Eagle, PSA, and Piedmont

FM2436

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Jan 8, 2003
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Hummm? So what roles will these wholly owned subsidiaries play in the new American Airlines?

http://aviationblog....ys-merger.html/

American Eagle – will American Eagle be spin-off (sold)?

PSA – will PSA remain a wholly owned subsidiary and if so what type fleet should PSA operate 50-70 seats RJs, 70-90 seats RJs, 90+120 seats RJs)

Piedmont – will Piedmont remain a wholly owned subsidiary as the sole operator of turboprop aircraft and if so what type fleet should Piedmont operate (ATR-72s or Q400s). Should Piedmont go RJ?
 
Hummm? So what roles will these wholly owned subsidiaries play in the new American Airlines?

http://aviationblog....ys-merger.html/

American Eagle – will American Eagle be spin-off (sold)?

PSA – will PSA remain a wholly owned subsidiary and if so what type fleet should PSA operate 50-70 seats RJs, 70-90 seats RJs, 90+120 seats RJs)

Piedmont – will Piedmont remain a wholly owned subsidiary as the sole operator of turboprop aircraft and if so what type fleet should Piedmont operate (ATR-72s or Q400s). Should Piedmont go RJ?

Those are very good questions. I think sadly, they are all being set up to go the way of Comair. It looks as though the"New American" will become somewhat of a paper airline after the merger in the domestic feed area. The pilots just signed an agreement that allows something to the tune of 75% of the domestic flying to be outsourced. Hope to be wrong, but look at Piedmont. A carrier that could be doing some very lucrative flying but as thier planes come up for inspection they are not being replaced. While it would be nice to see them flying new airplanes I don't think it is anywhere in the plan.
 
Piedmont – will Piedmont remain a wholly owned subsidiary as the sole operator of turboprop aircraft and if so what type fleet should Piedmont operate (ATR-72s or Q400s). Should Piedmont go RJ?

There are definite economies in flying turboprops on some routes. I do think it would be wise to get Piedmont the newer Q400 Dash-8s or another substitute that can carry a full load while SIMULTANEOUSLY have enough fuel to go more than a city block.

The old Piedmont Dash 8 100s and 200s need to be melted down pronto into something that is actually useful. Beer cans comes immediately to mind.
 
Keeping multiple, wholly owned subsidiaries is for the purpose of having work groups bid against one another for work. They all stay.

http://www.airlineforums.com/topic/55135-so-will-we-be-mainline-or-eagle/page__st__12#entry981640

 
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There are definite economies in flying turboprops on some routes. I do think it would be wise to get Piedmont the newer Q400 Dash-8s or another substitute that can carry a full load while SIMULTANEOUSLY have enough fuel to go more than a city block.

The old Piedmont Dash 8 100s and 200s need to be melted down pronto into something that is actually useful. Beer cans comes immediately to mind.
Republic is buying a bunch of Q's - the first are to be painted with United Express colors. More are on the way and I could forsee Republic operating Q's for Eagle also as they are going to be a major player in the Eagle E-jet game.
My prediction is wholly owned eagle gets merged with Republic, and Piedmont gets shut down.
 
I think Eagle is in for a change. They are the ones in Bk. plus they have 118 emb 50 seaters. 79 less than 50 seaters. I can see the smaller jets going away. Don't buy into management not yet having plans made up. PDT/PSA miraculously had TA's signed recently. Eagles smaller airplanes will be traded for larger ones. Where they go us anyone's guess. But look for places that have overlap and you will see consolidation and either larger RJ's or a mix of mainline aircraft.
Eagle will most likely shrink. But there is a potential for growth when competition heats up between delta/American/united. Some new cities will be added.
 
http://aviationblog.dallasnews.com/2013/02/american-eagle-shows-off-the-new-feathers.html/

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AE-new-3-Feb.-25-2013.jpg
 
There are definite economies in flying turboprops on some routes. I do think it would be wise to get Piedmont the newer Q400 Dash-8s or another substitute that can carry a full load while SIMULTANEOUSLY have enough fuel to go more than a city block.

The old Piedmont Dash 8 100s and 200s need to be melted down pronto into something that is actually useful. Beer cans comes immediately to mind.

PDT has been looking for more dash's for years and has found none,none that have a low price tag that can be had cheaply. 2 or 3 dash8-100's are coming up on cycle limits this year meaning a fleet of 41 or 42 aircraft. Before Piedmont merged with alleghany, they had a fleet of over 60 aircraft,now with both carriers the fleet count is 44. PDT lost the 200's about 5 or 6 years ago.
If the dashes go away, some cities will have to be dropped such as HHH. It might be a new company line of thought that keeping a small old fleet for the sake of retaining several small cities is not worth the cost and parts for the dash8-100's are harder to come by. The ATR made a demo stop at SBY a few years ago but nothing ever became of it.
I have read many articles stating the virtues of turbo props but still no large orders for the type. They sell well in Europe, but in the states, the turbo prop is a non issue with the majors. More large RJ's have been ordered but no turbo props.
 
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How many aircraft have US purchased for the wholly owned regionals since the America West merger? That should give you an indication, right there.
 
They are going to have to. Delta is starting it now. How many regional airlines today are going to lease new airplanes and have 20 years of payments but only 5 or 10 year contracts. It's suicide. Delta is leading the way with purchasing the airframes then placing them where they can be operated for the cheapest.
Regional airlines are only going to be operators of the airplanes, they aren't going to own them or lease them.
Expect US Airways to trade in Eagles 135/145's for EMB 175's.
 
The one painted airplane is a CRJ700. They aren't going anywhere. 30% less fuel burn than the EMB 170. They are keeping some 145's. like the CRJ 200's.
 
Why paint them if your are going to change the name

Will the original American Eagle still have to change its name?
Yes, American Eagle, the company, is still vetting and looking at new names. With ExpressJet, SkyWest and Republic now flying under the American Eagle name, American Eagle, the company, still needs to be able to better market and differentiate itself as a company from other regional carriers.