American Airlines' bankruptcy case may have an unexpected bonus for people looking to buy a home in one of London's most affluent neighborhoods. BusinessWeek is reporting that American Airlines parent AMR Corp., seeking to cut labor costs and shed aircraft leases in bankruptcy court, may sell a luxury London townhouse used by executives.
The townhouse at 16 Cottesmore Gardens in London’s ritzy Kensington neighborhood is used by the airline’s head of international business and for events, said Sean Collins, a company spokesman. AMR bought the property in 1992, according to U.K. Land Registry documents. It was listed among $24.7 billion in company-owned assets in AMR’s Chapter 11 filing in New York last month.
According to property website Zoopla.com, Cottesmore Gardens is the 10th most expensive street in the U.K. with an average home value of $9.8 million. Bonus for royal watchers: The property is about a half-mile from Kensington Palace, where Prince William and Catherine, Duchess of Cambridge live.