AMR Seeks More Time to Develop Own Reorganization Plan

Reuters

AMR Corp , the parent of American Airlines, and its unsecured creditors want more time to file a reorganization plan in bankruptcy without interference from other parties, the company said on Friday.

American, which sought court protection in November, asked a New York bankruptcy court to extend its so-called exclusivity period by three months to December 27.

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The airline had no immediate comment on its request.

Some pressure on the company was relieved this week when it reached a tentative contract agreement with pilots aimed at cutting costs, and prospects brightened that other unions may also soon reach new collective bargaining deals.

American's unions want the airline to merge with US Airways to compete more fully with rivals who restructured in bankruptcy.

American has said it would weigh all options, including consolidation.

(Reporting by John Crawley; additional reporting by Kartick Jagtap in Bangalore; Editing by Leslie Gevirtz)