American Airlines Cleared to Buy Boeing Planes

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AMR Corp, the parent of American Airlines, was cleared by a U.S. bankruptcy judge on Thursday to buy 32 Boeing Co planes that it had been scheduled to receive through the end of next year.

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At a hearing in New York, U.S. Bankruptcy Judge Sean Lane confirmed the carrier's continued ability to purchase and finance the planes, a company spokesman said.

American Airlines, the third-biggest U.S. airline, sought Chapter 11 bankruptcy protection in late November, citing a need to cut costs so that it could better compete with rivals .

The carrier this summer split an order for 460 single-aisle jets between Boeing and Airbus. Delivery of those planes was scheduled to start in 2013.

American has more than 900 planes in its fleet, including regional and feeder aircraft.