Employee Wages, Benefits To Continue Without Interruptions

Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York granted approval Wednesday to a series of first day motions filed by the AMR Corp to help facilitate American's and American Eagle's continued normal business operations throughout the reorganization process.

The company also reported that American and American Eagle continued normal operations Wednesday, with flights, reservations, baggage handling, customer service and other functions operating as usual.

"American continues to make progress on our path to a successful future," said Tom Horton, Chairman, President and Chief Executive Officer of AMR and American Airlines. "The Court's immediate approval of key motions ensures that customers around the world can continue to rely on American and American Eagle for safe, reliable and convenient air travel.  As American's employees have continued to demonstrate, we are committed to our customers and we are confident in our future."

American received authorization to, among other things:

• Provide employee wages, health care coverage, vacation, and other benefits, without interruption.  
• Honor tickets and reservations, and provide refunds and exchanges as usual.
• 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.
• Continue payments under existing fuel supply contracts. 
• Assume interline, clearinghouse, Airline Reporting Corporation (ARC) and similar agreements. 
• Continue to use existing cash management systems and maintain existing bank accounts.

  
As announced Wednesday, AMR and certain of its U.S.-based subsidiaries filed to reorganize under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York. The case number for AMR is 11-15463, and the case number for American Airlines is 11-15464. 

FMI: www.AMRcaseinfo.com