because they can't get landing slots or gates at many of the eastern and southern airports. If they were to buy Eagle they would have an instant growth that would also include the caribean. They could then turn around and compete with American in most of their cities. There are not many cities at all that American flies into that eagle doesn't also serve. And at a few of the cities Eagle employees actually do the ground handling and gate work for the American Flights.
We also see this as a plus for eagle because we can now buy larger regional jets without worrying about the scope clause in the American pilot contract.
This is just my 2 cents.
Virgin America is having trouble expanding its routes because they can't get landing slots or gates at many of the eastern and southern airports. If they were to buy Eagle they would have an instant growth that would also include the caribean. They could then turn around and compete with American in most of their cities. There are not many cities at all that American flies into that eagle doesn't also serve. And at a few of the cities Eagle employees actually do the ground handling and gate work for the American Flights.
We also see this as a plus for eagle because we can now buy larger regional jets without worrying about the scope clause in the American pilot contract.
This is just my 2 cents.
They might sell you the aircraft, but unless your flying feed for American, you're gonna be on your own as to where to fly 'em and park 'em.
Thread
Thread Starter
Forum
Replies
Last Post
Breton
Hangar Talk
0
06-24-2005 02:53 PM
