NYCAviation:
Quote:
American Airlines’ Parent Company Files for Bankruptcy
AMR Company, the parent company of American Airlines and American Eagle, announced on Tuesday that it has filed for Chapter 11 bankruptcy.
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NYCAviation:
Quote:
American Airlines’ Parent Company Files for Bankruptcy
AMR Company, the parent company of American Airlines and American Eagle, announced on Tuesday that it has filed for Chapter 11 bankruptcy.
[Click to Read Full Article]
It was an interesting morning to be flying on American from Terminal 8 this morning, needless to say everyone had their eyes on the tv screens although none of the staff seemed to be phased by it.
I was scheduled to take an American fly back next month, and changed it to a JetBlue flight. Hey, you never know what might happen and don't want to get stuck.
There will be limited to zero operational impact to American's operation in terms of flight disruption. American has over 4 billion dollars in cash on hand with which they are now going to restructure. This bankruptcy is more of a "righting of the ship" so to speak rather a sign that they are going the way of PanAm. Not remotely. This will bring their cost structure in line with what they need to prosper. In hind sight, they probably should have gone through this cycle when everyone else did and this probably would not be an issue for them right now. As soon as APA reached an agreement I saw the writing on the wall though. I knew in my hear that the second the pilots "got what they wanted" American was going to nullify it anyway with a BK .
Ryan is right, they will probably won't have any flight disruption. Once they can get through this and start to modernize their fleet they will be much better off and could probably avoid merging with someone.