American Airlines, Citigroup Agree to Uphold Credit Card Tie

Citigroup Inc. (C) and American Airlines agreed that the airline would retain the bank’s partnership in its loyalty credit-card and mileage program, according to a court filing.

“For the avoidance of doubt, the Debtors irrevocably and as of the date hereof waive any right to seek to reject the Citibank Agreements unless the Plan is withdrawn or the Court refuses to enter the Confirmation Order,” lawyers for the airlines said in court papers.

American’s AAdvantage loyalty program has about 69 million members and will regain its ranking as the industry’s largest when the Fort Worth, Texas-based airline merges with US Airways Group Inc. The two carriers have been negotiating with banks including New York-based Citigroup and Barclays Plc to provide a branded credit card once they combine.

“This filing is a step toward final assumption of Citi’s existing contracts with American Airlines. We look forward to continuing our productive relationship with American and serving our shared customers during this exciting phase of growth,” Emily Collins, a Citigroup spokeswoman, said in an e-mailed statement. She declined to comment on what could happen in the future regarding Barclays’ involvement.

AMR Corp. (AAMRQ), the parent of American Airlines, filed for bankruptcy on Nov. 29, 2011, and expects to exit court protection in this year’s third quarter.

The case is In re AMR Corp., 11-15463, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

American Airlines, Citigroup Agree to Uphold Credit Card Tie. By Dawn Mcarthy. 2013, June 03. Retrieved from http://www.bloomberg.com/news/2013-06-03/american-airlines-citigroup-agree-to-uphold-credit-card-tie-1-.html.

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