AMR Corp Reportedly Eyeing Spinoff Of The Regional Airline

American Eagle may find its self as a stand-alone regional airline after AMR Corp. emerges from bankruptcy, and the carrier's CEO says that's just fine with him.

"That would certainly be my hope and my anticipation," American Eagle CEO Dan Garton told Bloomberg News in a telephone interview.

But the final decision won't be known until the bankruptcy proceedings work their way through the courts. AMR Corp CEO Tom Horton has long said that he would prefer that American emerge as a stand-alone airline, but there is still the possibility of a merger with Tempe, AZ,-based US Airways Group. Garton would not comment on that scenario, citing a confidentiality agreement.

American Eagle has been able to reach labor agreements with its pilots, flight attendants, and baggage handlers. There is a tentative agreement with the airline's mechanics. American, on the other hand, is in a protracted labor dispute with its pilots.

AMRs board had decided to separate the regional carrier in 2011 after more than a year of study, but put those plans on the shelf when the company filed for bankruptcy. Separating the feeder airline from the main carrier would allow American to look for lower-cost options for bringing passengers from smaller airports to its hubs. The spinoff would also likely allow the regional carrier to expand as a commuter airline.

FMI: www.aa.com