American Airlines' parent AMR is to spin off its computer reservations and IT subsidiary Sabre as a separate company, allowing it to focus on the airline and its sister regional airline, American Eagle.
AMR will spin off its 83% interest in Sabre early next year by distributing its 107 million shares in the business to AMR shareholders. Sabre will become a "fully independent technology company" under a new president and chief executive, William Hannigan, who joins from telecommunications company Southwestern Bell.
Sabre was originally part of American Airlines but became a separate subsidiary in 1996, when an initial public offering made 18% of the company's shares available to investors.
Before the spin-off, Sabre will pay a one-off $675 million cash dividend to shareholders, including AMR.
Source: Flight International
