AMR Corp., the parent company of American Airlines, has officially decided to move forward with the divestiture of American Eagle, American Airlines' regional carrier, it announced last week.
Although it currently envisions the divestiture as a spin-off of American Eagle into its own independent entity, AMR said it remains open to other options — including a sale.
"We believe that a divestiture of Eagle would be in the best interests of AMR and Eagle, as well as our shareholders, customers and employees," said AMR Chairman and CEO Gerard Arpey. "Strategically for AMR, it would be beneficial, as we could, over time, diversify our regional feed with additional regional airlines to ensure we have access to the most competitive rates and service. A divestiture could provide Eagle an opportunity to vie for business of other mainline carriers and allow the carrier to grow. I am proud of the accomplishments of American and Eagle as a combined group of companies under AMR for the past 26 years, and I look forward to their future, independent successes."
As part of the process of preparing for a potential spin-off of American Eagle, in August AMR Eagle Holding Corporation expects to file a Registration Statement on Form 10 with the Securities and Exchange Commission related to the intended divestiture. The Registration Statement on Form 10 will describe the divestiture and will contain important information about Eagle, including its historical consolidated financial statements.
"For everyone here at Eagle, our highest priority will be to continue operating safely and reliably for all of our customers — and earning American's business every day," said American Eagle President and CEO Dan Garton. "We are excited about today's announcement and the opportunities for growth that would be available to us as an independent carrier. We're eager to take on those new challenges."