Official: Eagle to be divested
#51
Line Holder
Joined: Oct 2008
Posts: 64
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From: EMB145 FO
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
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
Here is how I'm Not missing the point. You said eagle couldn't compete because they had 37-50 seaters. As it stands neither would any other carrier that would bid on AA feed. Yes you are correct pay is an issue with AE we have a lot of top heavy pilots on the roster.
If by some chance AA pilots give in and AA begins to allow feed in 70 or 90 seat airplanes(wouldnt hold my breathe on that), well then eagle would too! We already have 50 on property. yank those first class seats out and there we go.
I'm just saying compare apples to apples. eagle would not be held to bid 37-50 seat airplanes while regional b would be bidding E175's.
#52
LOL!!! Funny, and true!! On a more serious note, I hate seeing Comair all over again. I went through that in CVG, It was awful. Guys, and gals, as others suggested, in this case, history is an excellent teacher, albiet a cruel one, or is that experience-or both?
Last edited by On Autopilot; 07-21-2011 at 04:44 AM. Reason: typo
#53
Moderator
Joined: Oct 2006
Posts: 13,088
Likes: 0
From: B757/767
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
IOW, far away from more 76 seaters.
Also, the 95 seat RJ proposal by UAL management is simply a counter proposal to UALPA's proposal that all jets over 50 seats be flown by Unical pilots. It's simply a counter proposal. As of now, UAL's scope allows unlimited 70 seaters, & CAL's allows unlimited 50 seat jets and 79 seat turboprops.
Point being, no one allows 95 seat RJ's and it's highly unlikely you'll see further scope relief from anyone. The current scope in place was a result of BK for everyone but AA, & I don't see any pilot groups budging.
#54
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.
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.
Comair was NOT spun offf. Comair is still owned by Delta and Screwed by Delta
#55
I should have clearer, DL has lots of 70 seaters, poor sentence structure on my part. Still, the economic attraction of regional airlines, flying anything from 70 seats to, even 110 seats is going to be hard for airline managements to resist. There are several planes (E190, C-series, etc) on the drawing board which only make sense if they can be crewed at RJ wages, either they fail as designs, the mainline contracts carve out a pay rate for them or agree the mainline unions change the scope clauses.
As to "unions not budging", well I've been in this rodeo since before B-scale, they'll budge, take that to the bank. Here's an example, when I was working on my private, a local airline captain (UAL) bragged the job paid a "Cadilliac a month", which in 1968 was true. And Captains lived in Greenwich, CT or LaJolla, CA. Far from true today.
GF
As to "unions not budging", well I've been in this rodeo since before B-scale, they'll budge, take that to the bank. Here's an example, when I was working on my private, a local airline captain (UAL) bragged the job paid a "Cadilliac a month", which in 1968 was true. And Captains lived in Greenwich, CT or LaJolla, CA. Far from true today.
GF
#57
Can't abide NAI
Joined: Jun 2007
Posts: 12,078
Likes: 15
From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
I thought Eagle had exclusive scope over American's "connection" flying. Did this change? If so, how and why?
It reads like other carriers can now bid for the flying you have performed. Is that true?
It reads like other carriers can now bid for the flying you have performed. Is that true?
#58
Unfortunately for the Eagle guys, I imagine AA is writing the prenup as we speak.
#59
I was referring to Jet Blue flying "abandoned" American routes under the code share agreement.
#60
It's in the process of changing now Bar. AMR is jealous of Delta's ability to whipsaw mainline against regional and regional against regional. So regardless of whether Eagle stays wholly owned or spun off AMR is going to put it's regional feed out to bid.
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