American Airlines Gets Court Approval to Do Business as Usual
By Kate Rice
November 30, 2011 12:29 PM
American Airlines and American Eagle said they have received the first of a series of court approvals necessary for them to continue normal business operations as they reorganize while under Chapter 11 bankruptcy protection. Judge Sean Lane of the U.S. Bankruptcy Court for the Southern District of New York approved a series of first day motions filed by the airline company.
The court authorized American to provide employee wages, health care coverage, vacation, and other benefits, without interruption and to honor tickets and reservations, and provide refunds and exchanges as usual. American will fully maintain AAdvantage frequent-flyer and other customer service programs, and ensure all AAdvantage miles and elite status earned by members remain secure and intact.
American also continue payments under existing fuel supply contracts; assume interline, clearinghouse, Airline Reporting Corporation (ARC) and similar agreements; and continue to use existing cash management systems and maintain existing bank accounts. AMR, parent company of American and American Eagle, has filed to reorganize under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.