AA/AE New/Old news?
03-14-2011, 04:32 PM
#1
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Posts: 1,857
AA/AE New/Old news?
Is AMR stirring the POT again? or its for real now?
AMR May Be Nearing Decision to Spin Off Eagle, Union Says - Bloomberg
AMR May Be Nearing Decision to Spin Off Eagle, Union Says - Bloomberg
03-15-2011, 05:39 PM
#3
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Posts: 90
Here's what the company is saying in the latest 10-K report, with interesting tidbit in bold:
In June 2010, AMR reiterated its intent to evaluate the possible divestiture of AMR Eagle, its wholly-owned regional carrier. The AMR Eagle fleet is operated to feed passenger traffic to American pursuant to a capacity purchase agreement between American and AMR Eagle under which American receives all passenger revenue from AMR Eagle flights and pays AMR Eagle a fee for each flight. The capacity purchase agreement reflects what AMR believes are current market rates received by other regional carriers for similar flying. Amounts paid to AMR Eagle under the capacity purchase agreement are available to pay for various operating expenses of AMR Eagle, such as crew expenses, maintenance, aircraft ownership (including the debt service on the loans made to finance the AMR Eagle fleet of jet aircraft), and aircraft lease payments for the AMR Eagle fleet of turboprop aircraft. AMR continues to evaluate both the desirability and the form of such a divestiture, which may include a spin-off to AMR shareholders, a sale to a third party, or some other form of separation. Any divestiture of AMR Eagle could involve the restructuring of some or all of AMR Eagle’s assets and liabilities, and the assumption of certain of AMR Eagle’s liabilities by American. If AMR were to decide to pursue a divestiture of AMR Eagle, no
prediction can be made as to whether any such divestiture would be completed, and the completion of any divestiture transaction and its timing would depend upon a number of factors, including general economic, industry and financial market conditions, as well as the ultimate form and structure of the divestiture. In addition, no prediction can be made as to the potential impacts on AMR or American of any divestiture of AMR Eagle due to, among others, uncertainties regarding the form and structure of any divestiture, the potential restructuring of assets and liabilities, and the nature and scope of any resulting amendments to the capacity purchase agreement between American and AMR Eagle.
http://phx.corporate-ir.net/External...R5cGU9MQ==&t=1
In June 2010, AMR reiterated its intent to evaluate the possible divestiture of AMR Eagle, its wholly-owned regional carrier. The AMR Eagle fleet is operated to feed passenger traffic to American pursuant to a capacity purchase agreement between American and AMR Eagle under which American receives all passenger revenue from AMR Eagle flights and pays AMR Eagle a fee for each flight. The capacity purchase agreement reflects what AMR believes are current market rates received by other regional carriers for similar flying. Amounts paid to AMR Eagle under the capacity purchase agreement are available to pay for various operating expenses of AMR Eagle, such as crew expenses, maintenance, aircraft ownership (including the debt service on the loans made to finance the AMR Eagle fleet of jet aircraft), and aircraft lease payments for the AMR Eagle fleet of turboprop aircraft. AMR continues to evaluate both the desirability and the form of such a divestiture, which may include a spin-off to AMR shareholders, a sale to a third party, or some other form of separation. Any divestiture of AMR Eagle could involve the restructuring of some or all of AMR Eagle’s assets and liabilities, and the assumption of certain of AMR Eagle’s liabilities by American. If AMR were to decide to pursue a divestiture of AMR Eagle, no
prediction can be made as to whether any such divestiture would be completed, and the completion of any divestiture transaction and its timing would depend upon a number of factors, including general economic, industry and financial market conditions, as well as the ultimate form and structure of the divestiture. In addition, no prediction can be made as to the potential impacts on AMR or American of any divestiture of AMR Eagle due to, among others, uncertainties regarding the form and structure of any divestiture, the potential restructuring of assets and liabilities, and the nature and scope of any resulting amendments to the capacity purchase agreement between American and AMR Eagle.
http://phx.corporate-ir.net/External...R5cGU9MQ==&t=1
03-15-2011, 07:51 PM
#4
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Joined APC: Aug 2005
Posts: 3,707
Yeap the news is from the ALPA MEC at Eagle, he likes to think he his important and every 6 days sends out an information release to all he media. He like to see his name in the paper. Makes him feel tall. By the way, no one else is talking except him. Nothing new and all smoke and mirrors from the union. Goes hand in hand as being in the back pocket of mgt.
03-27-2011, 09:22 AM
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Latest from the MEC. Now they're talking about AMR maintaining possession of the aircraft after divestiture and extending travel benefits to all divested employees for five years.
That doesn't sound good.
American Eagle Airlines
MEC Hotline
03/25/11
1. Update on Potential Divestiture of American Eagle
This week, the AMR Board of Directors met. One of the topics of discussion was the potential divestiture of American Eagle. Although the Board has yet to authorize the divestiture of American Eagle, we believe they will be in a position to do so shortly. The MEC is now operating with the expectation that a decision to divest could come as early as May.
Therefore, ALPA and company negotiators met this week to continue working on a ‘longevity initiative,’ a comprehensive plan to assist pilots who would like to transition to mainline carriers in doing so. This May, the final group of flow-through pilots who received a ‘make whole’ remedy (i.e., third or fourth year pay step at AA, retroactive B-fund contributions, etc.) will transfer to AA. Seventy-five percent of those who were offered the ‘make whole’ remedy accepted transfer to AA. That has provided for us a recent historical statistic from which to determine the types of elements that may make it possible for high longevity pilots to make the transition given their current life situation.
Once we have finalized a draft ‘longevity initiative,’ and now that our competitors have reported their 2010 financials, we will reevaluate Eagle’s competitive position in anticipation of our April MEC meeting. We are also continuing to move forward on the legal front by challenging AMR’s expressed desire to take ownership of Eagle’s aircraft prior to a divestiture. The MEC will be briefed on all of these subjects at the April meeting.
In addition, management announced today that they have reached an agreement with American Airlines to continue travel benefits for American Eagle employees exactly as they are today for a period of five years beginning at the time of divestiture.
The next all-pilot teleconference will be held on Friday, April 8th, at 1:00 p.m. Central Time. We appreciate all of the pilots who sacrificed their personal time to join last week’s teleconference and will continue to host them on a regular basis until there is some resolution to the question of Eagle’s future ownership structure.
That doesn't sound good.
American Eagle Airlines
MEC Hotline
03/25/11
1. Update on Potential Divestiture of American Eagle
This week, the AMR Board of Directors met. One of the topics of discussion was the potential divestiture of American Eagle. Although the Board has yet to authorize the divestiture of American Eagle, we believe they will be in a position to do so shortly. The MEC is now operating with the expectation that a decision to divest could come as early as May.
Therefore, ALPA and company negotiators met this week to continue working on a ‘longevity initiative,’ a comprehensive plan to assist pilots who would like to transition to mainline carriers in doing so. This May, the final group of flow-through pilots who received a ‘make whole’ remedy (i.e., third or fourth year pay step at AA, retroactive B-fund contributions, etc.) will transfer to AA. Seventy-five percent of those who were offered the ‘make whole’ remedy accepted transfer to AA. That has provided for us a recent historical statistic from which to determine the types of elements that may make it possible for high longevity pilots to make the transition given their current life situation.
Once we have finalized a draft ‘longevity initiative,’ and now that our competitors have reported their 2010 financials, we will reevaluate Eagle’s competitive position in anticipation of our April MEC meeting. We are also continuing to move forward on the legal front by challenging AMR’s expressed desire to take ownership of Eagle’s aircraft prior to a divestiture. The MEC will be briefed on all of these subjects at the April meeting.
In addition, management announced today that they have reached an agreement with American Airlines to continue travel benefits for American Eagle employees exactly as they are today for a period of five years beginning at the time of divestiture.
The next all-pilot teleconference will be held on Friday, April 8th, at 1:00 p.m. Central Time. We appreciate all of the pilots who sacrificed their personal time to join last week’s teleconference and will continue to host them on a regular basis until there is some resolution to the question of Eagle’s future ownership structure.
03-27-2011, 09:31 AM
#10
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Joined APC: Nov 2009
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Posts: 1,226
that sounds pretty crappy! Good luck allLatest from the MEC. Now they're talking about AMR maintaining possession of the aircraft after divestiture and extending travel benefits to all divested employees for five years.
That doesn't sound good.
American Eagle Airlines
MEC Hotline
03/25/11
1. Update on Potential Divestiture of American Eagle
This week, the AMR Board of Directors met. One of the topics of discussion was the potential divestiture of American Eagle. Although the Board has yet to authorize the divestiture of American Eagle, we believe they will be in a position to do so shortly. The MEC is now operating with the expectation that a decision to divest could come as early as May.
Therefore, ALPA and company negotiators met this week to continue working on a ‘longevity initiative,’ a comprehensive plan to assist pilots who would like to transition to mainline carriers in doing so. This May, the final group of flow-through pilots who received a ‘make whole’ remedy (i.e., third or fourth year pay step at AA, retroactive B-fund contributions, etc.) will transfer to AA. Seventy-five percent of those who were offered the ‘make whole’ remedy accepted transfer to AA. That has provided for us a recent historical statistic from which to determine the types of elements that may make it possible for high longevity pilots to make the transition given their current life situation.
Once we have finalized a draft ‘longevity initiative,’ and now that our competitors have reported their 2010 financials, we will reevaluate Eagle’s competitive position in anticipation of our April MEC meeting. We are also continuing to move forward on the legal front by challenging AMR’s expressed desire to take ownership of Eagle’s aircraft prior to a divestiture. The MEC will be briefed on all of these subjects at the April meeting.
In addition, management announced today that they have reached an agreement with American Airlines to continue travel benefits for American Eagle employees exactly as they are today for a period of five years beginning at the time of divestiture.
The next all-pilot teleconference will be held on Friday, April 8th, at 1:00 p.m. Central Time. We appreciate all of the pilots who sacrificed their personal time to join last week’s teleconference and will continue to host them on a regular basis until there is some resolution to the question of Eagle’s future ownership structure.
That doesn't sound good.
American Eagle Airlines
MEC Hotline
03/25/11
1. Update on Potential Divestiture of American Eagle
This week, the AMR Board of Directors met. One of the topics of discussion was the potential divestiture of American Eagle. Although the Board has yet to authorize the divestiture of American Eagle, we believe they will be in a position to do so shortly. The MEC is now operating with the expectation that a decision to divest could come as early as May.
Therefore, ALPA and company negotiators met this week to continue working on a ‘longevity initiative,’ a comprehensive plan to assist pilots who would like to transition to mainline carriers in doing so. This May, the final group of flow-through pilots who received a ‘make whole’ remedy (i.e., third or fourth year pay step at AA, retroactive B-fund contributions, etc.) will transfer to AA. Seventy-five percent of those who were offered the ‘make whole’ remedy accepted transfer to AA. That has provided for us a recent historical statistic from which to determine the types of elements that may make it possible for high longevity pilots to make the transition given their current life situation.
Once we have finalized a draft ‘longevity initiative,’ and now that our competitors have reported their 2010 financials, we will reevaluate Eagle’s competitive position in anticipation of our April MEC meeting. We are also continuing to move forward on the legal front by challenging AMR’s expressed desire to take ownership of Eagle’s aircraft prior to a divestiture. The MEC will be briefed on all of these subjects at the April meeting.
In addition, management announced today that they have reached an agreement with American Airlines to continue travel benefits for American Eagle employees exactly as they are today for a period of five years beginning at the time of divestiture.
The next all-pilot teleconference will be held on Friday, April 8th, at 1:00 p.m. Central Time. We appreciate all of the pilots who sacrificed their personal time to join last week’s teleconference and will continue to host them on a regular basis until there is some resolution to the question of Eagle’s future ownership structure.
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