American Airlines seeks to extend deadline for reorganisation plan

AMR Corp, the parent of US carrier American Airlines, has filed for another extension with the bankruptcy court to delay its reorganisation plan, local media reported yesterday.

AMR currently has until 11 March to file its re- organisation plan, but in paperwork filed last week with the bankruptcy judge in New York, AMR and its unsecured creditors committee requested the court to extend its reorganisation plan until 15 April, according to news website NewsOn6.com.

As part of its re-organisation plan, American Airlines may merge with US Airways in a deal that will create the world's largest airline.

Negotiations have stalled on who would own how much and who would lead the carrier.
 
AMR is seeking 80 per cent ownership to creditors in the merged entity and 20 per cent for US Airways shareholders, while US Airways wants 70 per cent and 30 per cent division, according to media reports.

Accumulating losses of $11 billion, AMR and some of its subsidiaries, including American Airlines and American Eagle filed for bankruptcy protection on 29 November 2011, although it had $4.9 billion in cash and short-term investments.

Explaining the rationale for filing Chapter 11, the airline had then said it was trying to "achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers."

American Airlines, the last major US airline struggling to keep afloat without bankruptcy reorganization, is also looking to terminate the pensions of 130,000 workers as part of its bankruptcy proceeding.