AMR Seeks more int'l Routes for Eagle
03-30-2011 | 01:47 PM
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AMR Seeks more int'l Routes for Eagle
Very Interesting...
By Doug Cameron Of DOW JONES NEWSWIRES The parent of American Airlines is seeking additional international route rights for its Eagle commuter arm as it weighs whether to keep or divest the business.
AMR Corp. (AMR) has asked regulators to give American Eagle blanket rights to serve countries that have an open-skies deal with the U.S., a move that could allow the regional jet and turboprop operator to serve more cities in Central and South America.
American Eagle already has authority to fly from the U.S. to cities in Canada, Mexico and many parts of the Caribbean. The March 29 application to the U.S. transportation department for an "open skies certificate" is seen as a technicality, as the liberalized deals effectively allow airlines from signatories to fly to any point between the countries.
However, it could sweeten the appeal of Eagle after AMR last year said it may revive plans to spin off the regional arm, installing a senior executive to run the operation.
AMR shelved plans pushed by investors to explore separating Eagle in 2008, opting to sell its investment business and resisting pressure to spin-off or float its AAdvantage frequent-flyer unit.
The company named executive vice president marketing Dan Garton as chief executive of American Eagle, a unit where he formerly served as president.
American is the only one of the network majors to keep most of its regional flying in-house. Other airlines have opted to subcontract more flying, allowing them to secure more competitive deals.
By Doug Cameron Of DOW JONES NEWSWIRES The parent of American Airlines is seeking additional international route rights for its Eagle commuter arm as it weighs whether to keep or divest the business.
AMR Corp. (AMR) has asked regulators to give American Eagle blanket rights to serve countries that have an open-skies deal with the U.S., a move that could allow the regional jet and turboprop operator to serve more cities in Central and South America.
American Eagle already has authority to fly from the U.S. to cities in Canada, Mexico and many parts of the Caribbean. The March 29 application to the U.S. transportation department for an "open skies certificate" is seen as a technicality, as the liberalized deals effectively allow airlines from signatories to fly to any point between the countries.
However, it could sweeten the appeal of Eagle after AMR last year said it may revive plans to spin off the regional arm, installing a senior executive to run the operation.
AMR shelved plans pushed by investors to explore separating Eagle in 2008, opting to sell its investment business and resisting pressure to spin-off or float its AAdvantage frequent-flyer unit.
The company named executive vice president marketing Dan Garton as chief executive of American Eagle, a unit where he formerly served as president.
American is the only one of the network majors to keep most of its regional flying in-house. Other airlines have opted to subcontract more flying, allowing them to secure more competitive deals.
03-31-2011 | 03:58 PM
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That was probably the best way to describe it! Similar to the way Continental pumped up COEX with a 10% profit margin before it was spun off as XJT. Its the whole "lipstick on a pig" thing.
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