AMR Corp., the parent company of American Airlines, has received overwhelming support by creditors and shareholders for its reorganization plan
Out of eight creditor classes, 88 percent of the ballots received supported the plan, and 99 percent of shareholders voted for the new direction.
AMR has been soliciting approval for its regorganization plan since early June, when the court authorized the new direction, which had been filed in mid-April. A confirmation hearing is scheduled with the U.S. Bankruptcy Court for the Southern District of New York on Aug. 15 during which the court will either approve or deny the reorganization.
“This is another important milestone toward our launch of the new American. The overwhelming support for our Plan of Reorganization is a testament to the resilience and hard work of the entire American team,” AMR’s chairman, Tom Horton, said in a statement. “Our people have stood tall and remained focused on putting our customers at the forefront of everything we do. That has made all the difference.”
American’s proposed merger with US Airways is still moving forward, with industry watchers anticipating approval of the merger by all related authorities leading to a close of the deal by the fourth quarter. The EU Commission has already indicated it will likely approve the deal, and U.S. authorities are expected to approve the merger by Oct. 1.
In June, the two carriers announced additional appointments for the cargo side of the combined airline, which will be untied under the American Airlines brand. The current head of AA Cargo, Kenji Hashimoto, will become the senior vice president of regional carriers. His replacement, Jim Butler, is moving over from his spot as the managing director of commercial planning and performance. US Airways’ Suzanne Boda will take over as AA’s senior vice president for Asia, Canada, Europe and cargo. - Jon Ross