American Eagle For Sale

MiAAmi

Veteran
Aug 21, 2002
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www.usaviation.com
AMR Corporation Plans to Divest American Eagle
Wednesday November 28, 2:00 pm ET


FORT WORTH, Texas, Nov. 28 /PRNewswire-FirstCall/ -- AMR Corporation, the parent company of American Airlines, Inc., today announced that it plans to divest American Eagle, its wholly-owned regional carrier. AMR, which has been engaged in an ongoing strategic value review process, believes that a divestiture of American Eagle is in the best interests of AMR and its shareholders and will be beneficial to American, American Eagle, their employees, and other stakeholders.
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The divestiture of American Eagle is intended to provide it with the structure, incentives and opportunities to win new business and provide new opportunities for American Eagle's employees. AMR also believes that the divestiture will enable American to focus on its mainline business, while ensuring American's continued access to cost-competitive regional feed. Once the two airlines are separated, it is expected that they will operate pursuant to a mutually beneficial air services agreement under which American Eagle will continue to provide American with regional flying of a scope and quality comparable to that provided prior to the separation and on terms that reflect today's market for those services.

AMR continues to evaluate the form of the divestiture, which may include a spin-off to AMR shareholders, a sale to a third party, or some other form of separation from AMR. The company expects to complete the divestiture in 2008; however, the completion of any transaction and its timing will depend on a number of factors, including general economic, industry and financial market conditions, as well as the ultimate form of the divestiture.

"The decision comes after a careful and deliberate evaluation of the strategy that will best enable us to continue to create value for our shareholders," said AMR Chairman and CEO Gerard Arpey. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure."

Arpey noted that, in addition to AMR having put in place an independent American Eagle management structure, with a chief executive officer and chief financial officer, American Eagle also has a well-formed operational structure and organization and has produced independently audited financial results for the past several years. Earlier this year, American and American Eagle entered into a new regional flying agreement between the airlines that reflects market-based rates, which ensures that American continues to have access to quality feed on competitive terms. Arpey added that AMR's divestiture of American Eagle and the regional airline's ability to provide quality feed at competitive rates to other carriers, as well as American, will better position American Eagle to compete for new customers and growth opportunities in the future.

American Eagle is a fully developed operating unit providing a full range of regional airline services with excellent employees and a modern fleet. It operates approximately 300 aircraft, with approximately 1,700 daily flights to more than 150 cities throughout the United States, Canada, the Bahamas, the Caribbean and Mexico. In 2007, American Eagle expects to generate annual revenues of approximately $2.3 billion.

The planned divestiture would include both American Eagle Airlines, Inc., which feeds American Airlines hubs throughout North America, and its affiliate, Executive Airlines, Inc., which carries the American Eagle name throughout the Bahamas and the Caribbean from bases in Miami and San Juan, Puerto Rico
 

FWAAA

Veteran
Jan 5, 2003
10,251
3,900
W o W

Maybe AMR can pull a CO by perfuming Eagle prior to its sale/IPO and then, once AMR has cashed in, re-negotiate the capacity purchase deals.

IMO, not a real good idea to divest Eagle. We'll see how it works out.
 

swdriver

Member
Oct 9, 2007
86
0
AA will shed itself of AE and then AE will take over AA and pay all employees besides the Pilots AE wages, with a staple job to all AA employees on the payroll before the AA/TWA merger. Former TWA employees will be given DOH at that time. It will be bitter sweet. AA employees deserve what they get.
 

furp

Advanced
Apr 10, 2007
154
173
AA will shed itself of AE and then AE will take over AA and pay all employees besides the Pilots AE wages, with a staple job to all AA employees on the payroll before the AA/TWA merger. Former TWA employees will be given DOH at that time. It will be bitter sweet. AA employees deserve what they get.
YOU ARE MORE ANNOYING THAN FIGERNAILS ON A CHALKBOARD OR EVEN WORSE THAN A BABY SCREAMING IN THE NIGHT!!!!! GROW UP!!!!!!!!
 

FWAAA

Veteran
Jan 5, 2003
10,251
3,900
YOU ARE MORE ANNOYING THAN FIGERNAILS ON A CHALKBOARD OR EVEN WORSE THAN A BABY SCREAMING IN THE NIGHT!!!!! GROW UP!!!!!!!!

He's nothing if not consistent. Gotta give him that. 28 posts and all say just about the same thing. B)
 

lpbrian

Veteran
Mar 7, 2004
687
105
Hopefully now we will no longer have to listen to the APA's moronic idea of combining the two carriers..
 
A

American Air Surf

Guest
AMR Corporation Plans to Divest American Eagle
Wednesday November 28, 2:00 pm ET


FORT WORTH, Texas, Nov. 28 /PRNewswire-FirstCall/ -- AMR Corporation, the parent company of American Airlines, Inc., today announced that it plans to divest American Eagle, its wholly-owned regional carrier. AMR, which has been engaged in an ongoing strategic value review process, believes that a divestiture of American Eagle is in the best interests of AMR and its shareholders and will be beneficial to American, American Eagle, their employees, and other stakeholders.
ADVERTISEMENT


The divestiture of American Eagle is intended to provide it with the structure, incentives and opportunities to win new business and provide new opportunities for American Eagle's employees. AMR also believes that the divestiture will enable American to focus on its mainline business, while ensuring American's continued access to cost-competitive regional feed. Once the two airlines are separated, it is expected that they will operate pursuant to a mutually beneficial air services agreement under which American Eagle will continue to provide American with regional flying of a scope and quality comparable to that provided prior to the separation and on terms that reflect today's market for those services.

AMR continues to evaluate the form of the divestiture, which may include a spin-off to AMR shareholders, a sale to a third party, or some other form of separation from AMR. The company expects to complete the divestiture in 2008; however, the completion of any transaction and its timing will depend on a number of factors, including general economic, industry and financial market conditions, as well as the ultimate form of the divestiture.

"The decision comes after a careful and deliberate evaluation of the strategy that will best enable us to continue to create value for our shareholders," said AMR Chairman and CEO Gerard Arpey. "We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure."

Arpey noted that, in addition to AMR having put in place an independent American Eagle management structure, with a chief executive officer and chief financial officer, American Eagle also has a well-formed operational structure and organization and has produced independently audited financial results for the past several years. Earlier this year, American and American Eagle entered into a new regional flying agreement between the airlines that reflects market-based rates, which ensures that American continues to have access to quality feed on competitive terms. Arpey added that AMR's divestiture of American Eagle and the regional airline's ability to provide quality feed at competitive rates to other carriers, as well as American, will better position American Eagle to compete for new customers and growth opportunities in the future.

American Eagle is a fully developed operating unit providing a full range of regional airline services with excellent employees and a modern fleet. It operates approximately 300 aircraft, with approximately 1,700 daily flights to more than 150 cities throughout the United States, Canada, the Bahamas, the Caribbean and Mexico. In 2007, American Eagle expects to generate annual revenues of approximately $2.3 billion.

The planned divestiture would include both American Eagle Airlines, Inc., which feeds American Airlines hubs throughout North America, and its affiliate, Executive Airlines, Inc., which carries the American Eagle name throughout the Bahamas and the Caribbean from bases in Miami and San Juan, Puerto Rico

Well, Folks..., here is the "real meal deal". American Eagle, is being hit with a lawsuit, in the State of California for violations of Wage/Hour laws. The case # 07-CV-00555-JCR , if anybody subscribes to (PACER) you can pull the case up online. AA thinks they might side step this issue, but...it is coming to their doorstep too! 1.) The other possability, will be to raise AMR share price, so (Mgmt. can cash in their stock options, and walk away) before the roof falls in, with Oil, Labor and the like.... :blink:
 

eolesen

Veteran
Jul 23, 2003
15,470
9,261
Interesting...

It would free Eagle to market services under their own name, similar to ExpressJet. It would also allow them to finally start providing services to other airlines, something they're restricted from today.

But, it also probably spells the end of the flow-thru/flow-back. Jets for Jobs didn't really work at US, so I wouldn't expect it to work for an emancipated Eagle.
 
Jan 11, 2006
545
0
Uh oh, someones "divesting" their AAssets... Gotta love you guys... Talk trash about other airlines selling off assets, and then AMR is the first one to turn around and divest.. Love the big red hand print from the BiAAtch slap in the face...Fab U Lous.... Perfume away -- Spritz spritz and splash...
 
OP
M

MiAAmi

Veteran
Aug 21, 2002
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www.usaviation.com
This could give AA more flexibility to order new planes after the sale. With contract negotiations coming and the need for replacement aircraft, this might be a good thing. Wallstreet seemed to like the announcement.
 
Jan 11, 2006
545
0
This could give AA more flexibility to order new planes after the sale. With contract negotiations coming and the need for replacement aircraft, this might be a good thing. Wallstreet seemed to like the announcement.


CNN Money talks about AA profit margins, which aren't as good as some might seem to think.. hmmm
 

L1011Ret

Veteran
Oct 31, 2002
1,326
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Well, wasen't it just a week ago that APA bowed out of an agreement with AE, ALPA (Eagle Pilots) and AA that would have allowed certain flo ups? And AA insisting it had the right to purchase 25 LBJs (little bitty jets) which APA rejected? It appears to me AA just told APA to jump off a cliff, something self destructive APA does well.
 

flyhigh

Veteran
Jan 4, 2003
657
0
Well beauty, if you look at it objectively I think all could say this is an unfortunate reaction to the market. I'm sure AMR has always looked at the value of spinning Eagle off but this timing likely coincides more with FL group going out there and barking about shareholder value. I'm not a fan of this at all as will likely make the issue of something in the 100 seat category even harder to answer. If AMR could have offered APA pilots some agreement on flow through...at least the money stays in the AMR till. With this, there's no incentive to an APA guy to look at the company's benefit. What I see more likely is AA focusing more on long haul and int'l only and getting more distanced from short haul flying over time. Some feeder airline (Eagle, ExpressJet, etc.) with 100 seaters will fly the feeders. If AA has nothing in the category, it leaves little to fight over. Maybe they will actually go the way Crandall spoke of years ago...just let the M80 die off and stick to wide-bodies...OY VEY!
 
Jan 11, 2006
545
0
Well beauty, if you look at it objectively I think all could say this is an unfortunate reaction to the market. I'm sure AMR has always looked at the value of spinning Eagle off but this timing likely coincides more with FL group going out there and barking about shareholder value. I'm not a fan of this at all as will likely make the issue of something in the 100 seat category even harder to answer. If AMR could have offered APA pilots some agreement on flow through...at least the money stays in the AMR till. With this, there's no incentive to an APA guy to look at the company's benefit. What I see more likely is AA focusing more on long haul and int'l only and getting more distanced from short haul flying over time. Some feeder airline (Eagle, ExpressJet, etc.) with 100 seaters will fly the feeders. If AA has nothing in the category, it leaves little to fight over. Maybe they will actually go the way Crandall spoke of years ago...just let the M80 die off and stick to wide-bodies...OY VEY!

I don't necessarily think its a great idea to sell off eagle, and it is partially a reaction and partially a prep for the days to come...
 
Oct 9, 2003
1,401
2
Well, it looks like American Eagle is on the chopping block. AA's maintenance bases will be the next part of the company up for sale. The people at AFW,TUL,MCI had better get a line maintenance spot as quick as possible,if they can. Once the bases are sold, those people will be stuck at an MRO with no flight benefits and knowing the evil TWU,probably lower wages as well.