American is retiring 35 to 40 regional jets as well as an unspecified number of turboprops as part of its efforts to cope with rising fuel costs that reached $135 a barrel yesterday. The move is coupled with the retirement of at least 40 to 45 mainline jets, mostly MD-80s but also some Airbus A300s. AMR regional affiliate capacity is expected to decline by 10 percent to 11 percent in the fourth quarter compared to fourth quarter 2007 levels. Previously, regional affiliate capacity in the fourth quarter was expected to increase by 2.0 percent from 2007 levels. American has been unable to sell its American Eagle operation since it announced its intention last November. Related Story www.aviationtoday.com/ran/categories/commercial/17491.html The capacity changes will result in workforce reductions at both American Airlines and American Eagle Airlines and could result in facility closures or facility consolidation. AMR is assessing the scope and location-specific impact of any workforce reductions resulting from the capacity reductions. In addition, AMR is assessing the impact of these capacity reductions on its overall cost outlook. For a complete report see the next issue of Regional Aviation News.