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American Airlines to Spin-Off American Eagle
Published by AirlineFanatic | Filed under airline strategy
Breaking News: American Airlines announced this morning that they will divest themselves (investment speak for sell) their American Eagleregional subsidiary next year. I think this is probably good news for them. American Eagle has lots of old aircraft and probably runs a lot of American’s shortest and biggest money losing routes. Cutting them out will definitely improve the financials at AMR.
Shareholders were pleased with the announcement - American Airlines stock (AMR) is currently up about 8% on the news.
[Via PlaneBuzz]
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November 28th, 2007
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