Since my duplicate thread will probably get deleted, as this is the one getting replies, I'll repost here:
Well, this is an interesting response (at least that's what it looks like) to the announcement earlier in the week that AMR was actively seeking to spin-off its wholly-owned American Eagle subsidiary.
Group, the Icelandic aviation investment management group that amassed a big stock hold in AMR last winter (peaking at 9.1%), is now getting out of AMR. They've dropped their holding down to an essentially meaningless 1.1% stake, essentially conceding defeat and resigning to the fact that AMR wasn't moving fast enough for them.
is a perfect example of stupid investing: when they saw the run down in fuel prices last winter, they bought up AMR thinking there wasn't much upside for fuel to go back up, and that AMR's fundamentals could sustain them if there was. They didn't anticipate just how high fuel would spike this year. Sucks for them, as the value of their AMR investment has basically been cut in half in less than 12 months, which can't look good to their shareholders. But, alas, that is - after all - their shareholders' problem, not AMR's.
This is fantastic news for AMR, and a vindication for Arpey, as he's now got the annoying monkey off his back of FL
in open revolt over AMR's plummeting stock price. They now can get back to running the company rather than trying to satisfy the demands of an activist institutional investor pissed off because it made a stupid investment and wants to save face.
Hopefully AMR can now back away from the pressure to start selling things off left and right, most importantly AAdvantage, which should never be sold off as it is just too valuable.
An interesting week in the house of AMR.