Court Filings Show Plan To Save $750 Million Per Year In Operating Costs

American Airlines parent company AMR has asked the U.S. Bankruptcy Court for the Southern District of New York for permission to hire additional consultants to assist in its restructuring, according to documents filed with the court.

The court gave the company interim approval last week to hire 13 consultants to create it's plan to emerge from bankruptcy. The additional firms would advise AMR in the areas of employment management, airport facilities, property tax, and other special bankruptcy issues, according to a report in Tulsa World. It has sought permission to bring on the Boston Consulting Group Inc. as strategic management consultants.

The court filings bring the company's plan to save $750 million per year in costs through such measures and grounding older planes, restructuring its debt and leases, and facilities reduction.

AMR has already announced the retirement of two senior vice presidents as part of the management reorganization, and that the senior staff has been reduced from 14 to 10.

It also wants to hire AvAirPros to evaluate its real-estate holdings, as well as other companies including a law firm with international expertise. The company says it will need 8 months to complete its reorganization plan.

FMI: www.aa.com/i18n/amrcorp/corporateInformation/facts/amr.jsp