American Airlines bankruptcy

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The American Wedding moves closer.

On Wednesday, U.S. Bankruptcy Judge Sean Lane approved the plan of American Airlines parent company: AMR Corp to merge with US Airways. The merger still needs regulatory approval. American Airlines must also construct a formal restructuring plan that incorporates the merger. If the courts and creditors approve this plan, then the airline can emerge from the bankruptcy status it has held since November, 2011. American was the last of the major US legacy airlines to go through the Chapter 11 process. They filed for bankruptcy citing untenable labor costs after years of fruitless negotiations with…

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AA Bankruptcy Restructure- What does it mean? [Updated]

As I suggested on October 4, American Airlines has filed for Chapter 11 bankruptcy. In its petition filed in New York,  AMR reported assets of $24.72 billion and liabilities of $29.55 billion. The company has $4.1 billion in cash. They have lost about 50 billion dollars in the last decade. The bankruptcy will give the carrier the opportunity to reduces its debt levels.  A chapter 11 filing allows for a reorganisation. The aim is to survive. What does this filing mean? Not much will change immediately. Existing ticket holders will find their tickets are honoured. Planes will still…

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