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BA ‘no comment’ on American Airlines spin-off

British Airways has declined to comment on reports that partner American Airlines is poised to sell off subsidiary American Eagle.

American Airlines confirmed it is looking to divest American Eagle last year – a move first touted in 2007 – and reports in the US now suggest it is moving to launch the regional carrier as a separate company on the stock market.

BA and American inaugurated a long-awaited transatlantic partnership last month, co-ordinating their schedules from Heathrow, having won anti-trust immunity for the alliance last year.

The UK carrier marked the alliance by launching services to San Juan in Puerto Rico, a hub for American Eagle flights around the Caribbean. BA sees the route as opening areas of the Caribbean that were previously hard to reach from the UK. But the connecting flights are operated by American Eagle.

A BA spokeswoman said: “We cannot comment on American Eagle. We are not party to the discussions.”

However, a source suggested: “BA would come to some arrangement or look at other ways its passengers could benefit from island hops in the Caribbean.”

The only other carrier operating such services is Liat, a carrier whose future is the subject of debate among Caribbean governments.

American was the one major US carrier to report a loss last year and is embroiled in a bitter dispute over distribution costs with global distribution service (GDS) owner Travelport. The carrier launched a lawsuit against Travelport in Texas last week.

US commentators forecast serious opposition from pilots to a sell-off of American Eagle.

 

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