I'm betting AMR's asking price is too high. Who wants to pay for a used up airline with aircraft that have interiors held together with duct tape? She won't sell unless they bargain basement the price and throw in guaranteed feeder traffic for 20 years and give some type of warranty on the tin.
Word is Skywest was interested but AMR had far too many strings attached so they are going after Expressjet instead. The way things are going there are only going to be a few feeder operators left to bid on AMR's flying. Not much competition makes for higher prices. A/A may be paying through the nose soon for what Eagle is doing now.
Word is Skywest was interested but AMR had far too many strings attached so they are going after Expressjet instead. The way things are going there are only going to be a few feeder operators left to bid on AMR's flying. Not much competition makes for higher prices. A/A may be paying through the nose soon for what Eagle is doing now.
AMR clearly missed the window on a big payoff for a spinoff/IPO/sale of Eagle. CO perfected the scam a few years ago when it dressed up XJT and took advantage of investors. If Arpey or Horton or any of the others think they're gonna be able to get anything of value NOW for Eagle (ala CO's pillage when it sold XJT), they really are dense. To keep the cliche train moving . . . that ship has sailed.
AA CFO Horton,.............writes in todays JetNet that,
1. A/E IS for sale,
AND,
Will be "GONE" by years End !
He also stress's BALANCE SHEET...over, and over, and Over again !!!!!!!!
(Think ..."5" BILLION CA$H on hand), and replacing S-80's quickly, but NOT so fast as to do anything $TUPID.
IMHO, that tells me, that Domestic cuts will be the "order of the day", or more to the point,.."the order of the YEAR(s)" (The way this friggin' oil $h1t is going) :down:
Interesting times ahead Kiddies.
This is starting to look like 1980-1983 all over again.
Eagle may be for sale, but I don't think anyone's gonna pay real money for it.
American Beacon Advisors will bring in $480 million - that's real money - but mutual fund management is a profitable business, so no wonder it could be sold for half a billion. Flying a couple hundred RJs these days is not a profitable endeavor.
Horton says it will be gone by year-end? I predict either a fire-sale price to save face or a simple spin-off to AMR shareholders (which won't bring AMR any money). Either way, it's a stupid plan, IMO.
