AMR Corporation, parent of American Airlines, has indicated that it may spin off its regional subsidiary, American Eagle, as an independent airline with a nine-year contract to fly for American.
In a regulatory filing, AMR has stated that this proposal would allow American Eagle to increase business and compete with other airlines by winning competitive rates for regional flying and allow American Eagle to increase its business by competing for contracts with other airlines.
No date for the suggested spin off has been set although a plan submitted to the Securities and Exchange Commission detailing the distribution of 100% of the outstanding shares of American Eagle to shareholders, could take up to three months to review. AMR also mooted an outright sale of the regional airline.