AMR Could Break Airplane Leases–Reuters
AMR, the parent company of American Airlines, which is currently in Chapter 11. It may be able to break a large number of airplane leases which could save several hundreds million dollars. The final decision about the leases will be…
AMR, the parent company of American Airlines, which is currently in Chapter 11. It may be able to break a large number of airplane leases which could save several hundreds million dollars. The final decision about the leases will be at the discretion of the bankruptcy court.
Aircraft leases are likely to be the biggest trimmable cost after labor for AMR, which filed for Chapter 11 on November 29 in New York, citing uncompetitive labor costs as a key disadvantage in an industry that wrestles with overcapacity and high fuel costs. American is the third largest U.S. carrier.
Aircraft and equipment leases amount to around a third of AMR’s roughly $30 billion in liabilities.
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