The parent of American Airlines is one step closer to spinning off American Eagle as a separate company.
AMR Corp. said Thursday it had filed documents with the Securities and Exchange Commission that describe Eagle's financial situation and terms of the spin-off to AMR shareholders. AMR had been trying to sell Eagle.
Eagle operates shorter flights and connects passengers from secondary airports to American Airlines flights at hub airports. AMR thinks it can save money by putting that service up for bidding between Eagle and other regional airlines.
Eagle had revenue last year of $1.2 billion, a tiny part of AMR's total of $22.2 billion. AMR says Eagle would transfer jets and debt to the parent company.
Copyright AP - Associated Press
