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:
â€œThis was a difficult decision, but it is the necessary and right path for us to take â€“ and take now â€“ to become a more efficient, financially stronger, and competitive airline.
â€œWe 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.
â€œBut 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."READ FULL CNNMONEY.COM STORY
Top Goldman Sachs representatives - including CEO Lloyd Blankfein - attempted to deflect criticism Tuesday as they faced a blistering cross-examination from lawmakers about the firm's role in the financial crisis.
For more than eight hours, members of a Senate panel skewered current and former executives at Wall Street's top firm with pointed questions and criticisms in an effort to just how Goldman had positioned itself as the nation's housing market started to come unraveled in 2007.
The economy showed modest signs of life in recent weeks, the Federal Reserve said Wednesday in its latest summary of regional economic conditions.
Economic activity expanded "somewhat" in 11 of the central bank's 12 districts, according to the latest edition of the Fed's Beige Book, released Wednesday. St. Louis was the exception, reporting "softened" economic conditions.