AE to get E175's?
 

* Valor says AA to renegotiate $1.6 bln debt with BNDES

* AA may return jets to Embraer, CEO Horton tells Valor

Feb 8 (Reuters) - American Airlines is renegotiating terms of $1.6 billion in debt owed to Brazil's state development bank to help it emerge more rapidly from bankruptcy in the United States, a Brazilian newspaper said on Wednesday.

American Airlines Chief Executive Thomas Horton, who was named in November to the top post at the third-largest U.S. airline, declined to say how the company plans to pay the BNDES, according to a report by Valor Econômico.

The airline's parent company, AMR Corp, wants to rework terms of the debt, which it incurred to finance the purchase of Embraer planes between 1998 and 2002, as part of its bankruptcy restructuring.

The company filed for bankruptcy in November, saddled with over $30 billion in debt and a flagging market for its business.

It could return some planes to Embraer and pay down a portion of the BNDES debt, Horton told Valor, naming one potential alternative the company is working with.

"Embraer will assist both American Airlines and BNDES in the reassignment of the aircraft," an Embraer press representative said via telephone, adding that the company sees American's restructuring as an opportunity for future sales of larger jets such as the Embraer 175.

Press representatives for American Airlines did not respond to requests for comment while a spokesman at Rio de Janeiro BNDES did not have a comment on the Valor report.

Looks to me that it simply says that Embraer would like to sell AA/AE some E175s.

I have a feeling that Embraer would like to sell jets to every airline and flight department out there.

RJ Pilot, you, sir, and your thread title belong with this lot:

http://tfwiki.net/w2/images2/8/8d/Symbol_decept_reg.png

+1. I'm also sure AMR would probably want someone that has experience and associated costs for establishing training with the E-Jets to keep cost down. ie. RP, CZ.

I bet they say "connection" on the side if they ever hit the ramp.

Will the former "American Eagle" brand get E-175's ?

I think the answer is "yes", but it will be changed to a "One World" carrier with the same paint as American Airlines aircraft. In fact, these aircraft would be OWNED by American Airlines. The question is WHEN they get them and WHO will fly them.

The likely time to get them is AFTER exiting Chapter 11 bankruptcy when financing could be approved without going through a judge and American Airlines pilots will fight tooth and nail to ensure aircraft owned by American Airlines are flown by pilots on the APA seniority list. Quite possibly, current American Eagle pilots will be consolidated onto the AA list as there are already two agreements by ALPA at Eagle to offer future positions at AA to Eagle pilots.

They will say American Connection operated by Chautauqua Airlines on the side...:eek:

Embraer sees a big opportunity here if managements gets their way with scope. I hope AE gets all the new flying should it come about. However, it didn't mention a deal with American, only that there is an opportunity to sell jets due to American restructuring. My guess is the additional flying will be split up among multiple regionals. American wants to join the club and play multiple partners against each other. They spread out the flying between eagle and at least 2 other carriers once scope is relaxed, if that actually happens.

I think everything will have a "One World" scheme, so as to blur who actually operates the aircraft. The actual operator will be in fine print.

well fly them if we take concessions.