US carrier, American Airlines, has decided that it will revive the plan of spinning off its regional arm.

The plan was put into cold storage after the shareholders of the company began to pressurize the company to do so and questioned the long -term strategy of the airlines.

American Eagle, is into the business of flying smaller jets and turboprops. American Airlines wanted to make this a separate unit altogether, just like the other airlines.

But the shareholders did not agree to this. Most of the fire occurred after the investors failed to see the much-hyped up success of UAL Corp.'s United Airlines and Continental Airlines Inc.

As of now, these small jet companies form more than half of all the domestic flying, and so keep it separate from the company, did not make sense to the shareholders.

And instead of selling Eagle, American Airlines went for spinning off of its AAdvantage frequent-flier unit.

But now, the CEO of American Airlines is under the scanner for making wrong long-term strategy. And now, it is looking forward to go ahead with the old plans.