American Airlines files for Ch. 11 Bankruptcy

AMR. the parent company of American Airlines, has filed for Chapter 11 bankruptcy protection. The company expects normal operations while it reorganizes.

This is very similar to the process just about every major U.S. airlines has gone through in the past few years.

The airline also put out a statement on its AAdvantage Facebook page assuring customers their FF miles are safe. That makes me happy as I still have nearly 500k miles with them.

Comments

[Alan B]

Note that within the last few months, AMR announced that they had placed a very large order for new planes, several types, common characteristic being better fuel economy, the volatile price of jet fuel being a variable hard to control for any airline. But, the sector most likely to be hit by the bankruptcy will be American Airlines employees at all levels, perhaps to include substantial alterations to current union contracts, not to mention the integrity and future handling of pension plans. As noted the other day, rather clearly airlines prospectively will avoid any and all routes that require smaller aircraft, which use up to 150% more fuel per seat mile.