American Airlines - Southwest Airlines

[The Goose]

JO has enough problems right now. Skywest on the other hand....

If there continues to be consolidation in the regional sector it can do nothing but drive the price for feed up. American may just end up paying an arm and a leg in the future for something they essentially get for free now. Interesting.

My guess would be that a rationalized regional feed industry would charge the legacies just under the cost of providing their own feed in-house.

Only an opinion, but -

I'm starting to believe the hype about AE was no more than feeding the Icelanders a fish. The rhetoric seems to have toned down since they cut their stake in AMR save for a bit of noise when an AMR exec thinks about how much stock that could be had to sell.

Very true - why pay $10 for something and not have any control over a business entity when you could pay $5 or less and control the same entity?

As for rationalized - I'll grant you that Eaglet is more rational than AMR mainline, but does that say anything significant? Can't remember names but with one exception (?), Eaglet exists as contracts with smaller regional airlines that are much better managed than AMR mainline could ever dream to be. Except for the greed issue, why would Arpey and crew want to screw that up?

 

[ual777fan]

Only an opinion, but -

I'm starting to believe the hype about AE was no more than feeding the Icelanders a fish. The rhetoric seems to have toned down since they cut their stake in AMR save for a bit of noise when an AMR exec thinks about how much stock that could be had to sell.

Very true - why pay $10 for something and not have any control over a business entity when you could pay $5 or less and control the same entity?

As for rationalized - I'll grant you that Eaglet is more rational than AMR mainline, but does that say anything significant? Can't remember names but with one exception (?), Eaglet exists as contracts with smaller regional airlines that are much better managed than AMR mainline could ever dream to be. Except for the greed issue, why would Arpey and crew want to screw that up?

That is precisely why I never believed that AMR was seriously looking at spinning off AE. Why increase your costs for a short term cash gain. I'm glad Arpey took the long view regardless of what it does to the share price over the short term.

 

[Garfield1966]

Plus side, AA would get WN 700's to replace the M80's. That is the ONLY thing that would be good for that merger. Nothing else would make sense. DFW-NRT flight would be open seating.

Shot Gun......OH sorry, I got ahead of my self.