Tuesday, November 29, 2011

American Airlines Files For Bankruptcy - 29th Nov 2011

American Airlines has filed for bankruptcy, its parent company has announced.

AMR Corporation made a voluntary filing for Chapter 11 bankruptcy reorganisation, but said it expected to continue operations normally.

American's chairman and chief executive Gerard Arpey also stepped down, and AMR's board of directors named AMR chairman and CEO Thomas Horton as his replacement.

The airline said in a statement: "American took this action in order to achieve a cost and debt structure that is competitive in the airline industry so that it can continue delivering world-class travel experience for its customers."

The airline, which serves 260 cities through an extensive network that reaches 50 countries and territories, said its flights will operate normally.

The company will honour tickets and reservations as usual, and that its code-shares and frequent flyer program are not affected.

"We are committed to maintaining a strong presence in worldwide markets. I am confident American will emerge even stronger as a global leader known for excellence and innovation, a travel partner customers seek out, and a carrier that serves communities throughout the world," said Mr Horton, who will also retain his post as AMR chairman. Read More