American Airlines Parent. Files for Bankruptcy Protection

[Guest]

Dont be alarmed. They have filed for Bankrupcy protection (Chapter 11), not for bankrupcy. This is fairly standard among US corporations, and American is the last of the big carriers to enter Chapter 11. it is protection against going out of business. General Motors has also been through this in recent years and you can still buy a Vauxhall, not that you'd want to.

[johnb]

To put it in perspective, this is from the BBC News report:-

It was the only one of the major US airlines operating international routes not to file for bankruptcy after the September 11th terrorist attacks.

Its competitors have successfully used bankruptcy to restructure their labour contracts and cut costs.

See more...

[cloud]

Originally Posted by Funkymum

OMG 15 days til we fly with American Airlines, we had 15 days to fly with XL airways when they went bust

See more...

Over 50days till we fly! love American the nice people there always let me fly bulkhead seats! hope my airmiles are going to be ok too!

[walt4it]

The earlier quote from BBC by johnb is one that everone should bare in mind.
Other US airlines have done tis before and they use it as a means of giving the company protection whilst they attempt to restructure. It appears strange but American law allows for this whilst UK law does not. As a result, they should become a more robust company... as a non economist I will also add the word apparently

This is huge , huge company that has never addressed the notion of 'low cost carriers' and never sought to cut costs as so many other world wide carriers have.

Will watch US news channels tonight to see their reaction with interest.

[Guest]

Originally Posted by cloud

Over 50days till we fly! love American the nice people there always let me fly bulkhead seats! hope my airmiles are going to be ok too!

See more...

I got a email from them this AM saying Airmiles were safe

[Guest]

Booked four flights with these guys about a month ago, hope we're still ok

[DIBBadmin]

This thread has been automatically closed as it has not been posted on in 365 days.