Group to Challenge AMR’s offer for Reno Air

A Reno-based holding company plans to sweeten American Airlines’ offer for Reno Air to keep the hometown company in Nevada. Aviation Technologies Ltd. said it plans to offer $8.15 a share for the company’s common stock, 40 cents more than American is proposing. “We think it’s a $200-million to $220-million corporation,” Aviation Technologies Chairman and Chief Executive Robert Kemp told the Reno Gazette-Journal. He called the American offer outrageous. In addition to the $124-million stock buyout, American would assume approximately $50 million in Reno Air debt. Kemp said his group wants to keep Reno Air’s hub in Reno and expand its long-distance service. He said Aviation Technologies believes Reno Air can survive as an independent airline. Reno Air shares rose 3 cents to close at $7.72 on Nasdaq. AMR Corp., parent of American Airlines, fell 58 cents to $59 on the NYSE.