American Airlines
American Airlines and its parent company AMR Corp filed for bankruptcy on Tuesday after failing to win a labor deal with pilots and suffering from mounting fuel costs. [1]
NEW YORK (CNNMoney) — American Airlines parent AMR, one of the few major U.S. airlines to avoid bankruptcy, finally succumbed Tuesday and filed for chapter 11. [2]
Saddled with an aging fleet of aircraft and high labor costs, the parent company of American Airlines filed for bankruptcy Tuesday, seeking protection from creditors while it restructures its operations. [3]
“American Airlines is operating normal flight schedules, honoring tickets and reservations as usual, and making normal refunds and exchanges. [...] Despite the bankruptcy filing, however, AMR promised customers it would be business as usual at its American and American Eagle units. [4]
Management probably became convinced that it could not achieve its desired cost cuts without bankruptcy and decided to file while it had the cash to sustain itself during restructuring, Neidl said. [...] AMR, which replaced its chief executive in the move, had been mired for years in fruitless union negotiations, complaining all the while that it shoulders higher labor costs than rival domestic and foreign carriers that have already restructured in bankruptcy. [5]
American Airlines parent AMR Corp. filed for bankruptcy after failing to secure cost-cutting labor agreements and sitting out a round of mergers that dropped it from the world’s largest airline to No. 3 in the U.S. With the filing, American became the final large U.S. full-fare airline to seek court protection from creditors. [...] View Photo Gallery - Researchers Brent D. Bowen of Purdue University and Dean E. Headley of Wichita State University compile an annual list of airline quality ratings based on measures such as on-time arrivals, mishandled baggage, oversales and customer service. [3]
Bloomberg News writes that “with the filing, American became the final large U.S. full- fare (legacy) airline to seek court protection from creditors. [4]
Sources:
[1] American Airlines, AMR file for bankruptcy
[2] American Airlines files for bankruptcy
[3] American Airlines parent files for bankruptcy
[4] American Air parent AMR files for bankruptcy protection
[5] American Airlines files for bankruptcy