American Airlines Inc. obtained a court order approving the agreement for Republic Airways Holdings Inc. to operate 76-seat regional jets. The 12-year deal calls for Republic Airways to fly 47 new Embraer E-175 76-seat regional jets, which are expected to be in operation by the first quarter of 2015. The deal is part of American Airlines' effort to diversify suppliers of commuter flights beyond its American Eagle unit, and to add larger regional jets that are more economical to operate. American Eagle lacks the required 76-seat regional jets, and could not "realistically" operate such aircraft within the timeframe required under American Airlines' business plan, according to a declaration by Charles Schubert, American Airline's vice-president of network planning. Republic Airways, an operator of large Embraer jets, is a long- time partner of American Airlines. Its subsidiary, Chautauqua Airlines, operates regional jet service for American from its hub at Chicago O'Hare with 15 Embraer E-140 planes. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP serve as counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings. Togut, Segal & Segal LLP is the co-counsel for conflicts and other matters; Moelis & Company LLC is the investment banker, and Mesirow Financial Consulting, LLC, is the financial advisor. AMR and US Airways Group, Inc., on Feb. 14, 2013 announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000).
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