NEW YORK, January 24 (FinanceEnquiry.com) - Analysts at Deutsche Bank Securities report on Airlines industry with a focus on American Airlines.

In a research note published yesterday, the analysts mention that American Airlines is gradually focusing on its fleet size and costs through several provisions of the bankruptcy code. An important characteristic of the code is Section 1110, which states special protections for financiers of eligible aircraft.

The most important provisions of Section 1110 suggest that the airlines either confirm the financial agreement, agree to perform financial obligations going forward and cure any defaults that have occurred since the bankruptcy (Section 1110a), arrive at a consensual renegotiation or extension of terms with the financier (1110b) or reject the aircraft and return it to the financier within 60 days of the bankruptcy.

In case, an airline does not make a Section 1110a election or arrive at a Section 1110b agreement, the financiers have a clear right with historic precedents to reclaim the aircraft from the airline. Given the American