Icelandic investment company FL Group has cut its stake in AMR to 1.1 percent from 9.1 percent, citing a lack of progress by the owner of American Airlines in boosting shareholder value.
In September, FL sent an open letter to AMR's board urging the company to consider strategic alternatives, such as monetising assets such as the frequent-flyer programme, AAdvantage. Although it acknowledged AMR's plans to sell or spin off its American Eagle regional-airline business, FL Group said the proposal had done little to move the stock price, and more needed to be done.
FL Group said while its proposal received a positive reception from stakeholders, AMR's management has not been able to take advantage, and, combined with the external factors of high fuel costs and a tightening of the US economic environment, the AMR share price has continued to suffer.
AMR said the company remains focused on managing the business and on the long-term interests of our shareholders. AMR chief financial officer Tom Horton said earlier this week that the airline would continue to evaluate the sale of some assets.
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Source: cargonewsasia
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