Bankruptcy Judge Allows American Airlines to Purchase New Planes

A judge has said that AMR Corp. can go ahead with their planned purchase of Boeing aircraft despite the fact they are in bankruptcy.

Like many airlines, which struggled for survival after 9/11, AMR Corp. the parent company of American Airlines had to seek out a bankruptcy attorney to help reduce their debt and make the airline profitable again.

U.S. Bankruptcy Court Judge Sean Lane ruled that American Airlines could begin their purchase of 200 Boeing aircraft allowing the company to clear one of the hurdles it has faced since it filed for Chapter 11 protection on November 29^th.

The judge also gave then approval to get out of leases they have on two dozen older aircraft no longer in service.

AMR Corp. resisted bankruptcy for some time until it became apparent that they could no longer be profitable. Negotiations with labor unions failed so the company felt that bankruptcy was their only option for saving American Airlines.

Bankruptcy lawyers can help all businesses large or small reduce their debt liabilities. In many instances bankruptcy protection allows the business to continue operations while they negotiate with creditors.

Debt places a number of hurdles in the way of a business’s success. By consulting with a bankruptcy attorney, the troubled business owner can determine if bankruptcy will be advantageous and allow them to save their companies. Sometimes bankruptcy can’t save the business but it can give some relief from mounting debts.