BUSINESS

American Airlines to buy 460 new planes, spin off American Eagle

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FORT WORTH, Texas (AP) — American Airlines is buying at least 460 new planes over the next five years and splitting the order between aerospace giants Boeing and Airbus.

(Photo: Associated Press)

American's parent, AMR Corp., said Wednesday it will buy 260 planes from Airbus and 200 from Boeing. It will also take options and purchase rights for up to 465 additional planes through 2025.

The airline expects the new, better-mileage planes will save money on fuel and provide more enticing amenities to passengers.

Also on Wednesday, AMR said it expects to spin-off regional carrier American Eagle, but it still won't completely rule out a sale.

The company didn't offer a timeframe for the plan, announced Wednesday. American Eagle carries passengers from smaller cities to American Airlines hub airports.

AMR, which is based in Fort Worth, Texas, says making American Eagle an independent company allows it to compete to provide regional service for other big airlines and grow larger. All major U.S. carriers use smaller airlines to run their regional flights.

As it proceeds with the spin-off, AMR says it remains open to other options, including a sale, as the deal moves forward.

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