Official: Eagle to be divested
 

Looks like Eagle is finally/officially being spun-off into its own company/stock:

AMR Corporation Announces Intent to Move Forward With the Divestiture of American Eagle - Jul 20, 2011

AMR Corporation Announces Largest Aircraft Order in History With Boeing and Airbus - Jul 20, 2011

looks like a big order also,,,,

"Strategically for AMR, it would be beneficial, as we could, over time, diversify our regional feed with additional regional airlines to ensure we have access to the most competitive rates and service. A divestiture could provide Eagle an opportunity to vie for business of other mainline carriers and allow the carrier to grow."

I don't like this statement, sorry Eagle. I hope everything pans out for the better...

Where does this sound bad to you? This says that it will allow Eagle to ALSO gain flying for other carriers. To me this sounds like it COULD be a very good thing.

Also lets not forget that a divesture takes quite a bit of time to happen. I wouldnt begin to worry unless the details in the future say otherwise...

But wouldn't it also mean that they can bid out their flying to cheaper airlines if they can save a buck?

Yea, anything is possible I guess... I wonder how long after divestiture that Eagle is to continue flying for American before they have to start bidding like everyone else??

Part of the spinoff will include a CPA for whatever portion of flying AMR wishes to contract with Eagle and the rates will also be negotiated. Good luck guys/gals hopefully this is a good thing.

Yes.

That is not just implied - it is stated.

It's official - American Airlines is introducing regional whipsaw.

The next announcement will be from RAH and consist of just one word - "WINNING!"

from what I understand, everything remains the same for 5 years at least, our agreements do not start to expire for 5 years.

Hope you're right Boomer. I've heard that as well but the rumor mill is working overtime!

Hmmmmm, regional to be spun off so the mother can get better rates. Boomer, why is Comair de ja vu coming to mind?

Or Continental Express --> ExpressJet deja vu...if they're lucky.

NOT really for republic. The scope announced yesterday would still require the "new carrier" to take the airplanes and pilots AND ALPA to be able to take any route currently being serviced by eagle. Dont think RAH would like having ALPA in house

Try to be objective here, I know you don't want this to be a bad thing, but I don't think any regional partner has come out ahead when their major partner starts to try and distance themselves from them. Comair & XJT both come to mind.

"COULD be a good thing" just like buying a lottery ticket means you COULD be about to have a ton of money.....Yes, it could be good, but I really don't think the odds are there. Just trying to keep things real for ya, no need to overreact the other way either, I wouldn't leave if I was at Eagle, but you gotta be ready for BOHICA in this business.

Take a look at how the regionals have been treated since 9/11. Their legacy customers CONSTANTLY driving the price (product quality) down. AMR is now FINALLY doing that to their largest regional provider, as well as their most expensive.

Like others said, reference XJT and COMAIR. USAir was notorious for doing it to theirs in the 90's. To a lesser extent, and a bit of an apples to oranges comparison, AWAC and ACA with UAL.

Exactly. Eagle will now be free to put in a bid on Eagle's current flying.

Get ready for the SUCK!

Wanna really throw a kink in everybody's panties.....

how about they do flying for other One World Partners.....
They do it now as an AA code share... once spun off, and with the recent DOT authorization for anywhere there are open skies agreements; Eagle already is a member of the one world alliance... seems to me they woudl meet the definitions required to do that flying as stand alone flying; which explains their new scope additions detailing direct flying not done as part of a CPA... they could code share with Iberia and BA and everybody else....

They also will no longer be AMR owned, and could easily put all the 700's and ATR's on the executive certificate, order larger E190 or C-series and operate them on the code share and stand alones, and let the 135/140/145 and 50 CRJ's continue doing AA feed on the Eagle certificate.

With the larger C-series or E190's they could even interline with AA for their same routes they do now... just like AA did with jetBlue.



interesting times this will be

And the cycle repeats itself. AMR puts out RFP's, AE has to cut costs to be "competitive".

Wash, rinse, repeat......

AMR is so good at giving Eagle pilots brain damage...

+1
I really dont see this being a good thing for eagle at all...

Comair and Expressjet were stuck with a bunch of airplanes. They are transfering the planes to AA/AMR ownership and leasing them to Eagle.

Eagle has two operating certificates... one which can continue to fly small scope planes for AA... and the second which will be free to purchase larger aircraft. Eagles current planes will be completely paid off with 2 years. Eagle also obtained DOT authorization to fly anywhere under the open sky's agreement. Eagle itself is a member of the One World program and would be free to codeshare with any of the other One World partners.
It would also be free, with the larger planes certificate, to fly existing Eagle routes for AA as an interline provider like jetblue does except with larger planes.

They just did an end run around scope with the money coming back to the same shareholders.

Nope, AMR isn't splitting the stock to existing shareholders to lose value... that would be career suicide.

Incorrect. ExpressJet was not stuck with a bunch of airplanes. All of the leases for the aircraft ExpressJet flies are held by Continental. ExpressJet chose to hold on to the leases of 69 aircraft in order to prevent those aircraft from being given to another carrier and used as competition. They then took those 69 aircraft and created the branded ExpressJet Airlines/Charter. Most of these aircraft are now part of new CPA's with Continental and United. What American is doing with Eagle is the same old game every other carrier has done to its regional feed.

I will never say never in this industry, but do you really think that Eagle will go off and essentially create its own airline after it got burned by its mother carrier? Does that sound familiar to you? It has happened twice in recent memory and has turned out the same in each case. You are talking about immense expenses in a very tight and competitive environment. I think Eagle's death would come much quicker if this were the case.

[loud snoring]

Also incorrect for Comair. As Delta owns Comair, Delta owns Comair's planes. Anything Comair leases, Delta also leases.

When Delta went CH11, Comair went CH11. Otherwise the DIPs could grab Comair aircraft because they're really Delta's aircraft.

Delta and Comair could sign a 20 year deal to lease those aircraft back and forth for a dollar a month, or a million dollars per flight hour. Ultimately, they're still Delta's planes and financial responsibility.

When Delta had Comair abandon their HQ building, who was stuck making lease payments? Delta.

If Delta decided tomorrow to give all Comair's flying to the 20 other DCI carriers, who would still be making payments on Comair's aircraft leases? Delta.

This is incorrect.



This is correct.

Are you crazy dude?! 14% of your fleet consists of 37 seat RJs, 21% of your fleet consists of 44 seat RJs, and 42% of your fleet consists of 50 seat RJs! In total, 77% of your fleet consists of RJs with 50 OR less seats. You're insane to think ANY major/legacy carrier wants 37 or 44 seat RJs. The 50 seat RJ market is already saturated and heading for the desert, I don't know what you're smoking to think your 37 and 44 seat RJs can offer to other carriers.

This is true, especially with fuel costs. Carriers are looking to CRJ 7/900's and expect to see more Q400's flying those ERJ 145 routes.

I know I'm as far as they get from being an optimistic regional pilot. That said...

When Britney Spears dumped Kevin Federline, he probably thought he could go out and nail other rich, beautiful, sleezy superstars.

So should I pass on the interview I was offered at Eagle today?

Interview and if you get the job then decide.

I would not get too excited over the AA number. You're more likely to be furloughed at Eagle now. The math doesn't add up with 40 and 50 seat RJs. It did up till now because American had to subsidize them. Now it looks like that will come to an end.

You have no clue what you are talking about.:rolleyes:

Also curious about a few posts above... If I'm offered a class date, do I pass on it? Say in the next week or three?

Not sure why so many people think the 50 seat limit was an Eagle thing. That is pure AA, and it will stick! No one will fly feed for AA with anything more then that. Unless by some miracle the AA pilots give that up, and I do NOT see that happening!
Especially since a big part of that 460 plane order was for 260 airbus, with 124 seat Airbus 319's one of the three Airbus models being purchased.

AA subsidized the small jets because they added "feed" to the mainline. If the divested AE has to stand on its own and bid, at a profitable price, with 37 to 50 seat RJs they might be "underwater" pretty quickly. It's hard to make money on small jets if you are not getting a premium price. AA is not divesting AE to increase their costs--TAKE THAT TO THE BANK.

Take the AE offer? Up to you, but this business can change on a dime.

GF

I'm sorry to use you as an example but it's post like this that floor me. Why would you ask people on an anonymous board whether or not you should take a job?! Do you have another job lined up? Are you at a better place than Eagle now? If you answered no to either of these questions then you are not ready to work for the airlines. In this industry you need to make your own decisions and not from a webboard.