American Airlines Files for Bankruptcy


American Airlines, the third largest U.S. airline, is filing for bankruptcy in a desperate push to unload massive debt built up by years of rising jet fuel prices and labor struggles.
American was the only major U.S. airline that didn’t file for bankruptcy protection after the 9/11 attacks on New York and Washington D.C.
The last major airline to file for bankruptcy protection was Delta in 2005.
Mark Duell of the UK’s Daily Mail calls American Airlines’ move to bankruptcy protection “a crushing blow to an iconic brand and a frightful symbol of America’s dying economy.”
Read rest of article here.
~Eowyn

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4 responses to “American Airlines Files for Bankruptcy

  1. I am very sad to see American Airlines having to file Chapter 11. However, much can be achieved through the Reorganization process within a Chapter 11 proceeding, to deal with the merits of lawsuits, some frivolous, some not, and other debt structures. I used this airline for ten years to get me to and from places in our country involving my son, who was very ill, who had to be taken to specialists. American Airlines always worked with me in rescheduling flights which was always necessary because of the flexibility required in hospital stays, and so forth. The Bankruptcy Code can help businesses when they are in trouble to help pay off their debts pursuant to a Chapter 11 Plan.

     
  2. They need to get their union goons under control, as they were a big part of this.
    I remember watching Eastern’s union completely destroy that unfortunate airline way back when. It would be a shame to see that happen to American.
    -Dave

     
  3. Got an e-mail from them today saying that my AA miles are safe. [Seriously.] Phew. Glad that that is covered. /sarc off
    DH and I recently talked about donating our miles on several airlines to Soldiers. Now is as good of time as any. Racked ’em up flying back and forth to saudi three or four times a year. And DH still racks ’em up flying back and forth to Israel every other month. The Soldiers can use them more than I can – at the very least, quite a few of them can upgrade to 1st or business class on their trips home. Hopefully someone – a Soldier – will be able to use my AA miles before they are gone.

     

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