Eagle Divesture?
06-11-2010 | 10:54 AM
#11
Gets Weekends Off
Joined: Jul 2007
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I see your point, but the addition of a third major partner is very lucrative to SKYW, and they would run the numbers thoroughly before making a bid, just like they did with XJT 2 years ago. RAH has too much on their plate right now integrating Frontier and Midwest IMHO. GLTA
06-11-2010 | 11:49 AM
#14
SDQ Base Chief
Joined: Mar 2006
Posts: 6,079
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From: 320 CA
No, bur AMR might play ball and give a company like skywest a guarantee for flying X aircraft for a longer term contract.
06-11-2010 | 02:56 PM
#15
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Joined: Jun 2008
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Can you say CONTRACT Coming Up?
The only thing going on here is the upcoming contract negotiations. AMR knows they had a great deal with a ridiculous 16 year contract voted in by dinosours who are now gone, and the contract is soon to expire. The pilots are sick and tired of management and are looking forward to ending a nightmare of 16 years and AMR knows it. If they cry out "we want to sell off eagle", then the weak minded eagle pilots will back down off of any demands they may be thinking of, and AMR gets another long term method to abuse pilots. As far as I'm concerned......SELL SELL SELL......management, staffing, and crew scheduling, can't be worse.....maybe bad.....but not worse.
06-11-2010 | 05:12 PM
#16
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From: CRJ
As long at the sell comes with a long-term feed contract with AA, it would be a good deal. They set it up like Republic and Chautauqua to feed AA while slowly divesting the 50 seaters for larger aircraft at the mother airline. If anyone has a good idea on whether or not the APA will either give in on scope or the airline will have to seek bankruptcy protection and void scope, it would be AMR management.
06-11-2010 | 06:28 PM
#17
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Joined: May 2010
Posts: 51
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From: ATR
The only thing going on here is the upcoming contract negotiations. AMR knows they had a great deal with a ridiculous 16 year contract voted in by dinosours who are now gone, and the contract is soon to expire. The pilots are sick and tired of management and are looking forward to ending a nightmare of 16 years and AMR knows it. If they cry out "we want to sell off eagle", then the weak minded eagle pilots will back down off of any demands they may be thinking of, and AMR gets another long term method to abuse pilots. As far as I'm concerned......SELL SELL SELL......management, staffing, and crew scheduling, can't be worse.....maybe bad.....but not worse.
06-11-2010 | 07:20 PM
#18
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Out of curiosity what does eagle has that JB would want?
JB already has the interline agreement with AA and no one, not even embraer ,wants those 50 seaters.
You can't trade those e135/145 for points on E190, it is cheaper to buy E190 straight out that to burden yourself with that useless jet.
Add to that the fact that JB is very unhappy with the E190 program so they are only taking deliveries of what they can't cancel or defer and again one has to wonder What does Eagle has that JB or anyone for that matter would want?
do they have so much cash in hand that a leverage buy-out with eagle's own money is possible?do they have enough assets that it would make sense to do a leverage buy-out to sell the assets and still come out ahead? that is the only scenario that seems logical it Eagle has the cash and assets to finance it, and if that was the case wouldn't AA do it themselves to keep the profits of that?
JB has an interline agreement with AA. AA would love to extend it that APA has strong scope to prevent it form getting out of hand. Eagle has nothing to offer to JB that JB cannot do on their own or via AA interline agreement.
JB already has the interline agreement with AA and no one, not even embraer ,wants those 50 seaters.
You can't trade those e135/145 for points on E190, it is cheaper to buy E190 straight out that to burden yourself with that useless jet.
Add to that the fact that JB is very unhappy with the E190 program so they are only taking deliveries of what they can't cancel or defer and again one has to wonder What does Eagle has that JB or anyone for that matter would want?
do they have so much cash in hand that a leverage buy-out with eagle's own money is possible?do they have enough assets that it would make sense to do a leverage buy-out to sell the assets and still come out ahead? that is the only scenario that seems logical it Eagle has the cash and assets to finance it, and if that was the case wouldn't AA do it themselves to keep the profits of that?
JB has an interline agreement with AA. AA would love to extend it that APA has strong scope to prevent it form getting out of hand. Eagle has nothing to offer to JB that JB cannot do on their own or via AA interline agreement.
06-12-2010 | 02:54 AM
#19
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From: CA
American Airlines’ Executive Vice President-Marketing Daniel Garton was tapped yesterday to succeed Peter Bowler as president and chief executive officer of American Eagle. At the same time AMR also reiterated its intent to evaluate the possible divestiture of American Eagle. Before his departure, Bowler reported that American Eagle, which flew 16 million passengers last year coming in at number two in the industry behind SkyWest, was finally growing again “and playing a very central role in American’s corner-post strategy” at Miami, New York, Chicago, Dallas and Los Angeles.
“We are reducing point-to-point service to concentrate on hub flying and putting our assets in big critical markets where we can win market share,” he said. “The ATRs are ideal aircraft for serving high-volume routes within a 250-mile radius of a hub.”
The airline was increasing daily aircraft utilisation and was excited about taking delivery of its 22 CRJ 700s over the next months marking the airline’s first new aircraft delivery in five years. Scope clauses did not have to be amended since they allowed for the 22 new aircraft to be operated on top of the 25 CRJ700s already in use.
The new CRJs, outfitted in dual class configuration, will launch on 01-Jul-2010 in New York where American is in a pitched battle with Delta and Star Alliance’s United and Continental for the hearts and minds of one of the toughest markets in the world. The aircraft are configured with nine first class seats and 54 coach seats and first class will offer first class-level meals on all flights over two hours.
He also reported American Eagle was launching new routes at a record pace with 16 opened about three months ago. The company just received a favorable ruling on the arbitration between American and Eagle pilots which funnels Eagle pilots into American and, if American furloughs mainline pilots, they flow back to American Eagle. “That means the seniority chain is moving and makes us more attractive for new hires. We are currently hiring 20 pilots per month.”
He confirmed American’s plans to down grade the Caribbean markets where it has historically been the strongest. It is closing its San Juan hub in favor of moving its operations to Miami to support American’s north/south service to New York. He said the ATR 72 was especially useful in Miami given the number of military bases in the region In addition, half the aircraft that were based at San Juan have been moved to Dallas to support American there..
“We are reducing point-to-point service to concentrate on hub flying and putting our assets in big critical markets where we can win market share,” he said. “The ATRs are ideal aircraft for serving high-volume routes within a 250-mile radius of a hub.”
The airline was increasing daily aircraft utilisation and was excited about taking delivery of its 22 CRJ 700s over the next months marking the airline’s first new aircraft delivery in five years. Scope clauses did not have to be amended since they allowed for the 22 new aircraft to be operated on top of the 25 CRJ700s already in use.
The new CRJs, outfitted in dual class configuration, will launch on 01-Jul-2010 in New York where American is in a pitched battle with Delta and Star Alliance’s United and Continental for the hearts and minds of one of the toughest markets in the world. The aircraft are configured with nine first class seats and 54 coach seats and first class will offer first class-level meals on all flights over two hours.
He also reported American Eagle was launching new routes at a record pace with 16 opened about three months ago. The company just received a favorable ruling on the arbitration between American and Eagle pilots which funnels Eagle pilots into American and, if American furloughs mainline pilots, they flow back to American Eagle. “That means the seniority chain is moving and makes us more attractive for new hires. We are currently hiring 20 pilots per month.”
He confirmed American’s plans to down grade the Caribbean markets where it has historically been the strongest. It is closing its San Juan hub in favor of moving its operations to Miami to support American’s north/south service to New York. He said the ATR 72 was especially useful in Miami given the number of military bases in the region In addition, half the aircraft that were based at San Juan have been moved to Dallas to support American there..
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