American Eagle’s fate will be decided after dust settles on AA-US merger

AMR Corp.’s $11 billion merger with US Airways Group Inc. will prompt a review of regional airline American Eagle’s fate, with a spinoff possible as soon as this year, the unit’s CEO Dan Garton said.

American Eagle, which ferries travelers to and from hub airports and provides more than 90 percent of American Airlines’ passenger feed, may also get larger regional jets that are more profitable to fly after the review concludes, Garton said. Even if it isn’t spun off, the carrier could benefit by transporting more passengers into a larger network of hubs under the combined American-US Airways, he said.

The regional carrier’s future hasn’t been decided, US Airways CEO Doug Parker, who will lead the post-merger company, said today.

American Eagle