November 29th, 2011
07:13 AM ET

American Airlines parent company files for bankruptcy protection

American Airlines parent company AMR has filed for Chapter 11 bankruptcy protection, the company said Tuesday.

AMR said American Airlines, American Eagle and all other subsidiaries will honor all tickets and reservations and operate normal flight schedules during the bankruptcy filing process, using its $4.1 billion in cash.

Thomas W. Horton, Chairman, Chief Executive Officer and President of AMR and American Airlines said the following in a statement released to the press:

“This was a difficult decision, but it is the necessary and right path for us to take – and take now – to become a more efficient, financially stronger, and competitive airline.

“We have met our challenges head on, taking all possible action to secure our long-term position. In recent years, even as the airline industry faced unprecedented challenges, American strengthened our domestic and global network; fortified our alliances with the best partners around the world; launched a transformational fleet deal that will give American the youngest and most efficient fleet in the industry; and invested in our product, service and technology to build a world class customer experience.

“But as we have made clear with increasing urgency in recent weeks, we must address our cost structure, including labor costs, to enable us to capitalize on these foundational strengths and secure our future. Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable given the accelerating impact of global economic uncertainty and resulting revenue instability, volatile and rising fuel prices, and intensifying competitive challenges."

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soundoff (10 Responses)
  1. michaelfury

    http://michaelfury.wordpress.com/2008/08/16/black-box/

    November 29, 2011 at 7:25 am | Report abuse |
  2. Joey Isotta-Fraschini

    In this economy, this corporation's action may be like artists' farewell recitals: the first of a series.

    November 29, 2011 at 7:55 am | Report abuse |
  3. Wicked

    All those people out of a job. Christ. Guess they'll have to put their thinking caps on to make a job for themselves somehow. Good luck with that.

    November 29, 2011 at 8:16 am | Report abuse |
  4. Wicked

    My mom retired from American. Hope her pension isn't affected. I don't want her living with me, lol!

    November 29, 2011 at 8:18 am | Report abuse |
  5. Emma Sullivan

    Kansas Gov. Sam Brownback SUCKS!

    November 29, 2011 at 8:38 am | Report abuse |
  6. chrissy

    @ emma, lol we heard that, we also heard he blowsalot! And now here we go, the 2nd recession! Do any of you think the government will take notice now?

    November 29, 2011 at 9:09 am | Report abuse |
  7. bobcat ( in a hat )

    Oh no. Amerians parents are breaking up. What will happen with the chidren ?

    November 29, 2011 at 2:38 pm | Report abuse |
    • BOMBO

      All the little planes will need to fly on their own, because they can't rely on the big planes any more.

      November 29, 2011 at 4:11 pm | Report abuse |
  8. bobcat ( in a hat )

    @chrissy
    I'm sure the government has noticed. At this point they really don't seem to care about anything but saving their jobs, and their # 1 priority of getting president Obabma out of the white house. Be damned the people.

    November 29, 2011 at 2:42 pm | Report abuse |
  9. CRYBABY

    QUIT WHINNING SHT GETS OLD

    November 29, 2011 at 4:30 pm | Report abuse |