November 29, 2011
American Airlines, the world’s fourth largest airline, has filed for Chapter 11 bankruptcy protection.
The decision comes as the airline tries to “achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers,” the company said in a statement.
AMR, the airline’s parent company, said American Airlines, American Eagle and all its other subsidiaries would honour all tickets and reservations and operate normal flight schedules during the bankruptcy filing process.
AA has long been touted as the US airline most likely to go bankrupt as it struggles with high labour costs and weak cash flow. Last month the company reported a third-quarter loss of $162m (£105m), blaming higher fuel costs and unfavourable foreign exchange rates.
This article was posted: Tuesday, November 29, 2011 at 9:34 am