The bankruptcy battle takes off once again for American Airlines Thursday morning.
American is asking a bankruptcy judge in New York for more time to try to reorganize on its own, before considering a merger with another airline. American’s parent company, AMR is asking for a three-month extension, until December 27th.
If the judge extends the exclusive rights, it means other airlines can’t offer competing plans for a merger and would delay any formal proposal from US Airways, which is considering a takeover.
A three-month delay likely also means missing CEO Tom Horton’s goal of getting out of bankruptcy by the end of the year.
American’s three unions have said they don’t back the company’s stand-alone business plan that could slash some 13,000 jobs.
The new extension request comes just a day after AMR reported its narrowed second-quarter loss of $241 million from $286 million one year ago. The results weighed down by the cost of AMR's bankruptcy restructuring.
The hearing is set for 9 a.m.
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