American in talks to sell regional unit

 - March 25, 2008, 5:55 AM

American Airlines has entered negotiations to sell its Executive Airlines subsidiary to St. John’s, Antigua-based Dash 8 operator Caribbean Star. Executive Airlines, a division of American Eagle based in San Juan, Puerto Rico, became the subject of divestiture speculation when American failed to secure relief from a clause in its pilot contract that requires it to freeze its regional affiliates’ ASMs in the event of mainline furloughs. Meanwhile, one of Caribbean Star’s competitors in the region, St. Maarten-based Winair, fears the deal will result in that little airline’s ultimate demise.