AMR Corp's American Airlines has been given approval by a U.S. bankruptcy judge to buy 32 Boeing planes.
Although the airline has been in bankruptcy protection, it has been cleared to buy the planes that it is scheduled to receive through the end of next year.
In November last, AMR and its subsidiary carriers reportedly filed for Chapter 11 bankruptcy protection owing to high fuel costs, labor contracts and old fleets. To cut down some of the expenses, the company was expecting the new planes which are considered as highly fuel efficient.
According to Fox Business, American Airlines said on Friday that it grew its global network throughout 2011 by adding more than 30 new destinations through strategic relations with airlines around the globe.
For this, the airline, which is regarded as the third biggest in the country, divided an order of 460 jets between Airbus and Boeing with deliveries expected to start in 2013.
At the New York hearing, U.S. Bankruptcy Judge Sean Lane confirmed the carrier's continued ability to purchase and finance the planes, Reuters mentioned a company spokesman as saying.
The clearance is regarded as a vital step to promote the company's global expansion program. Earlier this year, American signed its joint business with Japan Airlines, further strengthening its presence in Asia.
Additional alliance agreements were announced as the year progressed, including formal government approval of its joint business with Qantas last fall - broadening American's connectivity throughout North America, China, Europe, the Middle East, South America and the South Pacific, providing greater benefits for customers around the globe.
By strengthening and broadening our presence worldwide, American and oneworld are better positioned than ever to deliver enhanced benefits to our customers, said Kenji Hashimoto, American's Vice President - Strategic Alliances.
American will continue to build upon its success with alliance partners to deliver the premier alliance network worldwide, he further mentioned.
With the program, American Airlines seeks to establish its position as an important center in the premium travel market.