American’s parent plans to sell American Eagle

American Airlines parent AMR Corp. has announced plans to divest its wholly-owned regional carrier subsidiary, American Eagle. AMR said the decision was made as part of “an ongoing strategic value review process.” The divestiture will allow the company to focus on its mainline business, AMR said, and will “better position American Eagle to compete for new customers and growth opportunities in the future.” A change in ownership will not preclude Eagle from continuing to provide regional services for American, however. “Once the two airlines are separated, it is expected that they will continue to operate pursuant to a mutually beneficial air services agreement,” AMR said – but “on terms that reflect today’s market for those services.” American Eagle has some 300 aircraft and operates 1,700 flights a day to 150 cities. Its 2007 revenues are expected to reach $2.3 billion, AMR said. The sell-off would include both American Eagle Airlines, Inc. and its affiliate Executive Airlines, Inc., which operates under the Eagle name in the Bahamas and Caribbean from Miami and San Juan.