It is all about keeping the costs low for American Airlines, and American Eagle spinoff and renegotiation of its labor contracts fit that bill.
AMR, parent of American Airlines, may revive plans to spin off its American Eagle regional airline after emerging from bankruptcy, according to its CEO Dan Garton. It shelved its effort to separate Eagle after filing for Ch 11 in November. No decision will be made until after the conclusion of these proceedings.
The regional unit supplies most of American’s passenger feed to hub airports from smaller cities. Spinning off Eagle would allow American to try to find cheaper options for those flights while allowing the commuter airline to grow through agreements to fly under contract for other carriers.
Star-Telegram: CEO Garton: “We are going to need, sooner or later, to find a new title for the company because we don’t want to have the same title that American Airlines uses as a brand for its feed…We are working through a more disciplined process now with some professionals to come up with a name which I expect we will be announcing toward the end of this year or early next year.”
The Daily Newsletter
Our daily coverage of the global travel industry. Written by editors and analysts from across Skift’s brands.
Have a confidential tip for Skift? Get in touch
Tags: american airlines