Category Archives: American Eagle

SkyWest, Inc. reports lower fourth quarter net profit of $8.6 million and a higher net profit of $59 million for 2013

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) reported net income of $8.6 million, or $0.17 per diluted share, for the quarter ended December 31, 2013, compared to net income of $13.9 million, or $0.27 per diluted share, for the same period last year.

SkyWest also reported net income of $59.0 million, or $1.12 per diluted share, for the twelve months ended December 31, 2013, compared to $51.2 million, or $0.99 per diluted share, for the same period last year.

Quarter Summary

For each of the quarters ended March, June and September of 2013, SkyWest reported improved financial results, on a year-over-year basis, in achieving increases in its fully-diluted earnings per share. However, SkyWest experienced a decline in its financial results for the quarter ended December 31, 2013 compared to its financial results for the quarter ended December 31, 2012. During the quarter ended December 31, 2013, compared to the quarter ended December 31, 2012, SkyWest experienced increased crew training costs as a result of new regulations regarding pilots (FAR 117) that became effective January 4, 2014 of approximately $3.0 million pretax. SkyWest also experienced increased maintenance costs of approximately $5.0 million, pretax, due primarily to performing additional C-checks related to used aircraft that were added to SkyWest’s fleet during 2013. Additionally during the quarter ended December 31, 2013, SkyWest incurred approximately $3.0 million, pretax, of costs associated with advanced pilot training and efforts to become certified to operate the new Embraer 175 regional jets scheduled for deliveries beginning in March 2014.

For the quarter ended December 31, 2013, SkyWest generated increased operating revenues (net of fuel, certain engine overhaul, landing fee and station pass-through revenues under SkyWest’s contracts with its major partners), of approximately $23.0 million, or 3.7%, compared to the quarter ended December 31, 2012, primarily due to additional block hour production of 2.8% and scheduled rate escalations. The increased operating revenues were offset by increased costs in several areas that resulted in a reduced amount of operating and pre-tax income for the quarter ended December 31, 2013 compared to the quarter ended December 31, 2012.

Following are selected statistics and information from the quarter ended December 31, 2013, compared to the quarter ended December 31, 2012:

Pre-tax income declined to $15.1 million, compared to $25.6 million
Fully-diluted EPS declined to $0.17, compared to $0.27
Increased block hour production 2.8% to 584,594 block hours, compared to 568,808 block hours
Increased operating revenues by approximately $23.0 million (net of fuel, certain engine overhaul, landing fees and station pass-through revenues) primarily related to rate escalations under SkyWest’s agreements with its major partners and increased block hour production
Increased total aircraft fleet to 757 aircraft as of December 31, 2013, compared to 744 aircraft as ofDecember 31, 2012

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO, said, “The decrease in our earnings in the fourth quarter is primarily due to advance preparations for the implementation of FAR 117, the new flight and duty time regulations, and aging maintenance costs on the 50-seat aircraft. We also invested in our future by beginning certification work on the Embraer 175 aircraft that are scheduled for delivery beginning in the first quarter of 2014.”

Financial and Operating Results

Operating revenues totaled $804.4 million for the quarter ended December 31, 2013, compared to $810.7 million for the same period last year or a decrease of $6.3 million. The decrease was due primarily to the reduction of approximately $29.2 million in fuel expenses, certain engine overhaul amounts, landing fees and station costs which were directly reimbursed by SkyWest’s major partners and recorded as operating revenues. However, this reduction was mostly offset by recording $23.0 million in additional operating revenues, primarily resulting from rate escalations under SkyWest’s agreements with its major partners and a 2.8% increase in total block hours for the quarter ended December 31, 2013, compared to the quarter ended December 31, 2012.

Total airline expenses (consisting of total operating and interest expenses) increased $4.0 million, or 0.5%, during the quarter ended December 31, 2013, compared to the same period in 2012. However, after deducting pass-through costs for fuel, certain engine overhaul expenses landing fees and station costs from total operating cost and interest expenses, the remaining total airline expenses increased $33.4 million. Management estimates that approximately $16.9 million of the increase was due primarily to the 2.8% increase in block hour production and approximately $16.4 million was primarily due to additional maintenance costs, cost increases resulting from new pilot regulations (FAR 117) and costs incurred from certifying a new E175 aircraft type.

Under certain of its agreements with its major partners, SkyWest recognizes revenue at fixed hourly rates for mature engine maintenance on regional jet engines and recognizes engine maintenance expense on its CRJ200 regional jet engines on an as-incurred basis as maintenance expense. During the quarter ended December 31, 2013, CRJ200 engine expense under these agreements decreased $1.0 million to$9.6 million, compared to $10.6 million for the quarter ended December 31, 2012, primarily as a result of decreased engine overhaul expense due to the timing of scheduled engine maintenance events. SkyWest was reimbursed approximately $12.7 million and $10.3 million for engine overhaul expense, under its agreements with its major partners, during the quarters ended December 31, 2013 and 2012, respectively.

Liquidity

At December 31, 2013, SkyWest had $670.1 million in cash and marketable securities, compared to$709.4 million as of December 31, 2012. Cash and marketable securities decreased $39.3 million during the quarter ended December 31, 2013 compared to the balance as of December 31, 2012, due primarily to SkyWest’s payment of $40.0 million (total amount required under agreement) related to deposits on its new order for E175 regional jet aircraft. SkyWest’s long-term debt was $1.29 billion as of December 31, 2013, compared to $1.47 billion as of December 31, 2012. The decrease in long-term debt for the twelve-months ended December 31, 2013 was due primarily to SkyWest’s payment of normal recurring debt obligations. SkyWest has significant long-term lease obligations that are recorded as operating leases and are not reflected as liabilities on SkyWest’s consolidated balance sheets. At a 5.8% discount rate, the present value of these lease obligations was approximately $1.5 billion as of December 31, 2013.

Business Developments

On May 21, 2013, SkyWest announced it had entered into a Capacity Purchase Agreement (CPA) with United Airlines, Inc. to operate 40 new Embraer 175 dual-class regional jet aircraft. The CPA is for 12 years and the new aircraft will be operated by SkyWest’s wholly-owned subsidiary, SkyWest Airlines, Inc. (St. George). Deliveries for these aircraft are scheduled to begin in March 2014 and continue through July 2015.

Additionally, on May 21, 2013 SkyWest announced it reached an agreement with Embraer S.A. for the purchase of 100 new E175 dual-class regional jet aircraft, 40 of which are considered firm orders and the remaining 60 aircraft remain conditional upon SkyWest entering into capacity purchase agreements with other major airlines. SkyWest intends to place the 40 new E175 aircraft into service under the terms of the United CPA discussed above.

On June 17, 2013, SkyWest and Embraer jointly announced an aircraft purchase agreement covering 100 E175-E2 dual-class regional jet aircraft and an option to purchase an additional 100 of the same aircraft. Deliveries for these E2 aircraft are tentatively planned to start in 2020.

During 2012, SkyWest announced the award of 34 additional dual-class aircraft and the removal of 66 CRJ200 aircraft under its Delta Connection Agreements with Delta Airlines, Inc. (Atlanta). As of May 2013, all 34 of these additional dual-class aircraft had been delivered. As of December 31, 2013 SkyWest had removed 33 (22 placed in contract with another major partner and 11 removed from SkyWest’s fleet) of the 66 CRJ200 aircraft from service and currently anticipates removing another 29 CRJ200 aircraft during 2014. SkyWest believes the remaining four CRJ200 aircraft will be removed from its fleet in early 2015. Additionally, 41 of the 66 CRJ200 aircraft have been financed by Delta and will be returned to Delta with no further obligation by SkyWest.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Even though SkyWest is shrinking its Bombardier CRJ200 fleet, it was fortunate to place some of the grounded CRJ200s with American Airlines as an American Eagle carrier. SkyWest’s Bombardier CRJ200 (CL-600-2B19) N864AS (msn 7502) departs the runway at Los Angeles International Airport.

American Eagle-SkyWest:

American Eagle Airlines to become Envoy, will continue to operate under the American Eagle brand

American Eagle Airlines, Inc. (American Eagle Airlines 2nd) (Dallas/Fort Worth), a wholly owned subsidiary of American Airlines Group Inc., announced today that the company will be changing its name to Envoy in spring 2014. This change is being made to give the company its own distinct identity and eliminate the confusion between the company’s current name and American Eagle, the regional flying brand of American Airlines, Inc. With the formation of American Airlines Group, the 10 carriers currently providing regional service for the legacy American and US Airways networks will all eventually fly under the American Eagle brand.

American Eagle Airlines has more than 14,000 employees and a growing portfolio of business outside of its flying operations, including a robust aviation ground handling operation. Envoy was chosen as the company’s new name after an extensive selection and vetting process that included looking at more than 1,000 names and considering feedback from American Eagle Airlines employees. The name was chosen because Envoy is reflective of what the company does for the airlines it works with – serving as their ambassador and a representative to their customers.

Customers traveling on both American Eagle Airlines and American Eagle-branded regional air service will not experience any changes to their travel experience as a result of this name change. Ticket counters and gates will continue to be branded American and American Eagle and Envoy’s aircraft will continue to operate using the American Eagle brand and livery. Once the necessary regulatory processes and approvals are complete, “Operated by Envoy” will be added to the company’s aircraft paint scheme and noted on customers’ tickets much like it is for American’s other regional carrier partners currently flying using the American Eagle brand.

American Eagle-Envoy:

American Eagle to operate 60 Embraer 175 aircraft

American Eagle Airlines (2nd) (subsidiary of American Airlines Group) (Dallas/Fort Worth) and its pilots, represented by the Air Line Pilots Association (ALPA), have reached an agreement in principle on a new contract. According to an ALPA letter sent to its members, the union gave up contractual concessions in return for a guarantee that it will operate 60 new Embraer 175 aircraft with options for 90 additional aircraft. The pilots will also have increased flow through opportunities to American Airlines (currently restricted at 30 per month). In exchange, the Eagle pay rates will be frozen until 2018. Starting on January 1, 2018 pilots will receive a 1 percent annual increase unless the pilot has declined the flow through to American.

In other news, with this announcement, the company is also expected to unveil a new company name very shortly as other carriers are now flying under the American Eagle brand.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. American Eagle currently operates 47 Bombardier CRJ700 (CL-600-2C10) aircraft for American (+ Embraer ERJ 140s and ERJ 145s which will be retired by 2017). Bombardier CRJ700 N535EA (msn 10313) climbs away from the runway at Los Angeles International Airport.

American Eagle:

What will happen to American Eagle Airlines?

American Eagle Airlines (2nd) (Dallas/Fort Worth) is a subsidiary of the new American Airlines Group (Dallas/Fort Worth). In a lot of ways the regional jet carrier is now the step-child of the Group and fighting for its future. The current American Eagle (not the brand that several carriers are now flying under) was created on May 15, 1998 as a consolidation of four AMR-owned regional carriers, namely Simmons Airlines, Executive Airlines (3rd), Flagship Airlines and Wings West Airlines. The pilots of the carriers signed a single contract in August 1998 creating the large feeder airline for parent American Airlines. American Eagle used the AOC of Simmons Airlines. The MQ code of Simmons has been retained.

American Eagle has had an important role in the history of American Airlines. Today it is fighting for new contracts and its life.

The Air Line Pilots Association (ALPA) represents the present-day pilots of American Eagle Airlines. The new management team of the American Airlines Group are demanding a new (lower benefits) contract with the pilots to bring their contract in line with the new American Group regional model, i.e. PSA Airlines, which will be flying a new batch of regional aircraft for American as a new American Eagle carrier.

The pilots of American Eagle Airlines are now facing a difficult decision, accept the new contract which cuts benefits or gradually see its fleet dissolve and be transferred to the other lower cost American Eagle units like PSA Airlines (Dayton).

Will the original American Eagle follow the same path of Delta Air Lines’ Comair and go out of business?

Terry Maxon of the Dallas News explores this interesting and important question in his excellent column. The column includes union messages on the subject.

Read the full story: CLICK HERE

American Eagle Airlines will soon announce a new name to distinguish itself from the other carriers operating under the American Eagle brand.

Copyright Photo: Tony Storck/AirlinersGallery.com. American Eagle Airlines’ (2nd) Embraer ERJ 145LR (EMB-145LR) N928AE (msn 14500911) lands at Baltimore/Washington.

American Eagle:

American’s new CEO Doug Parker puts the AA livery to an employee vote, there will be a TWA retrojet

American Airlines‘ (Dallas/Fort Worth) new 2013 livery was approved by out-going CEO Tom Horton as we have previously reported. Incoming CEO (and US Airways boss) Doug Parker is now putting the question of keeping this design or adopting a more traditional AA tail to an employee vote (all American and US Airways employees). One question is certain, either way, the fuselage will be painted because of the Airbus fleet and the newer Boeing aircraft like the 787.

Nearly 620 US Airways and US Airways Express aircraft now need to be repainted, let alone the remaining AA aircraft.There are now over 200 AA aircraft already repainted in the 2013 Horton design which features the large American flag on the tail. The new flight symbol logo (above) is everywhere now. However many employees miss the traditional AA on the tail (see below).

Doug has sent this message below to his expanded group of employees and is asking them to vote on two choices: silver paint with the new American flag on the tail or silver paint with the traditional AA on tail. Which do you like best? Please see our unofficial poll below for the readers of WAN (yes, AA-US employees can vote too in our poll).

Doug has also announced there will a TWA legacy retrojet (which color scheme?) to honor the proud employees of that once great airline. All of the heritage US Airways aircraft (including Allegheny, America West, Piedmont and PSA) will be retained in the new American along with one US Airways 2005 liveried aircraft and an American 1968 liveried aircraft. We have also included a TWA legacy poll below with all of the TWA color schemes and the years introduced. Which TWA design would you like to see?

Here is Doug’s full message to the employees:

American Livery Poll: Unless you are an AA-US employee, your opinion will not be heard. However you can give your opinion here. Vote for your favorite design.

TWA RetroJet Livery Poll:

American Airlines:

TWA:

US Airways:

TWA main liveries over the years (there were other minor variations but this is the main ones with the most recent at the top going back in time):

TWA 1995 (the last color scheme for TWA and the most stylistic):

TWA 1979 (included the tapered two traditional red stripes and the solid red TRANS WORLD fuselage titles:

TWA 1974 (basically the same as the later 1980 updated look, except with the harder-to-read red outline fuselage titles):

TWA 1962 (the classic early jet age “red arrow” and “twin globes” scheme, aircraft were called “StarStream …) (prior to this, early jet aircraft had a simple red TWA on the tail):

TWA 1952 (basically the 1945 with a white top, white was added to keep the aircraft cooler in flight, here is the the classic red and white “twin stripes” color scheme of the prop era):

TWA 1945: (after World War II aircraft wore this simple bare metal design with twin red stripes and red TWA titles):

TWA 1938 (“The Lindbergh Line” was pretty basic – only two tail stripes and red titles with a simple logo on a bare metal fuselage):

American orders 30 Bombardier CRJ900s to be operated by PSA Airlines and 60 Embraer ERJ 175s

American Airlines (Dallas/Fort Worth), a wholly owned subsidiary of American Airlines Group Inc., announced today that it has signed agreements with Bombardier Inc. and Embraer S.A. to purchase 90 new 76-seat regional jets. Consistent with American’s Plan of Reorganization and Merger Agreement, these aircraft will provide much improved economics for the airline as they will replace smaller, less efficient 50-seat regional aircraft scheduled for retirement.

American has firm orders for 30 Bombardier CRJ900 NextGen aircraft, with options for up to 40 more. The CRJ900s will have 12 First Class, 32 Main Cabin Extra and 32 Main Cabin seats, and the firm order of CRJ900 aircraft will be operated on behalf of American by PSA Airlines, Inc. (2nd) (Dayton), a wholly owned subsidiary of US Airways. American expects to begin taking delivery of the CRJ900s in the second quarter of 2014.

American also has firm orders for 60 Embraer ERJ 175 type aircraft with options for up to 90 more. They will feature 12 First Class, 20 Main Cabin Extra and 44 Main Cabin seats, and American expects to begin taking delivery in the first quarter of 2015. The company will determine which regional carrier will fly the E175s at a later date. Both the CRJ900 and the E175 will fly in the American Eagle livery.

Both the CRJ900 and the E175 are powered by General Electric CF34-8 engines. “GE Aviation has enjoyed a strong relationship with American Airlines and US Airways. We are thrilled to be part of the fleet renewal program underway following the merger,” said Allen Paxson, general manager of the Regional Engines and Services at GE Aviation.

The pilots of PSA Airlines, represented by ALPA, issued this statement on this news:

“The pilots of PSA Airlines, a wholly owned subsidiary of US Airways, welcome the news of American Airlines’ purchase of 30 CRJ900s as an important and exciting step forward for PSA. This firm order fulfills the pledge made to us in a letter of commitment our pilots ratified in September.

“When PSA pilots voted on our new contract in March, and on subsequent agreements, we had to make some difficult decisions. As a result, we preserved core provisions in our contract and improved pilots’ job security here at PSA and career progression to our mainline partner. Today’s announcement of a new aircraft order, coupled with our first scheduled seniority-based interviews at US Airways, prove that our tough decisions have borne fruit.

“While we acknowledge that the planned delivery schedule of these new aircraft is ambitious, the pilots of PSA stand ready to work with our managements to protect and improve our airline and our futures as an integral part of the new American Airlines.”

Copyright Photo: TMK Photography/AirlinersGallery.com. Republic Airlines (2nd) currently is the only Embraer ERJ 175 operator for American Airlines. ERJ 170-200LR (ERJ 175) N401YX (msn 17000363) taxies at Toronto (Pearson).

American Airlines:

US Airways Express-PSA Airlines:

American Eagle-Republic:

American Airlines and American Eagle cancel nearly 500 flights today at DFW

American Airlines (Dallas/Fort Worth) issued this short statement concerning its largest hub at Dallas-Fort Worth International Airport (DFW) due to a winter ice storm:

Because of the anticipated winter weather American Airlines and American Eagle have proactively canceled nearly 500 flights in and out of the DFW Airport through 11 a.m. central time Friday, December 6.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. American Airlines’ Boeing 777-223 ER N790AN (msn 30251) arrives at Los Angeles International Airport.

American Airlines:

American Eagle:

Bottom Copyright Photo: Brian McDonough/AirlinersGallery.com. American Eagle Airlines’ (2nd) Embraer ERJ 145LR (EMB-145LR) N928AE (msn 14500911) lands at Baltimore/Washington.

American and US Airways settle with the Department of Justice giving up 52 DCA slot pairs and 17 LGA slot pairs, paving the way towards a merger

AMR Corporation (Dallas/Fort Worth), the parent company of American Airlines, Inc., (Dallas/Fort Worth) and US Airways Group, Inc. (US Airways) (Phoenix) today announced that the airlines have settled the litigation brought by the U.S. Department of Justice (DOJ), the States of Arizona, Florida, Michigan and Tennessee, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia challenging the merger of AMR and US Airways. The companies also announced an agreement with the U.S. Department of Transportation (DOT) related to small community service from Washington Reagan National Airport (DCA).

Tom Horton, chairman, president and CEO of AMR, and incoming chairman of the board of the combined company, said, “This is an important day for our customers, our people and our financial stakeholders. This agreement allows us to take the final steps in creating the new American Airlines. With a renewed spirit, we are about to create the world’s leading airline that will offer, along with our oneworld® partners, a comprehensive global network and service by the best people in the business. There is much more work ahead of us but we’re energized by the challenge and look forward to competing vigorously in the ever-changing global marketplace.”

Doug Parker, chairman and CEO of US Airways, and incoming CEO of the combined airline, said, “This is very good news and we are grateful to all who have made it happen. In particular, we are thankful to our employees, who throughout this process continued to believe in a better future as one airline and who voiced their support passionately and consistently. We also want to thank the elected officials in the states and communities we serve, the business leaders in our hub cities, and the thousands of customers who endorsed and supported this effort. Thank you as well to the U.S. Department of Justice, the state attorneys general and the U.S. Department of Transportation. We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together.”

Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as certain gates and related facilities to support service at those airports. The airlines also will divest two gates and related support facilities at each of Boston Logan International Airport, Chicago O’Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. The divestitures will occur through a DOJ approved process following the completion of the merger. Despite the divestitures, the new American is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February.

After completion of the required divestitures, the combined company expects to operate 44 fewer daily departures at DCA and 12 fewer daily departures at LGA than the approximately 290 daily DCA departures and 175 daily LGA departures that American and US Airways operate today. The divestitures required by the settlement are not expected to impact total employment at the new American.

To ensure much of the service currently operated by the carriers to small- and medium-sized markets from DCA is maintained, the new American has agreed with the DOT to use all of its DCA commuter slot pairs for service to these communities. The new American intends to announce the service changes that will result from the divestitures in advance of the sale of the DCA and LGA slots, so that the airlines acquiring those slots have the opportunity to maintain service to those impacted communities.

In the settlement agreement with the state Attorneys General, the new American has agreed to maintain its hubs in Charlotte, New York (Kennedy), Los Angeles, Miami, Chicago (O’Hare), Philadelphia, and Phoenix consistent with historical operations for a period of three years. In addition, with limited exceptions, for a period of five years, the new American will continue to provide daily scheduled service from one or more of its hubs to each plaintiff state airport that has scheduled daily service from either American or US Airways. A previous settlement agreement with the state of Texas will be amended to make it consistent with today’s settlement.

Completion of the merger remains subject to the approval of the settlements by the U.S. Bankruptcy Court, and certain other conditions. The companies now expect to complete the merger in December 2013.

Copyright Photo: Andi Hiltl/AirlinersGallery.com. American Airlines’ Boeing 767-323 ER N376AN (msn 25445) touches down in Zurich.

American Airlines:

US Airways:

American Eagle to start daily New York LaGuardia-Little Rock service on November 26

American Eagle Airlines (Dallas/Fort Worth) will start daily nonstop New York (LaGuardia)-Little Rock, Arkansas service on November 26. The new route will be operated with Bombardier CRJ700 regional jets per Airline Route.

Update: According to Airline Route this route has now been pulled from the American schedules on Amadeus.

American Eagle is still considering a name change due to several airlines now operating under the American Eagle brand.

Copyright Photo: TMK Photography/AirlinersGallery.com. Bombardier CRJ700 (CL-600-2C10) N505AE (msn 10053) taxies at Toronto (Pearson).

Previous News Reports:

American Eagle Aircraft Slide Show:

The next move for AMR and American Airlines

AMR Corporation (American Airlines) (Dallas/Fort Worth) and US Airways (Phoenix) in a show of unity, vowed yesterday to fight the Department of Justice’s (DOJ) lawsuit in court (along with six states and the District of Colombia). Three high-powered attorneys have been hired to fight the lawsuit. The two airlines will try to argue in court that their merger will promote competition, especially against Delta Air Lines, United Airlines and Southwest Airlines.

However the real measure being used by the DOJ and will probably be the central theme in the court, will another merger lead to lower ticket prices? With the recent Delta-Northwest, United-Continental and Southwest-AirTran mergers, ticket prices have been raised steadily (probably due more to fuel costs) along with an increasing long list of add-on charges. Airline profits are at its highest. The DOJ is using American’s and US Airways’ own pre-airline merger reports when they were arguing for a merger which states an AA-US merger would lead to higher yields permitting the lower ticket prices to be dropped on many routes where they compete adding to the bottom line for the merged company. AA-US also have a large share of the routes and traffic from slot-controlled Washington Reagan National Airport. Very few of those routes have any meaningful competition. DCA routes have some of the highest yields in the country.

At any rate the lawsuit will delay the merger decision, probably now to 2014.

Read the full report from Reuters: CLICK HERE

However for bankrupt AMR Corporation and American Airlines and its shareholders, the rejection could send its bankruptcy reorganization back to where it all started with a key question:

Can the deal be restructured again to meet the DOJ’s antitrust objections (especially concerning Washington’s Reagan National Airport) and keep some value for the creditors and shareholders? Without US Airways in the equation, a new reorganization would probably shift the company’s equity to the current creditors. The existing shareholders could get nothing in any new reorganization making it harder to “sell”.

In addition what happens to CEO Tom Horton and his nearly $20 million severance package?

Nick Brown examines the options for AMR in this article as it tries to adjust to a newer reality: CLICK HERE

Copyright Photo: TMK Photography/AirlinersGallery.com. The new 2013 livery of American is now likely to become the livery of a new American with or without US Airways as more aircraft are repainted. There is a tipping point (probably already achieved) where it becomes unfeasible to go to another look. US Airways’ CEO Doug Parker, if he becomes the CEO of the new American, may be stuck with current CEO Tom Horton’s design going forward. The controversial livery is the least of Doug’s problems right now. Boeing 737-823 N965AN (msn 29544) poses for the camera under perfect light at Toronto (Pearson).

American Airlines: