What

It's not on the company benefit to shrink Eagle overnight. That would leave a very senior pilot group. For this of you who don't work at Eagle. Eagle has currently awarded (not been to upgrade training yet) to an FO who has been on property around 4 1/2 years. Most captains with less than 8 years seniority don't hold lines and we have more captains with over 15 years seniority than we do with less than 10. Shrinking Eagle without movement would cost the company more than they would save, and besides who out here can just take out flying away. Understand we operate 275+ aircraft with over 3000 pilots. They will shrink Eagle as they move pilot not before. This is similar to Comair (Airline wanting to shrink the regional carrier) But they don't want to destroy it. The problem is the seniority of pilots. Our contract is already average with the rest of the industry. Also if AA goes BK, you guys think that the judge will just allow huge concessions of AMR employees while all of management receives pay raises. AMR CEO received an 11% pay raise in 2010! Huge aircraft order, absorbing Eagle Debt and now try to screw employees. Management has more at stake than the employees on this one, if not we would be in BK court already.

eaglefly

The primary reason AMR kept the AE debt was not dumping it in BK, but because they essentially HAD to. To cast Eagle out on it's own with a debt load that would certain to sink it by making it impossible to finance new aircraft and thus be unable to bid for other flying NECESSARY for it's survival, would be grounds for action from the shareholders.

johnso29

No, I'm pretty sure Compass was brought in to stab NWA pilots back. Mesaba pilots got 40+ CRJ900's while DC9's were parked in the desert and NWA pilots were furloughed.

B767

Can someone please explain, in Layman's terms, why the divestiture is better for the shareholders. AMR stock is a whopping $3.32. Now the shareholders will get stock in a, pretty much, worthless public company. How will they make money off the divestiture? Add to that that AMR will keep AE debt, which will lower the stock price. We can't be the only ones thinking AMR will file ch 11.

What

Also most of Eagles debt is the aircraft, well if AMR is going to transfer those to AA they have to take the debt as well. AA purchased the aircraft from Eagle this is how they kept Eagle's debt. AMR can't afford for Eagle to fail in the beginning, it will take years for them to spread the feed. Not sure if some of you are aware but AMR can actually outsource 50 seat flying right now, without Eagle being spun off, they do it with RAH, and they have done it in the past with TSA. Why didn't AMR just give more airplanes to RAH when they announced they were parking ERJ and putting 60 pilots on the streets. THis would have been a great way for the company to put pressure on the pilots by continuing the outsourcing.

What

"posible" divestiture = In negotiations with AA pilots while they start retiring and demand for pilots at AA starts to increase (they want to get the contract signed and relax SCOPE limitations) and also AE pilots approaching contract negotiations as well as need senior pilots to move on so we can lower pilot cost. AMR wants to feel Eagle, if not sold will continue with the potential of a spin off. Read all the quotes from AMR officials, AE could remain wholly owned but spreading the feed remains a priority.

B767

I thought negotiations for AE were up in 2013? What could the company possibly want us to give up? I'm still an FNG, but we don't even get 100% DH pay, while there are a few other regionals out there that do. We were industry leading in pay, now we're just standard.

Someone said there are a couple RFPs out there we're working on. One company has the planes, and all AE has to do is supply the pilots (which is what AE will be doing if divested anyways), and the other company says buy the planes and give us a price. With what money can AE purchase aircraft?

What

You mean we are going to supply "expensive" pilots to someone. Also AE contract is amendable in 2013, a year when with the way things are shaping up there will be the most movement we've had in the industry in the last decade. So AMR wants to extend the current "industry standard" contract. If we are spun off we will not own airplanes, we will just have pilots that are qualified in ATR, ERJ and CRJ 700. There aren't any ATR out there, the other ERJ are at TSA and XJT (for the most part) So that leaves us with CRJ 700. To fly any other airplanes we would have to create a new training program and this would take time and allot of money, not to mention the manpower that it would require to have additional check airman and instructors. We are already struggling to man the flying we have, how could we pick up more flying. Yea we can park airplanes that we fly for AMR so we can then fly for someone else. The sky is not falling but AMR is bad shape moving forward and it's desperate times for the leaders of AMR, so desperate moves might be ahead.

stbloc

Once they file BK the share holders are the last to get paid if any money is left when they auction off all the assets. The creditors are 1st to get paid, then the bond holders, and last the share holders. Which is why you are seeing a lot of guys putting in for early retirement. Once they file BK the stock becomes worthless and the employees and all AMR stock holders who own the stock loose all their money.

eaglefly

You are making WAY too many assumptions. Auctioning of assets occurs as the end game if a Chapter 7 liquidation. AA's BK path would almost certainly be a Chapter 11 reorganization and probably a pre-packaged (self-financed) one at that. Yes, common shareholders stock would likely become worthless (almost there now anyway) and some assets MAY be disposed of.