Executive sale...

[fr8doggydog]

Yahoo just reported the AMR sale of Executive. Enough said...

 

[Beechnut]

Associated Press
AMR to Sell Executive Airlines
Wednesday November 6, 10:02 am ET
American Airlines' Parent Company AMR Announces Plans to Sell Regional Carrier Executive Airlines


FORT WORTH, Texas (AP) -- The parent company of American Airlines, struggling to cut costs after large losses, announced Wednesday that it plans to sell Executive Airlines, its Caribbean regional carrier.
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Fort Worth-based AMR Corp. said in a statement Wednesday that its American Eagle regional subsidiary has signed a letter of intent to sell the carrier to San Juan, Puerto Rico, hotelier Joaquin Bolivar.

A price was not disclosed. Executive Airlines president Gary Ellmer will retain his position after the sale, according to the statement.

The sale will keep American Airlines in compliance with its contract with its pilots union, according to the statement. The contract with the Allied Pilots Association limits the amount of flying that can be done on American Airlines flights.

The deal with Bolivar will include a marketing partnership under which Executive will continue to feed passengers to American, but not under American's name or codes, the statement said. The operations will use the AmericanConnection brand AMR licenses to independent regionals that feed American, the statement said.

In early trading on the New York Stock Exchange, AMR shares were up 4.8 percent, or 28 cents a share, at $6.15.

AMR has said previously it wants to cut $4 billion from its annual costs after losing $924 million in the third quarter.

Executive, which flies regional passengers for American Eagle out of Miami and San Juan, represented about 12 percent of American Eagle's passenger traffic and 13 percent of its capacity in October.

As early as February, AMR officials said they were considering sale of Executive or a change in its relationship with American.

In an Oct. 16 conference call to discuss American's third-quarter earnings, chief financial officer Jeff Campbell said the company was considering selling all its noncore assets, including American Eagle. Some analysts have valued the regional subsidiary at about $700 million.

AMR earlier retained Salomon Smith Barney for advice concerning the value of its mutual fund management arm.

American continues to suffer from weak demand in the wake of the Sept. 11 terrorist attacks and tough economic conditions.

 

[highflying]

So is this good or bad new for eagle people?

 

[buzzer]

I heard (rumor) that if you are in MIA or SJU with Eagle and it sells, you may have a chance to return to Eagle as they recall/hire. They will take/offer 1 out of every 3 jobs needed at Eagle from the MIA/SJU pilots.

By the way....my wife (furloughed Eagle) wants to purchase your ATR manual so she can do some studying. I posted this under buying/selling.