http://abcnews.go.com/Travel/story?id=3929325&page=1Something you all need to think about is that the divestiture is NOT guaranteed. AMR has stated an "intention" to divest. They did the same type of move in 2008 and ended up backing out of it.

I'm not saying its the exact same situation, but there is no reason to get worked up until the dotted line is signed. On top of that even if it does go down, it isn't going to happen over night. It will take quite some time.

 

Still missing the point! AE and any OTHER regional who is interested in doing feed for AA will have to use 50 seat jets in order to do the flying! That levels the playing field. RAH would NOT be able to bid routes with E175, E190's! They would have to use the same 50 seaters Eagle does.
Eagle would have been in 175's, or 700's ages ago if they would have been allowed to.
Why do you think the CRJ700's we have, have first class seats? It was because we were not allowed to have a 70 seater..so yank some chairs out and spin it to the public.First class. lol

 

This is also very true. People forget the Ae contract is coming to a close. I still think it is plausible that this is a scare tactic to get concessions, and to get the top guys to leave eagle for AA. They have been saying for some time one of the reasons eagle is so expensive is because we are to top heavy. the top 361 people at eagle have 20 plus years service. the top 400 is 15 plus years. If they can thin out the top and get some concessions AA would be real Happy.

 

Unless AA abandons a route and let's a code share partner fly an airbus on it.

 

.... Deleted...
Not worth it.

 

It remains to be seen how this would affect Eagle, but some of the gloom and doom I've read is way over the top. Most importantly, AMR discussed divesting Eagle a few years back and didn't do it. I suspect they will do it this time, but it's not going to happen tomorrow or even next year.

Most importantly, the idea this move will lead to furloughs and tough times ignores what is about to happen with the industry. XJet and Comair got screwed because they're spinoffs took place during one of the worst decades ever known for airlines. It also happened to be one of the worst economic decades in 80 years.

The realities of the next decade are far different from the one we just finished because there is going to be a pilot shortage. The 65 rule just postponed the shortage for a few years. No matter what, airlines can make their current pilots younger.

For Eagle, it would likely be better to stay with AMR, but AA already gives routes to RAH. It's not the end of the world.

 

Yeah, except that takes work away from both AE and AA. With this order being placed by AA, which includes 260 airbi, of which there will be 124 seat A319's I don't see AA giving up or needing a 90seat RJ to do flying the 319 can/will do.

 

Thing is, 2008 was not the first, second, or even third time it came up. Divestiture has been a AMR discussion topic for more than 10 years. It keeps coming up and going away. If AMR can find a way to make Eagle more profitable that ALPA/the pilot group will agree to, I dont see any reason why they would go through with it. The whole seniority list being top heavy is in fact a large part of the problem (as was stated to a recent new hire class by the president). Unfortunately you cant really do anything about them until they decide to leave or retire. No one but the board REALLY knows what the plan is. Guess only time will tell....

 

SATCFI

You are the one missing the point! If 50 -seaters are not viable without the cross-subsidy by AA (basically, allocating more of fare to AE for the feed from the total AA fare) they won't be viable supplied by another airline bidding the contract unless the regional carrier bidding to supply AA can reduce costs elsewhere--can you say pilot's salary. Either fares have to rise or a more efficient way of delivering the feed must be set up.

Then, AA provides its own feed with A319 or their is relief on 70-90 seat RJs from the APA Pilot working agreement. Seeing as UAL is proposing a 95-seat RJ side letter to ALPA; DL is using lots of them, how do you think it will go?

I see some tense talking between AA, ALPA and APA. Someone is going to have to blink. AA is not too strong in the number three position of majors, squeezed by SW, domestically; by internationally by relative powerhouse DL and UAL (Pacific, especially). There are still concessions to be made, I fear.


GF

 

Definitely some good points....