(Reuters) - American Airlines’ bankruptcy restructuring should make the carrier more profitable and able to purchase more aircraft, the head of Boeing Co’s commercial airplane division said on Wednesday.
Speaking at a Credit Suisse aerospace and defense conference in New York, Jim Albaugh said the bankruptcy filing by the AMR Corp unit would give the carrier long-term stability. But in the short term, American may ask to restructure some aircraft leases, he said.
“Taking a long-term view, the American bankruptcy is a very positive thing for them and a very positive thing for us,” Albaugh said. “By going through a restructuring, they’re going to come out of it a very competitive airline.”
American is the third-largest U.S. airline. The company. which suffers from higher labor costs than its peers, filed for Chapter 11 on Tuesday.
This year the carrier placed a giant split order for 460 single-aisle jets worth up to $40 billion with Boeing and its European rival Airbus EADS.
Bankruptcy could jeopardize parts of the order that are not yet firm. On Tuesday, AMR Chief Executive Officer Tom Horton called the order “rock solid.”
Reporting by Kyle Peterson; Editing by Lisa Von Ahn