Posted on: 20 July 2011 by Ross McSweeny
AMR Corporation says it intends to move forward with the divestiture of its subsidiary AMR Eagle Holding Corporation, parent company of American Eagle Airlines.
AMR currently expects the divestiture to take the form of a spin-off of Eagle stock to the shareholders of AMR.
"We believe that a divestiture of Eagle would be in the best interests of AMR and Eagle, as well as our shareholders, customers and employees," explained AMR chairman and CEO Gerard Arpey. "Strategically for AMR, it would be beneficial, as we could, over time, diversify our regional feed with additional regional airlines to ensure we have access to the most competitive rates and service. A divestiture could provide Eagle an opportunity to vie for business of other mainline carriers and allow the carrier to grow. I am proud of the accomplishments of American and Eagle as a combined group of companies under AMR for the past 26 years, and I look forward to their future, independent successes."
"For everyone at Eagle, our highest priority will be to continue operating safely and reliably for all of our customers – and earning American’s business every day," remarked Dan Garton, president and CEO of AMR Eagle and American Eagle Airlines. "We are excited about the opportunities for growth that would be available to us as an independent carrier. We’re eager to take on those new challenges."
As part of the process of preparing for a potential spin-off of Eagle, in August AMR Eagle Holding Corporation expects to file a Registration Statement on Form 10 with the Securities and Exchange Commission related to the intended divestiture. The Registration Statement on Form 10 will describe the divestiture and will contain important information about Eagle, including its historical consolidated financial statements.
No specific time frame has been announced for the divestiture.