Really? Then exactly when will AMR just park all those money losing airplanes in the desert and furlough all those expensive pilots? When will Airways park the 28 CRJ200s PSA flies and just keep the profitable CR7s? Why is CAL still using ExpressJet? Why did UAL just hire ExpressJet and all those obsolete 145s?


Ten years ago two 50 seat ERJs could carry as many paying passengers as the 737, much cheaper and with more frequencies. Now they aren't as cheap, mostly due to fuel, but also because mainline wages are (relative to 10 years ago) down and feeder wages are up. But there are still lots of routes that the 737 is never going to serve because there just aren't going to be 100+ people to put in the seats. But they can still make a buck on that route with a 50 seater. 'The experiment with small high-CASM jets has come to an end', and they have found that just like the 747 you can't use them everywhere, all the time.

 

Ummmm....Delta just made a $500+ million profit for Q2. Oil did not go to $147 because of demand, it went there purely because of speculation. And believe me, there is PLENTY of more oil around. Ya might also note that capacity has finally been brought back under control. Even TP's don't make money at $147 a barrel.

 

Gee..........over 2 years ago Eagle was an even deader duck with 22 less CRJ-700's and several carriers were very interested. The only thing that scotched a deal was the terms. If AMR is truly serious this time, they'll make the terms more agreeable and a sale is more likely now then before, especially with the new larger RJ's.

I think your belief is mostly wishful thinking. Let's see what happens....................

 

You have to look at more than just the past Eagle Fly.

The present
*Quarterly reports have just been posted.

*Eagle was announced for sale right before Compass and Mesaba were sold.

*A new president at American and Eagle has been announced.

I don’t know but I would guess at 3 reasons why they are announcing the sale of Eagle.
1.) Fluctuate stock price before quarterly reports so keep people can keep bonus.
2.) Threaten APA that AMR is capable and serous about getting around scope.
3.) They see an opportunity to grow a company in hopes of a sale later. How much is Mesa worth?

 

Johnso,

The reason for $147 was mixed. It ended up being speculators. It started due to low oil output. The proper price for oil that summer was still north of 100.
I am curious, what do you base your belief on in there being "plenty of oil"? Oil production in Mexico, the North Sea, and USA has peaked.
Autocratic countrys oil supplies are basically guesswork/intelligence estimates due to no verification of their actual reserves.(many observers believe the prodution in Saudi Arabia has peaked, or will shortly...if true, this will be a disaster of enormous consequence for the Saudi Royal family and the politics of the region...not to mention how to support a population far too large for their resources)
Once an oil field has been depleted about 50%, it's production starts to drop,plus it takes more energy/cost to extract the remaining oil. If memory serves, the world oil production has decreased since 2007. Most say that it hasn't been above 2007 levels due to the world recession. We shall see.
Anyway...this is a bit of a ramble and the data and reasons for why world oil production will be difficult to increase in the future fills books.
Other than certain companies and govts who have vested financial/political interests in having us continue to believe that there is plenty of oil still to be cheaply had, I know of no authoritive thinkers who see a continuance of cheap oil.
(as an aside...we have already shifted our thinking to 80/bbl as the new norm).
As I said...curious as to your thoughts and info as to why you say plenty of oil.

 

Mesa has a share price of .04$ as of yesterdays close.

Its hard to envision a sale that would be beneficial to Eagle pilots.

 

I don't think it's quite that easy. $147 was pure speculation based. Iran had so much oil they couldn't sell they simply filled tankers and storage facilities to the max. They weren't the only one. Go pull articles and stories from back when it was $120+. There are several about how even though the price of oil was so high there simply wasn't enough demand for the output. Oil was being traded not for it's value but for it's speculative value. Just like a stock with a P/E ration oil started to have a false price on it's own. You don't go from $147 a barrel to $37 a barrel in months due to demand.


The world didn't suddenly stop driving, flying, shipping. On the flip side the world didn't simply double it's petroleum use in one year either. Oil speculation was a HUGE factor in the price of oil and since it's something all developed countries live by I think it needs to be heavily regulated on what's required to purchase/sell. Almost like the rules applied to "blind shorts" in the market. Johnso29 isn't wrong. (I don't know if I want to give his ego the boost of saying he's right *snicker*)

 

Lol!!! Thanks for the laugh man!

 

I said it on another post but it fits into this thread drift nicely.
Like all commodities, Oil is speculative. To stop the huge fluctuations in price, require the purchser to take delivery of that commodity. That will keep energy companies trading in oil, and invesment groups out.

 

You can't go by the stock price. The share are worthless when the reemerge from BK.