- Status
[BR]I'm very involed in the Union and we always get the heads up. ALPA got a call from the press about a big announcement the company will partake about the Executive Airlines faith.[BR]Alpa called our Union delegates and gave us the info. Plus our MECP got a call from AE HDQ that they she needed to contact them A.S.A.P. no later than tommorow(Nov6,02)morning. Well lets wait and see Im praying that it wont happen but It really doesn't look good.[BR][BR]Heres a copy of Peter Bowlers Skyline message from Nov1,02....[BR][BR]Below is a copy of the AMR EAGLE Hotline(Skyline) from Peter Bowler American Eagles President..... [BR]Hello, and thanks for calling. This is Peter Bowler with a Skyline update for Friday, November 1st. [BR]Over the course of the past week, American Airlines Chairman Don Carty and President Gerard Arpey held meetings with AA union leaders and yesterday met with a group of agents, support staff and management employees. [BR][BR]These briefings were intended to describe AMR's financial situation, provide background on the causes and severity of the company's problems, and increase awareness about the steps the company has taken to address those problems. [BR]Over the past few days, several of the other senior leaders of American Eagle and myself met with Eagle's union leaders from AFA, TWU and ALPA to cover the same information as well as provide more specific information on Eagle's financial performance. Like American's briefings, these discussions were aimed at making sure leaders of our unions understand the challenges we face and the actions we have taken so far to address them. The financial crisis at AMR is very real. It is not just cyclical or seasonal, nor will it heal itself. The fundamentals that have guided this business for so long, especially regarding revenues, have changed and we must change as well. [BR]I also took the opportunity to discuss other issues specific to Eagle, addressing the comments made last week during a conference call by AMR's chief financial officer about the possibility of a sale of American Eagle. [BR]Certainly, the sale of Eagle has been an option that has been evaluated many times in the past. Given the size of the losses AMR has reported and the need to raise and conserve cash, it's natural that this topic be raised once again. The sale of Eagle is not imminent, although it is a possibility. [BR]I know this is a worry to some of Eagle's people. However, as long as we operate safely and reliably and as long as we keep our costs down, I'm convinced we have a solid future in the airline business. During this highly volatile time, it is more important than ever that we keep our costs as low as possible so that we can survive when revenues are as low as they are today. We must also stay flexible so that we can respond quickly to threats, such as a war with Iraq, or opportunities such as the failure of a competitor. [BR]As we continue to evaluate and revise our business, you can rest assured that we will never make decisions which jeopardize our core goals and values. We are not going to do anything to cut corners regarding safety or that would compromise our strong operational performance. [BR]On a more positive note, Eagle took delivery of three new CRJs (numbers 6, 7 and 8) this week after an important modification had been completed on these aircraft. Ten more CRJs are scheduled to be delivered in 2003, and the remaining seven in 2004, bringing our total CRJ fleet to 25. In addition, Eagle took delivery of its 39th and 40th ERJ 140 this week - the 44-seat version of the ERJ - bringing our total RJ fleet to 141 aircraft. [BR]Taking delivery of these aircraft and putting them into service means we will be flying more available seat miles, or ASMs. This is a good thing but unfortunately, it has a down side as well. As I shared in my briefings with the union leaders, there does not appear to have been much progress made in the discussions between AA and the APA regarding relief from the scope clause in general or the ASM cap in particular. Given that, and the continued delivery of new aircraft, it means we will bump up against the ASM cap in the first quarter next year. [STRONG][FONT size=4]Unfortunately, it still seems that the sale of Executive Airlines will be the best way of complying with this constraint. [BR][/FONT][/STRONG]All of us have an enormous stake in the future of this company. We care about doing what's right to provide a safe and reliable service and in the process earn a living to support our families. In order to do this, we must be realistic about the challenges we face, creative and committed to finding solutions. [BR]Thank you for the fine job that each of you do every day to continue operating Eagle safely, reliably and efficiently. [BR]If you would like to contact me, you can do so by calling 800-555-2670 or send me an e-mail at [A href=mailto
[email protected]][email protected][/A]. Peter Bowler [BR][BR]Well thats all I know Ill keep you posted
[email protected]][email protected][/A]. Peter Bowler [BR][BR]Well thats all I know Ill keep you posted
Well we all guessed it was going to happen. So its bye-bye-bye for SJU/MIA Executive Airlines.
I wonder who is going to buy us out. I hope its not HOOTERS AIR....I just don''t have enough hoots to fluant around..LOL
MAD as hell but need to have a good sense of humor when they cut off our heads and feed then to the lions. Anyway it was fun being part of AMR for the past 10 years that I have been in the company..as the song goes from the SOUND OF MUSIC..
So long ...farewell I have to say good-bye...I flip,I float I can not say a lie... were byebye....
I wonder who is going to buy us out. I hope its not HOOTERS AIR....I just don''t have enough hoots to fluant around..LOL
MAD as hell but need to have a good sense of humor when they cut off our heads and feed then to the lions. Anyway it was fun being part of AMR for the past 10 years that I have been in the company..as the song goes from the SOUND OF MUSIC..
So long ...farewell I have to say good-bye...I flip,I float I can not say a lie... were byebye....
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[TD]Posted on Wed, Nov. 06, 2002[/TD]
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[DIV class=body-head][STRONG][FONT size=4][SPAN class=headline]AMR to unload operator of American Eagle[/SPAN][BR][/FONT][FONT size=-1][SPAN class=byline]BY INA PAIVA CORDLE[/SPAN][/FONT][/STRONG][BR][b][FONT size=-1][SPAN class=creditline][A href=mailto:[email protected]][email protected][/A][/SPAN][/FONT][/b][BR][/DIV]
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[TD align=left colSpan=2][IMG height=162 alt=COST-CUTTING MOVE: The sale of Executive Airlines may be a precursor to the disposal of American Eagle, an affiliate of American Airlines. AP File photo. src=http://www.miami.com/images/miami/miamiherald/4457/19866581773.jpg width=250 border=0][/TD][/TR]
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[TD align=left colSpan=2]COST-CUTTING MOVE: The sale of Executive Airlines may be a precursor to the disposal of American Eagle, an affiliate of American Airlines. AP File photo.[/TD][/TR][/TBODY][/TABLE][BR][/TD][/TR][/TBODY][/TABLE][SPAN class=body-content][!-- begin body-content --][SPAN class=body-content]
[P]AMR Corp., urgently trying to stem losses and bring in cash, is expected to announce today the spinoff of Executive Airlines, the operator of Miami and San Juan flights for American Eagle.[/P]
[P]The sale may be a precursor to the disposal of the remaining operations of American Eagle, a regional carrier that is an affiliate of American Airlines.[/P]
[P]An American Eagle spokeswoman would not confirm the spinoff Tuesday, but said it is something the airline has thought about for some time.[/P]
[P]''When we have details, we'll go public,'' said spokeswoman Lisa Bailey.[/P]
[P]Three sources close to American Eagle say a deal is almost certain to be announced this morning and could be completed by the end of the year.[/P]
[P]American Eagle has shrunk its operations in Miami since Sept. 11, 2001, and now ranks as the fourth-largest carrier at Miami International Airport. Year-to-date, American Eagle has flown 880,936 passengers through MIA, representing 3.9 percent of the airport's passenger volume, said airport spokeswoman Inson Kim.[/P]
[P]The regional carrier began flying out of Miami in 1991 with 12 19-passenger Jetstreams. It now flies at least 50 daily flights aboard 46- and 64-seat turboprops.[/P]
[P]In Miami, the airline employs at least 270.[/P]
[P]AMR has announced it would slash 7,000 jobs by March, while it cuts capacity and costs, parks planes and delays aircraft deliveries. Unable to push leisure fares higher, the company is combating the decline in domestic business travel, lower Latin American traffic and a surge in low-cost competition in San Juan.[/P]
[P]When AMR announced a staggering $924 million third-quarter loss last month, Chief Financial Officer Jeff Campbell told analysts the company would consider selling noncore assets, such as American Eagle.[/P]
[P]''Chairman [Don] Carty has said that everything is on the table,'' Bailey said. ``We're looking at all sorts of options. Nothing is being ruled out.''[/P]
[P]AMR paved the way for the sale of Executive on Oct. 1, transferring all of the turboprop aircraft flown out of Miami to Executive Airlines' Federal Aviation Administration operating certificate. Miami region employees were also transferred to Executive last month.[/P]
[P]Previously, Executive encompassed only the San Juan flights and employees.[/P]
[P]Rumors have swirled for months regarding potential buyers for Executive. They include Chatauqua Airlines, a regional carrier that provides service for American Connection; Caribbean Star Airlines, a small Antiguan carrier that expressed interest in the past; or the previous, San Juan-based owner of Executive, which sold the carrier to AMR.[/P]
[P]AMR could also take Executive Airlines public in an initial offering or sell the operation to a group of investors and managers.[/P]
[P]''All the majors are considering what they have that they can sell that can create liquidity and allow them to focus back on core operations,'' said Coral Gables aviation consultant Stuart Klaskin, partner in Klaskin, Kushner & Co. ``And these sorts of sales are a classic example of both.''[/P]
[P]Depending on the buyer, the Executive sale may be largely transparent to South Florida passengers, Klaskin said. However, it would mean that American Eagle's regional jets would not be placed here.[/P]
[P]Pilot members of the Air Line Pilots Association say they oppose the sale.[/P]
[P]''The sale of Executive would break the basic promise that American Eagle made to its pilots in 1997, when they agreed to combine all the carriers that make up American Eagle into one airline,'' said James Magee, spokesman for the American Eagle unit of the Air Line Pilots Association. The airline has 152 pilots in Miami and 260 in San Juan, said Ron Lovas, a spokesman for ALPA.[/P]
[P]Flight attendants and pilots also say they are concerned that a buyer might not have an interline agreement with American, which would affect the flying benefits that they enjoy today. The airline has about 125 flight attendants in Miami and 120 in San Juan, said Patricia Hoefener, former president for the American Eagle unit of the Association of Flight Attendants.[/P]
[P]American Eagle started service in 1984, with two carriers serving eight cities from Dallas/Fort Worth. Over the next several years, three other airlines were added, and two of the five merged.[/P]
[P]In 1997, the four surviving carriers -- Executive, Simmons, Flagship and Command -- were combined into American Eagle. However, Executive, because it was based in San Juan, retained its separate operating certificate.[/P]
[P]From Miami, American Eagle's destinations include Freeport, Nassau, George Town and Marsh Harbour, Bahamas, and Fort Myers, Jacksonville and Key West.[/P][/SPAN][!-- end body-content --][/SPAN][/TD][/TR][/TBODY][/TABLE]
[P] [/P]
[P]For story verification: [A href=http://www.miami.com/mld/miami/business/4451681.htm]http://www.miami.com/mld/miami/business/4451681.htm[/A][/P]
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[TD]Posted on Wed, Nov. 06, 2002[/TD]
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[DIV class=body-head][STRONG][FONT size=4][SPAN class=headline]AMR to unload operator of American Eagle[/SPAN][BR][/FONT][FONT size=-1][SPAN class=byline]BY INA PAIVA CORDLE[/SPAN][/FONT][/STRONG][BR][b][FONT size=-1][SPAN class=creditline][A href=mailto:[email protected]][email protected][/A][/SPAN][/FONT][/b][BR][/DIV]
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[TD align=left colSpan=2][IMG height=162 alt=COST-CUTTING MOVE: The sale of Executive Airlines may be a precursor to the disposal of American Eagle, an affiliate of American Airlines. AP File photo. src=http://www.miami.com/images/miami/miamiherald/4457/19866581773.jpg width=250 border=0][/TD][/TR]
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[TD align=left colSpan=2]COST-CUTTING MOVE: The sale of Executive Airlines may be a precursor to the disposal of American Eagle, an affiliate of American Airlines. AP File photo.[/TD][/TR][/TBODY][/TABLE][BR][/TD][/TR][/TBODY][/TABLE][SPAN class=body-content][!-- begin body-content --][SPAN class=body-content]
[P]AMR Corp., urgently trying to stem losses and bring in cash, is expected to announce today the spinoff of Executive Airlines, the operator of Miami and San Juan flights for American Eagle.[/P]
[P]The sale may be a precursor to the disposal of the remaining operations of American Eagle, a regional carrier that is an affiliate of American Airlines.[/P]
[P]An American Eagle spokeswoman would not confirm the spinoff Tuesday, but said it is something the airline has thought about for some time.[/P]
[P]''When we have details, we'll go public,'' said spokeswoman Lisa Bailey.[/P]
[P]Three sources close to American Eagle say a deal is almost certain to be announced this morning and could be completed by the end of the year.[/P]
[P]American Eagle has shrunk its operations in Miami since Sept. 11, 2001, and now ranks as the fourth-largest carrier at Miami International Airport. Year-to-date, American Eagle has flown 880,936 passengers through MIA, representing 3.9 percent of the airport's passenger volume, said airport spokeswoman Inson Kim.[/P]
[P]The regional carrier began flying out of Miami in 1991 with 12 19-passenger Jetstreams. It now flies at least 50 daily flights aboard 46- and 64-seat turboprops.[/P]
[P]In Miami, the airline employs at least 270.[/P]
[P]AMR has announced it would slash 7,000 jobs by March, while it cuts capacity and costs, parks planes and delays aircraft deliveries. Unable to push leisure fares higher, the company is combating the decline in domestic business travel, lower Latin American traffic and a surge in low-cost competition in San Juan.[/P]
[P]When AMR announced a staggering $924 million third-quarter loss last month, Chief Financial Officer Jeff Campbell told analysts the company would consider selling noncore assets, such as American Eagle.[/P]
[P]''Chairman [Don] Carty has said that everything is on the table,'' Bailey said. ``We're looking at all sorts of options. Nothing is being ruled out.''[/P]
[P]AMR paved the way for the sale of Executive on Oct. 1, transferring all of the turboprop aircraft flown out of Miami to Executive Airlines' Federal Aviation Administration operating certificate. Miami region employees were also transferred to Executive last month.[/P]
[P]Previously, Executive encompassed only the San Juan flights and employees.[/P]
[P]Rumors have swirled for months regarding potential buyers for Executive. They include Chatauqua Airlines, a regional carrier that provides service for American Connection; Caribbean Star Airlines, a small Antiguan carrier that expressed interest in the past; or the previous, San Juan-based owner of Executive, which sold the carrier to AMR.[/P]
[P]AMR could also take Executive Airlines public in an initial offering or sell the operation to a group of investors and managers.[/P]
[P]''All the majors are considering what they have that they can sell that can create liquidity and allow them to focus back on core operations,'' said Coral Gables aviation consultant Stuart Klaskin, partner in Klaskin, Kushner & Co. ``And these sorts of sales are a classic example of both.''[/P]
[P]Depending on the buyer, the Executive sale may be largely transparent to South Florida passengers, Klaskin said. However, it would mean that American Eagle's regional jets would not be placed here.[/P]
[P]Pilot members of the Air Line Pilots Association say they oppose the sale.[/P]
[P]''The sale of Executive would break the basic promise that American Eagle made to its pilots in 1997, when they agreed to combine all the carriers that make up American Eagle into one airline,'' said James Magee, spokesman for the American Eagle unit of the Air Line Pilots Association. The airline has 152 pilots in Miami and 260 in San Juan, said Ron Lovas, a spokesman for ALPA.[/P]
[P]Flight attendants and pilots also say they are concerned that a buyer might not have an interline agreement with American, which would affect the flying benefits that they enjoy today. The airline has about 125 flight attendants in Miami and 120 in San Juan, said Patricia Hoefener, former president for the American Eagle unit of the Association of Flight Attendants.[/P]
[P]American Eagle started service in 1984, with two carriers serving eight cities from Dallas/Fort Worth. Over the next several years, three other airlines were added, and two of the five merged.[/P]
[P]In 1997, the four surviving carriers -- Executive, Simmons, Flagship and Command -- were combined into American Eagle. However, Executive, because it was based in San Juan, retained its separate operating certificate.[/P]
[P]From Miami, American Eagle's destinations include Freeport, Nassau, George Town and Marsh Harbour, Bahamas, and Fort Myers, Jacksonville and Key West.[/P][/SPAN][!-- end body-content --][/SPAN][/TD][/TR][/TBODY][/TABLE]
[P] [/P]
[P]For story verification: [A href=http://www.miami.com/mld/miami/business/4451681.htm]http://www.miami.com/mld/miami/business/4451681.htm[/A][/P]
[BR]Sounds like a done deal too me. How long will it be before American Connection is bigger than American Eagle?[BR][BR][A href=http://biz.yahoo.com/prnews/021106/daw023_1.html]http://biz.yahoo.com/prnews/021106/daw023_1.html[/A][BR][BR]
BillLumbergh
Veteran
[P]I'm going to consolidate all posts here:[/P]
[P][A href=http://www.usaviation.com/idealbb/view.asp?topicID=1426&sessionID={2D7AA005-DD1B-4D50-AE87-A91089F1D642}][FONT color=#336699]Rumor: AMR to sell Eagle[/FONT][/A] [/P]
[P][A href=http://www.usaviation.com/idealbb/view.asp?topicID=1426&sessionID={2D7AA005-DD1B-4D50-AE87-A91089F1D642}][FONT color=#336699]Rumor: AMR to sell Eagle[/FONT][/A] [/P]
[blockquote]
----------------
On 11/6/2002 8:58:08 AM capeman wrote:
Sounds like a done deal too me. How long will it be before American Connection is bigger than American Eagle?
[A href="http://biz.yahoo.com/prnews/021106/daw023_1.html"]http://biz.yahoo.com/prnews/021106/daw023_1.html[/A]
----------------
[/blockquote]
I think the real question is, how long before it's bigger than AA?
----------------
On 11/6/2002 8:58:08 AM capeman wrote:
Sounds like a done deal too me. How long will it be before American Connection is bigger than American Eagle?
[A href="http://biz.yahoo.com/prnews/021106/daw023_1.html"]http://biz.yahoo.com/prnews/021106/daw023_1.html[/A]
----------------
[/blockquote]
I think the real question is, how long before it's bigger than AA?
- Status
