AMR Corp., the parent of American Airlines Inc., was given authority from the bankruptcy court last week to resume making predelivery payments for new aircraft to be made by Boeing Co. and Airbus SAS.
To replace aging MD80s and B757s, AMR has orders for 290 aircraft from Boeing, along with options for 175 more. From Airbus, there are orders for 260 and options for 365. Nine aircraft were delivered since the Chapter 11 filing.
AMR hadn’t made progress payments for new aircraft since filing for bankruptcy. The authorization given last week allows AMR to make up the $162 million in progress payments and make installments in the future when required. AMR’s papers don’t give details on the purchase agreements with Boeing and Airbus, saying the information is confidential and proprietary.
AMR, based at the airport midway between Dallas and Fort Worth, Texas, listed assets of $24.7 billion and debt totaling $29.6 billion in the Chapter 11 reorganization begun in November. American Airlines entered bankruptcy with 600 aircraft in the mainline fleet and another 300 with American Eagle, the feeder airline.
The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).