Reuters: Bankruptcy News: UPDATE 1-AMR regional carrier seeks $75 mln in cost cuts

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UPDATE 1-AMR regional carrier seeks $75 mln in cost cuts Mar 21st 2012, 17:39 Wed Mar 21, 2012 1:39pm EDT * American Eagle says savings from labor imperative * AMR could chose other regional partners- Eagle CEO March 21 (Reuters) - American Eagle, a unit of bankrupt AMR Corp and the primary feeder carrier for American Airlines, sought $75 million in labor costs savings on Wednesday as part of its restructuring. The company said in a letter to employees that achieving the cost reduction would be necessary to justify American's investment in new aircraft for Eagle to fly. "If we miss this opportunity to demonstrate that Eagle has fully competitive costs, it would provide American and AMR another reason to select other regional carriers to assume this responsibility and provide the feed we might otherwise provide," Eagle Chief Executive Dan Garton said in the letter. Eagle entered bankruptcy last year along with mainline American, which is separately seeking $2 billion in cost reductions. Garton also said that Eagle must emerge financially strong to take advantage of "any opportunity that presents itself during or after our emergence from bankruptcy." American has wanted to sell or spin off Eagle, but those plans were put on hold when the two sought court protection from creditors. Eagle handles 90 percent of American's regional business, carrying more than 15 million passengers annually. It operates more than 260 planes and 1,500 flights daily. Link this Share this Digg this Email Reprints

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