T-Bird76
2007-11-28, 04:10 PM
What looks to be a very Expressjet type of move American is planning on divesting itself of Eagle.
AP
AMR Plans to Divest American Eagle
Wednesday November 28, 2:19 pm ET
AMR Plans to Divest American Eagle Via Sale or Spin-Off in 2008, Supporting Street Speculation
FORT WORTH, Texas (AP) -- AMR Corp. said Wednesday it plans to divest its American Eagle regional carrier in a sale or spinoff next year, supporting Wall Street speculation that major airlines will sell assets to streamline their businesses and gain capital.
AMR said the divestiture will allow it to focus on its mainline American Airlines business while ensuring access to a cost-competitive regional carrier. It expects to enter a "mutually beneficial" air services agreement under which American Eagle will continue to operate flights for AMR.
American Eagle operates about 300 aircraft, with approximately 1,700 daily flights to more than 150 cities in North America and the Caribbean. In 2007, American Eagle expects to generate annual revenues of about $2.3 billion.
"We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure," AMR Chief Executive Gerald Arpey said in a statement.
In October, Chief Financial Officer Tom Horton listed several assets that the company was considering divestitures for in a conference call. The list included American Eagle, AMR's American Beacon Advisors investment arm, its maintenance and repair business and its AAdvantage frequent-flyer program, each of which have been valued at several billion dollars by analysts.
AMR shares rose $1.09, or 5.3 percent, to $21.65 in afternoon trading.
AP
AMR Plans to Divest American Eagle
Wednesday November 28, 2:19 pm ET
AMR Plans to Divest American Eagle Via Sale or Spin-Off in 2008, Supporting Street Speculation
FORT WORTH, Texas (AP) -- AMR Corp. said Wednesday it plans to divest its American Eagle regional carrier in a sale or spinoff next year, supporting Wall Street speculation that major airlines will sell assets to streamline their businesses and gain capital.
AMR said the divestiture will allow it to focus on its mainline American Airlines business while ensuring access to a cost-competitive regional carrier. It expects to enter a "mutually beneficial" air services agreement under which American Eagle will continue to operate flights for AMR.
American Eagle operates about 300 aircraft, with approximately 1,700 daily flights to more than 150 cities in North America and the Caribbean. In 2007, American Eagle expects to generate annual revenues of about $2.3 billion.
"We have worked hard over the years to build a regional airline that is fully capable of standing on its own and is well positioned to pursue growth opportunities outside of the AMR corporate structure," AMR Chief Executive Gerald Arpey said in a statement.
In October, Chief Financial Officer Tom Horton listed several assets that the company was considering divestitures for in a conference call. The list included American Eagle, AMR's American Beacon Advisors investment arm, its maintenance and repair business and its AAdvantage frequent-flyer program, each of which have been valued at several billion dollars by analysts.
AMR shares rose $1.09, or 5.3 percent, to $21.65 in afternoon trading.