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Old 10-22-2008 | 11:32 AM
  #31  
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Originally Posted by rickair7777
Most majors will probably not bother to own regionals...AA would STILL like to get rid of AE.

But not for the reason you seem to think. The fact is that Eagle turns a profit, even with the outrageous fees AMR/AA takes from them.

Selling Eagle, just like they sold SABRE many years ago, and the recent sales of the Beacon Investments is all about divesting AMR of everything that DOES make money except for AA itself. Then AMR will be in the position to force a contract down the union's throats on their own terms, or simply bankrupt the company.... and since everything else was "divested" the courts can't use assets, and profits, from one to cover losses at AA.
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Old 10-22-2008 | 12:33 PM
  #32  
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As far as Pinnacle goes, are they not more of a liability to the new Delta with a 99% vote to strike and no contract in sight?
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Old 10-22-2008 | 12:49 PM
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Originally Posted by Mason32
You really don't understand how mainlines operate their in house regionals do you?
Yes... Poorly.

Eagle and Comair don't cost any more than anybody else.
WOW you need to read a little more before posting.

I mean, realistically, do you think the jet burns more Jet-A just because it Eagle or Comair on the side? or the ground power unit uses less fuel at in STL because it says TSA on the side? In the big scheme of things the cost differences are very little.
No but the efficiency of the fleets, MX programs, internal structure of the company, training facilities, etc. all add up to a huge difference. There's no way that Eagle can even think about touching RAH when it comes to operating cost. Not bragging about it just pointing it out.

On top of that, at least in the AMR case, you are talking about a company that is totally all about control... something they have less of with a subcontractor.
Yet they've been very happy with CHQ at least.

AA/AMR is all about brand protection and control, which is what led them to BUY their subcontractors and form Eagle in the first place.
They use to be before they started bleeding money into the streets with an old jet fleet, tons of long term debt, crews working for less, thousands of pilots on the street, -50% year to date return, and a market share that's in the pits. They are in survival and restructure mode. AE is not cheap. They're one of, if not the most, expensive regional out there. They are about brand protection which is why all the aircraft are painted the same. I don't think a pax really cares if there's a red wing or a blue wing on the tail. Lets not forget they wanted to keep TSA and furlough from AE but the unions stepped in. They already showed their opinion on things.
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Old 10-22-2008 | 12:54 PM
  #34  
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Originally Posted by ThunderChicken
As far as Pinnacle goes, are they not more of a liability to the new Delta with a 99% vote to strike and no contract in sight?
That's an easy to fix issue for DAL. DAL could simply put the gun to PNCLs head and say "Finish it or else".

Watch what you say about the 99% strike vote there are a few here that refuse to believe it lol.
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Old 10-22-2008 | 02:24 PM
  #35  
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Originally Posted by Mason32
Then AMR will be in the position to force a contract down the union's throats on their own terms, or simply bankrupt the company....

That's EXACTLY right. AMR and CAL just had more cash/assets/etc. to burn post 9/11 then the others and are just getting their "houses" in order before they get "theirs" through the courts.

IMHO, it will be a small miracle if both do not see bancruptcy courts in the not so distant future and why neither want to own subsidiaries at this point.

If the bancruptcy process is in their future, watch how fast they move towards mergers and assets when it's "safe to go back in the water".

Last edited by DeltaPaySoon; 10-22-2008 at 05:30 PM.
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Old 10-22-2008 | 04:30 PM
  #36  
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Originally Posted by ToiletDuck
I love reading these lol.
PNCL might not be the best company but every pilot I've met in ICT has been a real stand-up guy. I don't want to see anyone go the wayside. Being senior then having to go to the bottom of someone's list to FO 1st year pay is something I wouldn't wish on anyone.

As someone said before it might not be simply based on performance. Stability is a large issue. IE. If Mesa goes under that's a whole lot of flying to have to account for all the sudden. CHQ has already seen it's entire 37 seater fleet disappear. With the 50 seat market up in the air anyone could be in trouble.
I am sure they are...just as they are at Freedumb or U.S. Airways. They are all in it for the same reason as the next guy. Has NOTHING to do with pilot groups. It has EVERYTHING to do with management !
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Old 10-23-2008 | 05:53 AM
  #37  
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Originally Posted by DeltaPaySoon
PNCL is NOT Delta's darling carrier. After the merger, all of DCI will be Delta's chess board. I was flying with a guy the other day that made the point that the new mainline list should use its leverage to draw a line in the sand that gave DCI 3 carriers to choose from, not 7. All would be wholly owned and have flow through and flow back language. It made great sense for the ALPA carriers but seemingly the merged mainline won't support it fearing they have other issues to fight (Read: Don't care about regionals this time around either.)

Four regionals is one too many to fly on behalf of one carrier, let alone 7!

Now I understand attrition of some will naturally take place but I think this issue SHOULD be a big one for this new mainline to help ALPA gain more ground.

Back to the main quote; I agree that ASA and Skywest will not look as good after the merger as before.
You didn't really complete your thought. what makes you think PCL isn't the "darling"? Seems to me they are getting some major breaks lately. Doesn't hurt that Delta's Anderson and Pinnacle's Trenary are golf buddies.

But I agree with you that the DAL/NWA pilots missed ANOTHER golden opportunity to end the whipsaw which ultimately affects them. They could have brought the regional flying back in house, but still, they are too good to fly a Barbie Jet.
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Old 10-23-2008 | 07:52 AM
  #38  
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Originally Posted by ToiletDuck
No but the efficiency of the fleets, MX programs, internal structure of the company, training facilities, etc. all add up to a huge difference. There's no way that Eagle can even think about touching RAH when it comes to operating cost. Not bragging about it just pointing it out.
You still dont' get it.

Fleet efficiency? explain? Last I checked, RAH runs a wider range of types than Eagle or Comair

MX Programs? Last I checked it was a subcontractor EMB that aborted at JFK a few months ago because there was so much slack in the elevator cables that there was no elevator authority.... Last time I was in STL I saw AMR planes at TSA with 10 to 12 MEL stickers on the panel.... Yep, subcontractor MX is just great.

Internal Structure? Eagle is structured the way AA and AMR want it to be; they have no control of how understaffed/overstaffed other subcontractors are.

As for training facilities... if there is any doubt that AMR/AA/AE's training facility is the best in the nation then your drinking too much koolaid. Now, as for the cost... regardless of how much AA charges Eagle to use the training center, facilities and simulators... where does the money go? That's right, right back to AMR.

They can, and do, charge Eagle outrageous rates for every little thing, just to keep Eagle as "too expensive" on paper... the reality is that Eagle costs just about the same to run as a subcontractor whom they have less than control of, and can't use to move and shuffle money around.

Perhaps it is you who should do a little more reading....


Originally Posted by ToiletDuck
Lets not forget they wanted to keep TSA and furlough from AE but the unions stepped in. They already showed their opinion on things.
Wrong again. They never said that. The union was in process of filing a grievance over the transfered MIA flying. The previous arbitration in 2002 had already established what would be a violation.... in short, the transfer of equipment alone was not considered a violation without the transfer of routes or jobs. By transfering the MIA route to TSA, AMR violated a previously arbitrated ruling. As a result of the 2002 arbitration they could not Furlough at Eagle as long as AMR owned planes were being operated by pilots not on the Eagle seniority list....

So, I'll say again....
Perhaps it is you who should do a little more reading....
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Old 10-23-2008 | 09:43 AM
  #39  
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Originally Posted by Mason32
You still dont' get it.

Fleet efficiency? explain? Last I checked, RAH runs a wider range of types than Eagle or Comair
Like I said. Fleet efficiency. Last you checked RAH runs a wider range of fleet types? We have three. The CRJ, ERJ, and E-Jets. The CRJ was only taken because they were leased for pennies on the dollar. They are going away. RAH will be back down to their two fleet types. The cost of the ERJ operations are less than CRJ ops. The ERJs are more efficient as well. The cost to have your own training department with sims for the four different fleet types at AE costs an arm and a leg. RAH outsources training. Much cheaper.

AE's fleet. Only takes a couple clicks of a mouse to figure this out.
CRJ700
EMB135/140/145
ATR72
S340B

MX Programs? Last I checked it was a subcontractor EMB that aborted at JFK a few months ago because there was so much slack in the elevator cables that there was no elevator authority.
Just like I've said about every other post of yours there's never anything substantial to what you write. RAH doesn't subcontract their MX. The MX on our aircraft is very good. The elevator issue was do to slack in the cables after repeated wear due to wind gusts on the elevator with mechanical gusts lock. Embraer has since updated their MX program.

Is this outsourced MX???



Internal Structure? Eagle is structured the way AA and AMR want it to be; they have no control of how understaffed/overstaffed other subcontractors are.
Doesn't matter if it's the way AA and AMR want it to be. Point it it's more expensive.

As for training facilities... if there is any doubt that AMR/AA/AE's training facility is the best in the nation then your drinking too much koolaid.
There's no doubt? Why? Why's a sim at one place any better than another?
Now, as for the cost... regardless of how much AA charges Eagle to use the training center, facilities and simulators... where does the money go? That's right, right back to AMR.
Doesn't matter. There's still a cost associated with the sims. AMR can charge AE all they want but the money still comes out of AMR's pocket. A $20mil sim still costs money. If you can't utilize them around the clock then the operating cost jumps significantly. If they only operate 6hrs a day instead of 12 then their operating cost is much higher.

They can, and do, charge Eagle outrageous rates for every little thing, just to keep Eagle as "too expensive" on paper... the reality is that Eagle costs just about the same to run as a subcontractor whom they have less than control of, and can't use to move and shuffle money around.
Let me spell it out for you....


Last you checked it was contract MX: Wrong
Last you checked RAH has more fleet types than AE: Wrong
You think AE is as cheap as others: Wrong

When was the last time you checked? Just curious.
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Old 10-23-2008 | 09:46 AM
  #40  
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Originally Posted by John Pennekamp
You didn't really complete your thought. what makes you think PCL isn't the "darling"? Seems to me they are getting some major breaks lately. Doesn't hurt that Delta's Anderson and Pinnacle's Trenary are golf buddies.

But I agree with you that the DAL/NWA pilots missed ANOTHER golden opportunity to end the whipsaw which ultimately affects them. They could have brought the regional flying back in house, but still, they are too good to fly a Barbie Jet.

A few things;

1.) Regardless of the rhetoric on this site, Anderson DID know about the 900 contract getting yanked and was instrumental in getting the terms and performance issues under control before it was awarded the second time. I know others think different but to actually think that the CEO would not be in that loop.....irresponsible. Anderson may be a lot of things, lazy is not one. PNCL has a handful of aircraft, at this time, that has much of a future. The 200's have an EXTREME question mark as to how they will be utilized post merger.

2.) No contract. If Anderson was in a hurry to provide new lift to PNCL or a shift of lift, he needed numbers yesterday.

3.) Watch out for the possiblility of steady shifting of PNCL flying over the next few months (to 6 months), particularly out of IND. We'll see if it's realignment or complete replacement.

I wouldn't say that the 16 900's are a major break but more of the contract carrot others have seen in the past.

PNCL has a LOT of work to do (management) to secure their future as of today.
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