Bloomberg News

American Airlines Says $10.2 Million Is Owed on 19 Planes

January 06, 2012

(Adds bankruptcy filing in third paragraph)

Jan. 4 (Bloomberg) -- AMR Corp., the owner of American Airlines that filed for bankruptcy last year, said it plans to keep 19 planes on which $10.2 million is owed for rent or debt payments under aircraft agreements.

AMR listed the planes and the amounts owed in a filing yesterday in U.S. Bankruptcy Court in Manhattan. The filing listed another 28 planes on which the company said it didn’t owe any money. AMR has more than 900 planes in its fleet.

Once the world’s largest airline, AMR, based in Fort Worth, Texas, filed for bankruptcy on Nov. 29, listing debt of almost $30 billion. The airline last month won court permission to pursue a deal to buy 32 planes from Boeing Co. through 2012, and to reject leases on some aircraft as it reorganizes with a more competitive fleet.

The company “believes that the market values of, and market leases for, many of the aircraft have changed substantially since the aircraft were originally leased or financed,” AMR said in a Dec. 8 filing.

In yesterday’s filing, the company listed the amounts that it believes must be paid to cure any defaults in the payment of basic rent or debt service under the aircraft agreements.

For each of the 19 planes listed as requiring cure payments, the amount was about $500,000.

The airline warned creditors if objections to the amounts owed aren’t received by deadlines set in the bankruptcy code, they would be barred from making claims in relation to those amounts.

AMR is now the third-largest U.S. airline company.

The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--With Assistance from David McLaughlin in New York. Editors Michael Hytha, Douglas Wong

To contact the reporter on this story: Joe Schneider in Sydney at jschneider5@bloomberg.net

To contact the editor responsible for this story: Douglas Wong at dwong19@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus