American Airlines trimmed two routes, cut 150 workers and asked the bankruptcy court for approval to hire more advisers to help in its restructuring.
In a bankruptcy filing made Monday, American's parent company, AMR Corp., said it plans to hire SkyWorks Capital as an "aircraft restructuring adviser" and pay the firm at least $6.675 million for the first 15 months that American is in bankruptcy.The Fort Worth-based carrier said SkyWorks would also provide current fair-market values on the aircraft in American's fleet. American will also pay SkyWorks transaction, financing, sales and strategic fees, according to the filing."The employment of SkyWorks is essential to the successful restructuring of [American's] business," the filing said.SkyWorks' advising work is in addition to the restructuring and bankruptcy services that will be provided by Rothschild Inc.Two weeks ago, American asked the bankruptcy court for permission to use Rothschild and pay the firm $200,000 a month, plus a $15 million fee, if the company's restructuring plan is accepted by the court.American also announced Monday that it will cancel its Chicago-New Delhi service and this spring will stop its route from Dallas/Fort Worth Airport to Burbank, Calif.The airline also said it will lay off 150 airport-related employees as part of "operational and business changes" that occurred before AMR filed for Chapter 11 bankruptcy protection in November.American said it is laying off workers in its airport services work group because it lost a U.S. Postal Service domestic mail contract and is closing its ground service equipment refurbishment shop in St. Louis.There is no impact on DFW workers, American spokesman Tim Smith said.Separately, American Eagle, with its parent in bankruptcy, said it hired Bain & Co. to help assess labor costs. Eagle is seeking the court's approval to use Bain & Co. and pay the firm a monthly fee of $525,000 for services."Broadly speaking, Bain will assist in labor-cost assessment and negotiations," the filing said.In the six months before AMR's bankruptcy filing, Eagle said it paid Bain $1.125 million in professional services fees. Bain has also said Eagle owes the firm $1.925 million in a pre-petition bankruptcy claim but will waive the claim if the court approves Eagle's hiring of Bain.Andrea Ahles, 817-390-7631Twitter: @Sky_TalkHave more to add? News tip? Tell us
