Ae Post Largest Profit

[capeman]

Govt results

Looks like Eagle earned 53.8 million. The conversion of some AA routes pays off for the red headed step child. See table 4.

 

[will fix for food]

Govt results

Looks like Eagle earned 53.8 million. The conversion of some AA routes pays off for the red headed step child. See table 4.

The real question I have is how much money Eagle contributed to AMR's bottom line. Did Eagle make over 53.8 million in revenues for AMR?

 

[capeman]

What gets me is that all these so called mainliners still do not get the picture. They sit around and dream of new routes or reflect on the old days. CLE gone. ACO BUF ROC ALB ISP PIT MDT, and many more, all gone for AA. Coming soon RDU with the next batch of layoffs. When is everyone on this board going to wake up and realize that Eagle will do the majority of domestic travel and AA will handle all international flying. Bob Crandall planned this years ago, but the scope clause got in the way. Now since 9/11 relief is on the corporate side. AA will take advantage of all the loopholes and get as much flying as they can to AE, or the connections. Which station is next?

 

[FWAAA]

If these numbers are to be believed, Eagle made more profit in Q1 than B6 or WN. 😱

Sounds like good news to me. AMR actually has a product than can produce larger profits than the darling LCCs.

Bring on the Doom and Gloom. B)

 

[AAviator]

Good one. Any business plan in this industry more than 6 weeks old is useless. Bob Crandall?

Capeman, explain to me how AE with casms at almost twice mainlines, makes money.

I read what you posted, now explain it to me.

 

[AAviator]

Actually, those are pretty good numbers to show a potential buyer, wouldn't you say?

 

[LaBradford22]

Looks like Eagle earned 53.8 million.

Keep in mind that the way Eagle is treated from an accounting perspective guarantees that they will show a profit. They are paid on a "fee per departure" basis. Basically, Eagle's total operating costs are lumped together, divided by the number of departures, and then a margin is thrown on top (can't remember if it's 5% or 10%). So, I hate to tell you this, but the fix is already in as far as Eagle making money goes.

Capeman, explain to me how AE with casms at almost twice mainlines, makes money.

CASM is largely a function of stage-length. If you stage-length-adjusted mainline carriers' CASM to Eagle's stage-length, that would be a better apples-to-apples comparison. For what it's worth, I bet Eagle's unadjusted RASM is much higher than any mainline carrier, for the same reason.

Actually, those are pretty good numbers to show a potential buyer, wouldn't you say?

Yeah, sell off Eagle. We can't have anything that smells like profitability sitting around at AMR.

 

[capeman]

Good one. Any business plan in this industry more than 6 weeks old is useless. Bob Crandall?

Capeman, explain to me how AE with casms at almost twice mainlines, makes money.

I read what you posted, now explain it to me.

Sure. AA pays AE on a departures. Does not matter how many people are carried. Basically AMR is funneling money from one pocket to another.