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American Eagle to Break from AMRNovember 29, 2007 By: Travel Agent Central Contributor Travel Agent
AMR Corporation, the parent company of American Airlines, next year will shed American Eagle, its wholly owned regional carrier. Once the two airlines are separated, AMR said it expects they will continue to operate under a "mutually beneficial air services agreement." The separation is said to allow American to focus on its mainline business.
Currently, AMR is weighing the options for divesting American Eagle in 2008, which include a spin-off or sale. "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," AMR Chairman and CEO Gerard Arpey said in a statement. "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." Visit www.aa.com. (JM)