"Late Thursday, AMR, American Airlines , AMR Eagle, etc. filed papers in bankruptcy court asking for an extension of the time period for them to decide if they will keep or eliminate the 216 Embraer regional jets in American Eagle's fleet.
The filing was under Section 1110(b) of the federal bankruptcy code, which gives the aircraft operator more time to decide if it wants to retain the airplanes and work out an agreement with the aircraft owner, lender or lessor.
AMR and its subsidiaries have 60 days from time of the filing for Chapter 11 protection to elect to keep the airplanes and bring the payments up to date (Section 1110(a)), decide to give them back (Section 1110(c)) or ask for a time extension (Section 1110(b)).
Friday is the end of the 60-day period, based on the Nov. 29 Chapter 11 filing date.
By our count as of 7:45 p.m. CST Thursday, AMR/American has filed to retain 250 of its airplanes under 1110(a) provisions, and keep 106 aircraft with an extension of time under 1110(b). It has rejected 42 airplanes under 1110(c).
That is slightly less than two-thirds of the airplanes in American's fleet, so we'll see more filings before the end of the day Friday.
For American Eagle aircraft, AMR/American is holding onto the 216 Embraer regional jets and 39 ATR turboprop airplanes under 1110(b), plus 47 Bombardier regional jets under 1110(a)."
"Late Thursday, AMR, American Airlines , AMR Eagle, etc. filed papers in bankruptcy court asking for an extension of the time period for them to decide if they will keep or eliminate the 216 Embraer regional jets in American Eagle's fleet.
The filing was under Section 1110(b) of the federal bankruptcy code, which gives the aircraft operator more time to decide if it wants to retain the airplanes and work out an agreement with the aircraft owner, lender or lessor.
AMR and its subsidiaries have 60 days from time of the filing for Chapter 11 protection to elect to keep the airplanes and bring the payments up to date (Section 1110(a)), decide to give them back (Section 1110(c)) or ask for a time extension (Section 1110(b)).
Friday is the end of the 60-day period, based on the Nov. 29 Chapter 11 filing date.
By our count as of 7:45 p.m. CST Thursday, AMR/American has filed to retain 250 of its airplanes under 1110(a) provisions, and keep 106 aircraft with an extension of time under 1110(b). It has rejected 42 airplanes under 1110(c).
That is slightly less than two-thirds of the airplanes in American's fleet, so we'll see more filings before the end of the day Friday.
For American Eagle aircraft, AMR/American is holding onto the 216 Embraer regional jets and 39 ATR turboprop airplanes under 1110(b), plus 47 Bombardier regional jets under 1110(a)."
American Airlines hangs onto all 216 Embraers in American Eagle's fleet for a while longer | Airline Biz Blog | dallasnews.com