’ newly filed plan of reorganization, which centers on its proposed merger with , provides details of a drastic overhaul of its regional operation’s cost structure through a combination of aircraft returns and reduced leasing payments.
The cost ofAirlines’ fleet was a burden to its parent company prior to the company’s Chapter 11 filing in November 2011, and during the court protected restructuring American first negotiated the return of 18 ERJ-135s and later a sale and leaseback of the 21 ERJ-135s remaining in Eagle’s fleet.
But court filings submitted late April 15 now disclose the full extent of American’s plan for Eagle’s Embraer fleet. Those 21 ERJ-135s, for instance, are only on lease for $40,000 a month on contracts expiring between Jan. 1 and Dec. 31, 2013. At year-end, American will “no longer have any payment obligations,” the airline notes in its disclosure statement.
American also says the lease payments on its fleet of 58will be cut 49% and payments on 68 of its 188 ERJ-145s by 34%, pending amendments to existing financing documents.
Lease payments on the remaining 50 ERJ-145s in Eagle’s fleet are unchanged, American notes.
The changes to the Embraer fleet will save American about $670 million. No changes to the debt associated with Eagle’s 47are detailed.
American’s disclosure statement also confirms that the mainline carrier intends to take delivery of 130 leased-family aircraft between 2013 and 2017 and purchase another 130 A320NEO-family aircraft between 2017 and 2022, as well as “approximately 300 new aircraft, including 737, 777 and 787 aircraft” from between 2012 and 2025.
Airbus’s current order book currently lists 130 A321s on order from American, although the first deliveries are expected to be A319s starting this summer. Boeing’s current order book lists 102, 100 737MAX, 15 , 12 and 12 787-9s destined for American.
The April 15 plan of reorganization is another step in American’s merger with US Airways and emergence from Chapter 11. Objections to this plan are due by May 23 and the airline’s bankruptcy court will consider the disclosure statement seven days later.
Creditor and shareholder approval also is required, and a ballot is scheduled for late July, and if granted the company will seek final confirmation of the reorganization plan Aug. 15.