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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.”