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American Airlines Group Inc. Message Board

  • fuzzhead72 fuzzhead72 Feb 14, 2014 8:30 AM Flag

    American Eagle wind-down & gate swap

    A couple of the American related news articles that I noticed this week were:
    A) American Eagle is going to be wound down & eventually liquidated
    B) gate swap to get more international access

    Anyone have thoughts on how either of these will affect the company over the long haul?

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    • 1) Getting rid of American Eagle is good, they don't even have to pay compensation for it!

      2) More international access is huge. AA does not have much presence in the internationals, but setting up their channels means big thing to come down the line

    • Well the question was regarding the effects of Eagle being wound down/liquidated. Since no one was interested in buying Eagle, I'd say they're really getting what they wanted. But it MAY not all work out ! They will be using Eagle pilots as a guaranteed source of future AA pilots. Well trained, proven history with the company etc. But they're flying in part due to SCOPE rules from the mainline pilots, aircraft, 37-50seaters that are worthless. Totally fuel inefficient and passengers despise them. As they lose pilots, they send back aircraft to Embraer. They'll lose pilots to other airlines which are revving up hiring, and to the mainline which currently has a flow through agreement to send X number of pilots to AA each month, guaranteeing trained pilots at their beck and call. They will then be contracting with other carriers to provide lift with more efficient Embraer 175 aircraft and a limited number of 190/195. The only problem is the likes of Republic, Endevour(formerly Pinnacle) are having extreme difficulties filling their cockpits. Chatauqua (sp?) recently announced they're sending back to lessors the vast majority of their own smaller jets due to pilot shortage, yet they STILL want to cut their pilot wages even more! ExpressJet pilots recently did the same thing Eagle pilots did. Stand up and say "Enough is Enough!" Can't blame them as Eagle had a deal with AMR coming out of BK and AAL then said "we want even more!". Over time it may work well for AA but it's not without risk. The reason AA, 30 years ago started acquiring their own airlines with small aircraft was so they could control the product more. In the future they'll again have little control over quality(they failed at Eagle with this too) and will in essence be sharing any profits with other carriers. You don't see the very successful Southwest Airlines hiring out flying to other carriers. The way I see it is this will disrupt the lives of thousands of pilots, all to save a buck.

    • havatoy Feb 14, 2014 8:53 AM Flag

      Not when you look at:
      $2.3 Billion (or $2.7 Bil?) spent in 4th Q 2013 for merger done.
      $2 Billion in new jet orders done-with 4% locked in loan rate for energy efficient NEW planes done (with 35 year life to benefit from).
      Renegotiated Union contracts DONE for lowered fixed costs
      Efficiencies of merger into the largest airline in US
      Revenue from sales of gates, while gaining market share.

      PLUS new creative revenue sources.
      I am sure AAL business model factored higher gas cost per gallon, but more efficient planes.
      Do you know AAL sold old mileage program to Visa for $1 Billion?
      If officers of AAL didn't believe, they would have sold their own options.
      Steady on the course brother!

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