Originally Posted by
Often1
AA's business model clearly doesn't work and that will change. Nobody can say for sure what the impact of Chapter 11 will be on day-to-day, including AAdvantage, but for the moment AA says it remains the same. Up to the Bankruptcy Court to decide.
The big difference will likely be, as stated by AA, that some service will be cut on unprofitable routes. Some routes may be dumped. Remember, full aircraft doesn't equate to profitable flight (100% full Y pax makes a lot of $, 100% in deep discount loses a lot of $).
Major impact then will be that further capacity cuts will mean fewer seats on some routes, meaning fewer F seats, fewer award seats and fewer deep discount seats. So, miles may accumulate as may status, but the opportunities to use the miles may dissipate.
An airline doesn't need to file Ch 11 to cut routes. AA can do that (and has done it) whenever it wants.
There will be no impact on any products and services, and the bankruptcy court will fully agree with keeping these intact (even adding to them), because its interest is seeing AMR come out of the process stronger, able to repay its creditors as much as possible. Keeping customers satisfied and secure is an important part of that equation.
The purpose of filing Ch 11 is to cut long-term debt obligations and to invalidate collective bargaining agreements to negotiate for terms more favorable to the company.