me myself and fly

AMR CORP. FILES BANKRUPTCY IN NEW YORK
AMR, HOLDING COMPANY FOR AMERICAN AIRLINES, FILES CHAPTER 11
AMR COPR. LISTS DEBTS OF $29.5 BILLION IN BANKRUPTCY FILING
AMR HAS $4.1B IN CASH
AMR TO START FURTHER TALKS WITH UNION TO CUT LABOR COSTS
AMR NAMES HORTON CHAIRMAN, CEO

FORT WORTH, Texas, Nov. 29, 2011 /PRNewswire/ -- AMR Corporation ("the Company"), the parent company of American Airlines, Inc. ("American") and AMR Eagle Holding Corporation ("American Eagle"), announced that in order 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 and certain of its U.S.-based subsidiaries (including American and American Eagle), today filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

AMR's Board of Directors determined that a Chapter 11 reorganization is in the best interest of the Company and its stakeholders. Just as with the Company's major airline competitors in recent years, 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.

American Airlines and American Eagle are operating normal flight schedules today, and their reservations, customer service, AAdvantage® program, Admirals Clubs and all other operations are conducting business as usual. Likewise, throughout the Chapter 11 process, American and American Eagle expect to continue to:

Provide safe and reliable service;
Fly normal schedules;
Honor tickets and reservations, and make exchanges and refunds as usual;
Fully maintain AAdvantage frequent flyer and other customer service programs, and ensure all AAdvantage miles and elites status earned by members remain secure and intact;
Provide Admirals Club access and similar amenities to members and eligible customers;
Remain an integral member of the oneworld® alliance, of which American is a founding member, and continue its codeshare partnerships;
Provide employee wages, healthcare coverage, vacation, and other benefits, without interruption; and
Pay suppliers for goods and services received during the reorganization process.

These filings have no direct legal impact on American's operations outside the United States.

American is filing motions today with the Court seeking interim relief that will ensure the Company's continued ability to conduct normal operations, including the ability to:

Provide employee wages, healthcare coverage, vacation, and other benefits without interruption;
Honor pre-petition obligations to customers and continue customer programs including American's AAdvantage frequent flyer program;
Pay for fuel under existing fuel supply contracts, and honor existing fuel supply, distribution and storage agreements; and
Assume and honor contracts relating to interline agreements with other airlines.

As announced separately today, the Board of Directors of AMR Corporation appointed Horton Chairman and Chief Executive Officer of the Company, succeeding Gerard Arpey, who informed the Board of his decision to retire. Horton will also succeed Arpey as Chairman and Chief Executive Officer of American Airlines and will retain the title of President.

http://aa.mediaroom.com/index.php?s=43&item=3397

ukgooner

Beat me to it. I dont think it is OT - mainly because One World seems to have quite a few airlines in trouble. Is this compatible with the 'Quality' image that the alliance is supposed to have?

On the other hand AA has never done chapter 11 unlike every other carrier, so will give it a chance to restructure its costs and become as strong as the others...

ardboe

Will USairways see this as a chance to merge?

ian001

Below is the information page for AA customers and suppliers:

http://www.aa.com/i18n/information/r...=restructuring

Oneworld has also issued a press release confirming membership will continue as previously.

sonofzeus

No. 120 on my ignore list.

Globaliser

And this long-mooted plan is therefore basically just AA's go at levelling the playing field. In the US airline business, staying out of bankruptcy by running your business well simply saddles you with higher costs than your bankrupt competitors'.

If you ever want to design a system that rewards poor stewardship and penalises prudent management, Chapter 11 would be a good model.

OPebble

http://www.bbc.co.uk/news/business-15935206

Ooops sorry didn't notice that this was already posted.

BAGoldBoy

Hope that this doesn't affect our ability to construct TP runs at Ł1.25 a point

daiseee

likely more DEQM promos etc... hopefully this is a good thing!

ejh25

Here's a reassuring statement made by AA.com specifically about the AAdvantage prorgram.

You never know but if I were a betting man, I'd bet that the program remains in place and unchanged.

BA or bust

I am continuously amazed by Chapter 11. How is it possible that in the most capitalist country in the world where it is all about 'survival of the fittest' that such a mechanism can exist for a company to avoid going bust.

As far as understand there is nothing directly comparable in other countries... or if there is..... it is effectively state aid... and other countries (including the old US of A) complain vociferously .

Man_Utd_Fan

Why did they file in NYC? Being that they are from TX why not file there? I think I may have skipped that day when we learned about where to file chapter 11 in my college biz. law class

ComputerCommuter

agreed! the US government is protecting it's own at the expense of a true free market economy. Something they tell other countries they should have ... among other things like free speech and democratic governments that don't torture prisoners.....

Jenbel

Someone on the AA board said NYC is very debtor friendly. Jurisdiction shopping then?

Lucifer UK

Listing is in New York along with most specialist debt restructuring advisors and lawyers. This is all about forcing labour contract renegotiation, which is now extremely above market as they have never fallen into C11 previously compared to the competition