Home » Aviation Headlines (discontinued) » American Airlines files for Chapter 11 bankruptcy protection
Published on 29th November 2011 by Darryl Morrell, 1692 views
The owner of American Airlines today filed for bankruptcy protection. AMR Corp, American`s parent organisation has filed for Chapter 11 protection in order to restructure it`s mounting debts.
The airline said it wanted to "achieve a cost and debt structure that would still be competitive and assure its long-term viability" in the industry.
AMR has stated that the airlines within the group which includes American Eagle will continue to operate as near to normal as possible and would honour all tickets and bookings and operate normal flight schedules during its bankruptcy process.
Last month, American reported a third-quarter loss of $162 million (£103.8), which it blamed on soaring fuel costs and other economic problems.
The carrier is the final major US airline to seek court protection from creditors, after other major US carriers, including United Continental Airlines and Delta Air Lines did so in the aftermath of the 9/11 twin tower attacks.