from the article: "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."
the article says no interruptions in service, reservations honored, refunds still being issued.
i wonder about the large order for new planes that they recently made?
INFORMATION ABOUT AMERICAN'S CHAPTER 11 REORGANIZATION
American Airlines and American Eagle continuing normal operations following Chapter 11 filing
On November 29, 2011, AMR Corporation, the parent company of American Airlines and American Eagle, and certain of our U.S.-based subsidiaries (including American and American Eagle) filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. We took this action in order to achieve a cost and debt structure that is industry competitive and thereby assure our long-term viability and ability to continue delivering a world-class travel experience for customers.
American Airlines and American Eagle are operating normal flight schedules, and our reservations, customer service, AAdvantage program, Admirals Clubs and all other operations are conducting business as usual. Likewise, throughout the Chapter 11 process, we expect to continue to:
Provide safe and reliable service;
Fly normal schedules;
Honor tickets and reservations, and make exchanges and refunds as usual;
Fully maintain our AAdvantage frequent - flyer and other customer service programs, and ensure all AAdvantage miles and elites status earned by members remain secure and intact;
Provide Admirals Club access and similar amenities to members and eligible customers;
Remain an integral member of the oneworld alliance, of which American is a founding member, and continue our codeshare partnerships;
Provide employee wages, healthcare coverage, vacation, and other benefits, without interruption;
Pay suppliers for goods and services received during the reorganization process.
These filings have no direct legal impact on American's operations outside the United States.
American is committed to continuing to provide our customers with the excellent service and safe, reliable travel experience they expect from us.
I find it truly amazing how corporate incompetence gets rewarded by shafting creditors and starting with a clean slate as though nothing happened. Perhaps the entire C-suite at AA should be held accountable to repay their entire compensation for the past 5 years to the same percentage level of debt that gets wiped off their books . . . maybe they won't make such bad decisions to get into trouble like this next time!
And that, my friends comes from a capitalist that is closer to being a Republican (if I were American) . . . as a business owner here in Canada, I am not sure I would be afforded the same opportunity . . .
it isn't a question of competence. American simply didn't screw their employees when all of the other legacy airlines did a few years ago. They may try to reduce the cost of the new aircraft on order, but they need those airplanes and they will end up taking most, if not all, of them.