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Court Enables AA's Normal Business Operations During Bankruptcy

November 30, 2011 By: George Dooley Travel Agent

AMR Corporation, the parent company of American Airlines, reports that Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York has granted approval of a series of first day motions filed by the company to help facilitate American's and American Eagle's continued normal business operations throughout the reorganization process.

AMR also reported that, as expected, American and American Eagle continued normal operations yesterday, with flights, reservations, baggage handling, customer service and other functions operating as usual.

Tom Horton, chairman, president and CEO said, "The Court's immediate approval of key motions ensures that customers around the world can continue to rely on American and American Eagle for safe, reliable and convenient air travel."

American received authorization to provide employee wages, health care coverage, vacation, and other benefits, without interruption.

Also approved: 
    •    Honor tickets and reservations, and provide refunds and exchanges as usual; 
    •    Fully maintain AAdvantage frequent flyer and other customer service programs, and ensure all AAdvantage miles and elite status earned by members remain secure and intact;
    •    Continue payments under existing fuel supply contracts; 
    •    Assume interline, clearinghouse, Airline Reporting Corporation (ARC) and similar agreements; and   
    •    Continue to use existing cash management systems and maintain existing bank accounts. 

AMR and certain of its U.S.-based subsidiaries filed to reorganize under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The case number for AMR is 11-15463, and the case number for American Airlines is 11-15464. 


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George Dooley
George Dooley, Travel Agent’s senior contributing editor covering retail and technology, has a long-standing reputation as one of the top travel industry journalists. He notes...

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By George Dooley | November 30, 2011
As expected, both American Airlines and American Eagle continued normal operations yesterday as the two companies undergo reorganization.
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