Chautauqua and American Amend Agreement
 

AMR Corporation and Chautauqua Airlines Amend Agreement

Kind of a bummer that the majors are going after the regionals again to reduce costs (hopefully the regionals don't try to convince their employees that they need to work for free to keep their contracts). At least Chautauqua is getting a longer contract term out of the deal.

Well, to extend the life of a 44 seat aircraft contract is pretty remerkable in today's market. 3% reduction will no doubt hurt the bottom line of CHQ, but it will not make the AA flying break even or unprofitable. While 2 aircraft will be removed from scheduled service, it is encouraging for CHQ that there is a provision for some compensation should no home be found for those 2 airplanes. All in all, it is a smart and realistic deal. AA flying makes up less than 8% of flying at RAH, and the decrease in compensation will not incur the need for pay concessions.

It seems to me that BB is scratching the back of all the partner airlines a little bit. Cash to Midwest, US Airways, Frontier, and Mokulele; reduced compensaton obligation for AA; and help for UA and DAL in bleeding Mesa with the HI operation.

That flying should be Eagle's anyways.

Alright...enough with the in-fighting. Holy cow this Regional section is getting to be about as bad as "Maury!"

And Rightseat is right - the fact that AA is renewing and lengthening a 44-seat contract. Wow...I hope Oil stays low!

umm.. how about no

i'm just gonna start bringing my own airplane to work with me and avoid any awkward whose is whose....

Couldn't AA and others hedge fuel at $65? (not trying to be sarcastic)

Absolutely, but if Oil remains volatile, so will the economy (and thus leisure travelers' discretionary income). Oil stability at some economically sustainable price will do wonders for us all...

they cant hedge fuel now cause they have spent all their money on hedging it while it was at 120 a barrel!

AMR is sitting on over 6B in cash.... more than anybody else can say at this point in the industry's history.