American Eagle For Sale

[L1011Ret]

REALLY, Carty and Compton called it a merger at the time.

Yup, even APFAs JW called it a merger in congressional testimony. Everybody called it a merger but Maark767, how could that be?

 

[PRINCESS KIDAGAKASH]

If that were to happen. I am very interested as to how the TWU would handle it. Because I would assume that some would want to stay with AA as a line mechanic at a line station. How would one bump into the line "system"? Would bumping be limited to only displacing those without system protection? Would the TWU make a deal to allow unlimited bumping of overhaul mechanics displacing line mechanics as long as the overhaul mechanic had more senority? Would the displaced line mechanic have to backfill a vacancy at an overhaul base created by a bumping mechanic? Just a little thinking out loud on my part.

When the maintenance bases are split off from the line, people at the bases will be stuck there. The only way they will get back to AA is for them to re-interview for a job at AA and hope they get hired. That's what happened at Braniff when Dalfort was separated from Braniff.

 

[PRINCESS KIDAGAKASH]

Thats not true.. It has always been an aquisition..... anyone that knows anything about it, knows it as that , an aquisition. Get it right or dont post...

If you read the Allegheny-Mohawk ruling, it says MERGER, AQUISITION,TAKE OVER, BUY OUT are all the same thing and the term MERGER covers them all. TWA people need to shut up,especially those involved in the IAM-TWU integration. Allegheny-Mohawk was followed to the letter. The arbitraiter ruled, so deal with it!

 

[donttouchthebeauty]

hmmm, FAMikey, StrAAight, NHBB, where are you guys on this one??

 

[BoeingBoy]

hmmm, FAMikey, StrAAight, NHBB, where are you guys on this one??

Don't know about them, but as others have said I think it's a mistake in the long term. Nothing like transferring profits (whether real or paper) from in-house to real profits for someone else - who underwrites Mesa's losses on their Go operation if not US, UA, etc via fee for departure contracts.....

Also, contrary to what you stated earlier about AA being the first to divest, this will suck AA down to the level already achieved by the other network carriers. AA will be the last, not the first, to contract out the majority of their express feed.

Jim

 

[will fix for food]

A month ago Eagle employees were being told that the airline was going to park some planes because they didn't have enough pilots to fly them.

A couple weeks ago the APA, ALPA, and AMR came to an agreement allowing Eagle pilots to get AA seniority numbers and all of a sudden they announce that Eagle is going to BUY 25 more planes.

That deal falls through and all of a sudden AMR is going to listen to the bozo at FL, who they dismissed about a month earlier, and divest Eagle.

I don't know, but something smells fishy about all this.....

 

[AirLUVer]

Timing of this announcement is to boost share price, which in turn will boost SR management PUP stock payments. Every December last 3 years, share prices go up even though oil prices are at historic highs and profits are still basically flat to non-existant.

Three big issues will be in the event of a IPO or Sale:

1. Will Eagle still lease operations space within AA's SOC and HDQ or will they lease their own building and move. Training for Eagle pilots and Flight Attendents are done with leased space at AA's flight academy. There is a potential loss of revenue for AA if Eagle were to move their training to their own facility. This would definitely be the case in the event of a purchase by a competing regional operator.

2. How many Eagle employees will try to transfer to AA to forego a loss of benefits, a la SABRE spin off.

3. How this may affect non-rev rules for both Eagle and AA employees (D3's, Parents, Domestic Partners and Registered Companions).

 

[will fix for food]

Don't know about them, but as others have said I think it's a mistake in the long term. Nothing like transferring profits (whether real or paper) from in-house to real profits for someone else - who underwrites Mesa's losses on their Go operation if not US, UA, etc via fee for departure contracts.....

Also, contrary to what you stated earlier about AA being the first to divest, this will suck AA down to the level already achieved by the other network carriers. AA will be the last, not the first, to contract out the majority of their express feed.

Jim

True enough. Those won't be Arpey bucks being spent by American anymore. That will be real money leaving the corporation. It doesn't make any sense to put yourself in the position of paying someone else to do the flying in the future for the short term stock price shot in the arm now. Especially if FL and the others just want to get the price up so they can sell it. The only way I can see this make sense from a long term investor point of view is if Eagle is spun off and 1 share of the new Eagle stock + 1 share of the new AMR stock is > 1 share of the old AMR stock.

 

[BoeingBoy]

There's only one way this could make long-term economic sense to me. With today's fuel prices, a large fleet of <50-seat RJ's isn't economically viable (CASM is too high), so if AMR could sell off Eagle, not be committed to use them for express feed, use that money to get a fleet of larger RJ's/E-jets (along with either scope relief to allow using them or flying them on mainline), it could be a good move for the company. Getting the scope relief or mainline pay rate agreement would be the key, though.

but just selling Eagle off only to continue using them for express feed doesn't make sense to me.

Jim

 

[aafsc]

REALLY, Carty and Compton called it a merger at the time.

I went to the president's conference in MIA. Someone asked Arpey about recall extensions for F/As. To the delight of my ears, Arpey referred to the TWA transaction as an "ASSET PURCHASE". The fact is AA acquired TWA's assets in a Chapter 7 liquidation bankruptcy sale; Compton stated this when the deal first came out. And Princess is right, Allegheny-Mohawk was followed to the letter for mechanics and related and ramp, so the TWAers need to take her advice and shut their pie holes.

Also twaokc, I mean, swdriver, if your twisted wishful scenario of AE taking over AA were to occur, I highly doubt that AE would honor AA's agreement to provide TWA Inc. retirees with retiree medical.

 

[Colby]

Once again an Airline has employees runnings scared...Isnt that just about the way they operate? American Eagle Up for Sale... I read some of the Comments with about a Grain of Salt... What are we supposed to do...Start running Scared for something that is not a Positive thing? Hey just like I did before being Fuloughed from US AIR....... Lets wait until there's something to TRULY be concerned about. OH my God American Eagle Is up For Sale..... Yeah.... Who Wants Us ??????? Ill worry about it when It HAPPENS !!!!!! Sorry AA But I think You're stuck with us !!!!!

 

[Colby]

Im sorry let me add in that I just read the 1st paragarph in JETNET about this.... The Skateholders... the Last paragraph of the wonderful company that we work for...... Yeah they can't even manage...SHAREHOLDERS in the 1 st paragragh !!! Who are we dealing with... And let me add that they can't handle the Fact that they have Captains at AE that are making 100K and above... Guess what ..That's not our problem....Flow these guys though along with the TWA flight Attendants that have a right to work for AA and call it a Day. These people have lived up to there side of all agreements..... Call it a first in the Airline Business and give these people what they deserve... Don't be so damned Greedy and give the REAL WORKERS what they deserve !!!!!!!!!

 

[NewHampshire Black Bears]

There's only one way this could make long-term economic sense to me. With today's fuel prices, a large fleet of <50-seat RJ's isn't economically viable (CASM is too high), so if AMR could sell off Eagle, not be committed to use them for express feed, use that money to get a fleet of larger RJ's/E-jets (along with either scope relief to allow using them or flying them on mainline), it could be a good move for the company. Getting the scope relief or mainline pay rate agreement would be the key, though.

but just selling Eagle off only to continue using them for express feed doesn't make sense to me.

Jim

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Well "BB", I've got mixed feelings about "this".

But it appears OBVIOUS, NOW is a good time to consider ALL angle's !

First off(beauty are you watching ???) AA NEVER does ANYTHING Impulsively !!!!!!

That said, IF this thing turn out to be successful like the Sabre spin off, no harm/no foul.

Next, is to decide which routes to keep(AA), and which to let go. If it's to let routes.."GO", this is another step towards the GREAT ONE(s) plan of years Ago(CRANDALL)

This "could' free up AA/AMR to make Embraer..."An offer they CAN'T refuse"(Very typical of AA), and negotiate a pay rate for Ejets w/APA, and PRESTO, a sh!t load of well needed Ejets.
OR,

Do what NW is doing,.............create a "new" Eagle (of sorts), but under the AA certificate.

Bottom Line ??


I don't give a HOW they do it, just get the MUCH needed Ejets...painted, and flying
It would be similiar to having the F-100's back, but at a co$t savings.


Edited by moderator languague

 

[jimntx]

But the best thing is that maybe it'll put an end to that mantra that "everything is going over to Eagle."

MK

Nothing about this would prevent them from continuing to transfer flying to AE. Just as AX has gotten some of our flying at STL that was mainline when I was first recalled. Whether or not AE is in-house or not has nothing to do with that.

 

[L1011Ret]

If you read the Allegheny-Mohawk ruling, it says MERGER, AQUISITION,TAKE OVER, BUY OUT are all the same thing and the term MERGER covers them all. TWA people need to shut up,especially those involved in the IAM-TWU integration. Allegheny-Mohawk was followed to the letter. The arbitraiter ruled, so deal with it!

Who are you to tell others to shut up?