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American Air to increase regional fleet


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101 replies to this topic

#97
eolesen

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Considering F9 just announced they're outsourcing all station handling except for DEN, there won't be all that many employees left to bring up to AA payscales.
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#98
WorldTraveler

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true... if I were AA I still wouldn't want to be handing UA and WN the gun they can use to shoot me.
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#99
eolesen

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Dunno. I don't see as much risk there as you apparently do.

It's my opinion that DEN is over-served. It's one out of several regulation era hubs that existed because of geography and poor aircraft performance. Just like STL, MCI, SLC, DAY, CMH, IND.

As a metro area, with 2.6M people, it's smaller than MSP, STL or BOS.

Certainly big enough for a fair degree of nonstop service, but has never really been able to justify 300+ flights a day with two hub carriers, much less three.

If a deal happened, there's very little connecting traffic that couldn't just as easily move via PHX or DFW. Keep the codeshare with Great Lakes, and pretty much all the same bases are covered.
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#100
WorldTraveler

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it's simply a matter of recognizing the competitive implications of strategic moves..... pilots at other competitors have long had concerns about Republic and Frontier's business connections and some pilot contracts forbid cooperation with regional carriers that have large jet operations in the same corporate structure - or impose tough restrictions to eliminate the possibility of transferring wealth from one subsidiary to another.

The same principle applies to DEN as a hub. DEN is a mess and has been for years; CO decided to close its DEN operation because the city wasn't large enough to support two hubs plus Frontier's presence which was much smaller and complementary at the time. WN's decision to enter the market accelerated the problem.

AA and DL should do nothing to help WN and UA solve the problem. The sooner DEN improves for UA and WN, the sooner WN and UA can use their improved finances to target DL an AA elsewhere.

There are other ways for DL and AA to obtain regional jet services.
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#101
eolesen

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it's simply a matter of recognizing the competitive implications of strategic moves..... pilots at other competitors have long had concerns about Republic and Frontier's business connections and some pilot contracts forbid cooperation with regional carriers that have large jet operations in the same corporate structure - or impose tough restrictions to eliminate the possibility of transferring wealth from one subsidiary to another.
[snip]
There are other ways for DL and AA to obtain regional jet services.


Sure, there may be other ways for DL and AA to obtain RJ services, but the exact same "where does the money flow" ownership issue is in large part what has prevented Eagle from being able to secure contracts for feed flying with other majors.

The only viable regional operator other than Republic is Skywest. Mesa's a financial basket case. Neither of them wanted to buy Eagle.

A deal between RJET and AMR is a "unique corporate transaction" can only be done between these two companies. Short of a three-way, there's not too many other options which help RJET and AMR escape the common ownership conundrum.


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#102
usa1

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American Eagle Sees Room for Consolidation

http://online.wsj.co...2691646754.html
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