AMR’s Luxury London Townhouse May Go in Airline Bankruptcy Sale

American Airlines parent AMR Corp., seeking to cut labor costs and shed aircraft leases in bankruptcy court, is also weighing the sale of a luxury London townhouse used by executives.

The townhouse at 16 Cottesmore Gardens in London’s affluent 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.