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June 29, 2012

AMR wants exclusivity period in bankruptcy extended to Dec. 27

American Airlines' parent company, AMR Corp., announced on Friday that it wants an additional three months to file its reorganization plan with the bankruptcy court.

The carrier and the committee of unsecured creditors have agreed to request the extension, giving AMR until December 27 to file its plan. Currently, AMR's deadline is September 28.

Any extension of the exclusivity period would likely delay a bid by US Airways, who has publicly said it wants to merge with AMR while the Fort Worth-based carrier is in bankruptcy.

US Airways declined to comment on the extension request.

-Andrea Ahles

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Comments

Rob

Of course they want another extension. They are trying to prolong the agony of being taken over by US Airways. In December, I am sure they will request yet another extension.

Raf

In the first quarter of this year American lost 1.7 billion dollars while in bankruptcy proceedings. Many passengers are weary of traveling on a bankrupt airline because of the uncertainty involved. To extend the bankruptcy further will hurt American Airlines even more and can result in some market share loss. The uncertainty is also stretching some American Airlines employees to the breaking point. Incidents like the one recently involving a flight attendant in LaGuardia Airport does not help and promote a positive image of American Airlines which it direly needs to keep in place. Rare incidents like these are the exception, not the rule, but any kind of negative news about American Airlines does not help its image and does not help its ability to establish a good running head start when it exits bankruptcy. I personally think it is a mistake for American Airlines to extend the bankruptcy. AMR needs to go back into the business of making money not losing money.

PO'D

Rob,

The idea is to prolong it as much as possible to deepen the companys cash. By the time January rolls around, more than likely AA will have close to 8 bills in the bank. Do you really think us air will have a chance by then?

By then the company will be able to prove it's plan is on track or even exceeding expectations.

Think about that....

Private Jet Hire Direct

I wonder if it was a small company or an individual whether they would be granted the same rights?

ted

Why would AMR want to deal with any other airline until AFTER the union contracts are voided. Whatever value there is in this company, it will likely double once the cost structure is reduced by eliminating the pension and bloated contracts.

Rag

I am curious to know how American Airlines will accrue "close to 8 bills in the bank"? Are we talking about 8 dollar bills or 8 billion dollars? American Airlines had a net loss $132,000,000 in the month of May alone! May, June and July are the peak season for all the airlines! American Airlines promised a pay increase to their pilots and other union members. I wonder what mathematical algorithm will show 8 billion dollars in American Airline's bank let alone 8 dollar bills inside the bank with this current rate of loss that American Airlines is incurring while in bankruptcy six months from now?

Rob

Rag -

I agree with you. Tom Horton tells us that the company is thriving! Somewhere along the line, I have lost my ability to comprehend how multi-million dollar losses translates into a profit.

Read between the lines

Please look at those numbers real closely. When AMR first filed for bankruptcy, they had $4 billion dollars on hand in the form of cash and short term investments. Now, they have over $ 5 billion in those same investments. AMR is reporting losses but in essence, those losses are just on paper. They are actually getting quite healthy in bankruptcy. It is not as simple as your personal finances. They are shedding unwanted debt obligations, restructuring others and doing fine. Also, the executives are going to be quite rich. once they exit bankruptcy. They will all be granted new stock in the new AA, which will have a nice value. A friend of mine had Mr. Horton on a flight the other day and in Mr. Horton's own words, he said, "These are exciting times at American Airlines."

frontline

This is a good sign for support for AA's standalone plan. Many of us want nothing to do with a US Airways takeover, so I'm glad to see the creditors and judge are allowing AA enough time to get it's plan ready.

Delta and United certainly had enough time, so fair is fair.

Pam Jennings

Whatever this company can do to break up the union stranglehold must be done. What happened prior to bankruptcy and whose at fault, does not enter into the discussion. This is a post bankruptcy era situation and having a half dozen unions trying to cut off the company's air supply while expecting it and them to survive, is ludicrous. Unions in America must be broken, dismantled, and mentioned only in history books. AMR will survive if it can get the leaches off it's back. Best of luck AMR.

patty

Read the book Attention Passengers: when the flying public is happy to pay $99.00 for a ticket ask yourself, "how is this possible?" I'll tell you how---from the pay cuts of all airline employees! Safety is no longer a priority--management, including Tom Horton, would do well to read this book!

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