AMR Corp. will push back the divestiture of its regional carrier, American Eagle, until next year as the company waits for Eagle's pilots union to vote on a tentative agreement.
"We plan to wait for the [union] vote to be concluded before moving through the final stages of the divestiture, because a more cost-competitive Eagle will benefit both companies," AMR spokesman Sean Collins said. "It would provide greater stability for AMR and for Eagle, allowing both companies to have more competitive cost structures from which to grow their businesses."The Fort Worth-based carrier has already begun transferring assets and reorganizing Eagle in preparation for the spinoff, he added.In October, the Air Line Pilots Association and American Eagle reached an eight-year tentative agreement that guaranteed that American Airlines will use all of Eagle's jet fleet for five years as part of a new air services agreement. The proposed contract also includes furlough protection guarantees for pilots if the terms of the air services agreement are changed.The union is working to finalize the contract language with Eagle and plans to conduct meetings at its crew bases before putting the tentative deal up for a contract vote.AMR has said previously that it plans to spin off Eagle to AMR shareholders but has not said how many shares of the new Eagle company each shareholder would receive. AMR shares (ticker: AMR) closed up 8 cents at $1.80 on Friday."Obviously, we are also sensitive to the current volatility in the capital markets which could impact the timing," Collins said about the divestiture.Shares of AMR have dropped below the $2 mark as uncertainty over negotiations with American Airlines' pilots has raised concerns about a possible bankruptcy.In a negotiating update sent to pilots Friday, the Allied Pilots Association said there are more than 150 open contract items as well as "considerable gaps" between the union and American Airlines."After months of intense negotiations, it became clear last week that no deal was coming together," the APA negotiations committee told its members.Earlier this week, American posted its comprehensive proposals on its negotiations website, pushing the private meetings into public view. The union said in its hotline that it will begin posting its proposals Tuesday at APAnegotiations.com, a site that is password protected for APA members.The union also provided a list of the 150 items that are still being negotiated.There are no talks currently scheduled between the union and American.Andrea Ahles, 817-390-7631Have more to add? News tip? Tell us
