AMR Corporation announced (01-Aug-2013) the preliminary voting results on the company's plan of reorganisation. Of the eight creditor classes entitled to vote, at least 88% of the ballots received and tabulated in each class were voted in favour of the plan. More than 99% of the shares tabulated for the class of AMR stockholders voted to accept the plan. The final results will certified and filed with the US Bankruptcy Court for the Southern District of New York, which is hearing the company's bankruptcy case. AMR Corporation chairman, president and CEO Tom Horton said: "This is another important milestone toward our launch of the new American. The overwhelming support for our plan of reorganisation is a testament to the resilience and hard work of the entire American team. Our people have stood tall and remained focused on putting our customers at the forefront of everything we do. That has made all the difference." AMR Corporation stated: "The effective date of the plan and American's chapter 11 emergence are expected to occur simultaneously with the closing of the merger with US Airways. The merger is expected to close in the third quarter of 2013." [more - original PR] [more - original PR - II] [more - original PR - III] [more - original PR - IV]
AMR Corporation announces strong shareholder approval of reorganisation plan
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DOT rejects the notion that such larger market share can possibly be in the interest of consumers. Yet it appears to overlook the benefit American might bring in exchange for incremental market share gains. Nor is it clear if this combination is more anti-competitive than some JVs where two airlines, each with a small- or medium-sized position, combine and become multiples larger. Qantas' 53% market share was earned through quality and smart loyalty programme development while competitors lagged.
Qantas will continue growth in North America, its most successful international market, but American Airlines' growth is uncertain and it may re-evaluate a supposedly planned Los Angeles-Melbourne 787 service.
United Airlines Part 1: New management declares ambitions to usher in a new competitive era
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