Facing the highest labor costs in the industry to date and continued losses, American Airlines and American Eagle’s parent companies filed today for Chapter 11 bankruptcy protection.
AMR Corp. and AMR Eagle Holding Corp. said Tuesday in a statement that the move is “in the best interest of the companies and its shareholders.”
The Chapter 11 process enables American Airlines and American Eagle to continue conducting normal business operations while they restructure their debt, costs and other obligations.
Thomas W. Horton, Chairman and new Chief Executive Officer and President of AMR and American Airlines, said, “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.”
Horton added, “Throughout the restructuring process, as always, our customers remain our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us. We intend to maintain a strong presence in domestic and international markets, including our cornerstones in Dallas/Fort Worth, Chicago, New York, Miami and Los Angeles. As we and all airlines routinely do, we will continue to evaluate our operations and service, assuring that our network is as efficient and productive as possible.”
American Airlines, American Eagle and the AmericanConnection® carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights.
