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AMR Says It'll Sell or Spin Off American Airlines

By Bill Zeeble, KERA reporter

Fort Worth, TX – Bill Zeeble, KERA reporter:
The company says that after an ongoing review to increase value, divestiture of American Eagle would benefit AMR, shareholders, American, American Eagle, and employees. Tim Smith, with AMR, said Eagle would still provide the same service to customers, moving clients on small jets from small cities to larger cities with big jets. But now, he says Eagle could compete and with other small jet companies and possibly grow. He added that as a subsidiary of American, Eagle can't do that now.

Tim Smith: Other airlines are reluctant to do business with American Eagle which is so closely tied to AMR and American Airlines.

Zeeble: At the same time however, American Airlines could then seek out the lowest cost provider for small jet service where it now exclusively uses Eagle, its subsidiary. American's stock price rose on the news. Bill Zeeble, KERA news.