AP News

AMR seen likely to try again to spin off Eagle


DALLAS (AP) — The CEO of American Eagle says he expects that the regional affiliate of American Airlines will still be sold or spun off as a separate company after American emerges from bankruptcy protection.

American's parent, AMR Corp., twice tried to unload Eagle, then shelved the idea when it filed for Chapter 11 protection last November.

Eagle CEO Daniel Garton said in an interview with The Associated Press this week that AMR will revisit the issue and that the conclusion will likely be the same: that Eagle will be better off as a separate company.

American believes it can save money by getting regional airlines to bid for its connecting-flight business rather than keeping the work within the AMR family at Eagle.


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