eaglefly

Boy, that's a tough one.

Depends on what AA wants to keep on the U feed side and whom. They could sell or transfer a part of our ops to say RAH (Wexford ?) and set up a complex whipsaw scenario against any feeder that wants to continue suckling the AMR nipple, including us.

The possibilities are numnerous and the plan could be complex, with Eagle coming out fairly well or gutted. Our CBA (and us) are small potatoes in any wedding like this and it would be the mainline difficulties (or benefits) IMO that would carry the concept.

Of course, I'd have bet my flightkit that AMR would have never bought TWA and I was wrong.

AAflyer

I did not realize you had our CBA in hand and know this for fact.. I am trying to find the "language".

AA

AAflyer

NO kidding, that is what scares me... I would say this would be a good time for our two groups to get together and brainstorm, or we may be picked off one at a time.

AA

Puros

I see what you are saying, there isn't much choice left. If UAL and CO get together, well, guess what Aprey- you're stuck with the ugly chick. I do think the labor situation wouldn't be that hard to deal with by purchasing pieces of the company, perhaps avoiding even taking a single pilot with the transaction. BTW, LCC only had a paper profit, operationally it was a loss last quarter.

eaglefly

Maybe or maybe not, but would they WANT to ?

IMO, U has too many players that overcomplicate their feed and many of them aren't pirticularly desirable. Many of them operate 50-seaters as well. I'd bet at least SOME of them would survive and I would think Eagle would to, but might be whipsawed or partially transferred into a much smaller provider.

I'd look for a final solution should this whole possibility occur, that would include 2 or at most 3 feeders, each handling feed at every hub and forced to beg for scraps every 4 years.

AMR acts in its own best interest and yearns for the days of yesteryear (the '90's) where regional carriers were forced to live on their knees to see the next contract.

In order to use U's certificate, wouldn't that have to be the survivng carrier ?

I can't see AMR dumping the AA brand name, no matter how bad they want scope relief.

eaglefly

Our guys have been pitching that for years to the APA with unmentionable results..................I'm not holding my breath there.

texaspilot76

Your scope does not cover US Airways' contract. They will use the Airways certificate to operate the flights.

texaspilot76

Profit is profit, no matter which way you look at it. Anyway that is a whole different subject.

eaglefly

So you're hypothisizing that AMR is buying U almost STRICTLY for their feeders ?

Buy U mainline assets and merge that into AA mainline (AA certificate) and sell Eagle to U to operate an independant domestic carrier operating large RJ's on the U certificate (maybe run by Parker) ?

Hmmmmmm............................

I would think most of U mainline would likely disappear over a few years along with most of their uncompatable aircraft and the surviving feeders under U (those with larger RJ's) would merge together (perhaps with Eagle) to expand into a seperate domestic carrier with hundreds of E-190 type aircraft. AA becomes a smaller (then post U merger) International, transcon, long range domestic and "special market" player and U becomes a short/medium and some long range domestic behemoth with wildly profitable 100-seaters ?

In theory, I can see how that would make AMR drool as that way AMR controls both carriers seperately and reaps the rewards for domination and competitivness in both markets, but I'm not sure what the obstacles are ?

AAflyer

Then it will operated as a separate company. The second one Usairways flight is operated as an AA flight, or under codeshare it falls under our SCOPE clause.

I do not see AMR purchasing Usairways to operate them as a separate company. The whole concept in acquiring and or merging is to grow the companies and expand on the synergies of each carrier. ie Delta and NWA.

Considering the cost and outcome of TWA, I do not see an outright purchase. Asset purchase potentially.

In all this the company will do what it wants and in the end we will grieve what we feel is a breach of our contract.

AA