Air Transport World

American Eagle selling Executive Airlines. (Regional News).(Brief Article)

American Airlines' Regional affiliate American Eagle announced it signed a letter of intent to sell Puerto Rico-based Executive Airlines back to the carrier's founder, Joaquin Bolivar, a local businessman who launched Executive in 1979. The sale is part of an ongoing effort by American to remain in compliance with its Allied Pilots Assn. contract that places limits on flying done under the AA code by Regional partners. Financial terms were not disclosed. The agreement calls for a marketing partnership with Bolivar under which Executive will continue to provide feed traffic to AA under its own code to and from San Juan and to AA's Miami hub.

Over the past year, American Eagle has taken other steps to remain in compliance with the scope clause including grounding some aircraft and pulling seats out of others to reduce overall ASMs, Eagle spokesperson Lisa Bailey told ATW. …

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