American Airlines files for bankruptcy

[Javaman]

http://www.cbsnews.com/8301-500202_162-57332686/american-airlines-files-for-bankruptcy/?tag=stack

DALLAS - American Airlines' parent company, AMR, filed for Chapter 11 bankruptcy this morning.

The Texas-based AMR Corporation, the parent company of American Airlines and American Eagle, announced that the company and certain of its U.S.-based subsidiaries (including both carriers) today filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York, "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."

It says the move is in the best interest of both companies and its shareholders.

The nation's third largest airline also said its CEO Gerard Arpey will step down. He's being replaced by Thomas Horton, currently the company's president.


more at link...

[YellowRubberDuckie]

1. I thought they were making billions off charging for baggage.

Sounds like they are going through some serious mismanagement of money.

[RC]

2. Check the perks, golden parachutes and bonuses of upper management,

Are their new yachts paid for yet? What about their private jets?

[hobbit709]

3. Sounds like they want to bust some union contracts and pension funds.

[Huey P. Long]

5. SOP...standard operating procedure.

[Populist_Prole]

6. Bingo. Other airlines have already done the same

[The Genealogist]

7. This is my impression as well.

Can we please have a solid, nationwide train system back?! If only Amtrak covered more of the country!

[ProfessorGAC]

4. Again?

There can be no other explanation other than mismanagment and a bloated executive staff. And don't anybody give me the "union contracts" nonsense. The union workers are making less per dollar of revenue then they were 20 years ago.

Too many useless VP's i think. If the VP is good and creates value, keep 'em. If they don't, see ya.