American Airlines files for Ch. 11 protection
FORT WORTH, TX (AP) — The parent companies of American Airlines and its regional affiliate American Eagle are filing for
Chapter 11 bankruptcy protection.
AMR Corp. and AMR Eagle Holding Corp. said Tuesday that they filed voluntary petitions to reorganize, saying it’s in the best
interest of the companies and its shareholders.
American, which began two daily flights between Wilmington and Chicago-O’Hare this summer, says it sought protection to reduce its costs and debt to remain competitive in the airline industry.
American was the only major US airline that didn’t file for bankruptcy protection after the 2001 terrorist attacks.
American says labor-contract rules force it to spend at least $600 million more than other airlines.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
More: continued here