American, parent, subs file Chapter 11

It’s done: American is the last legacy carrier to file for bankruptcy. Press releases here, here and here.

Our discussion last week of what a bankruptcy would mean to orders is here.

6 Comments on “American, parent, subs file Chapter 11

  1. Less than a month before Christmas! Was it that urgent? Around this time of the year a lot of people travel and the airplanes are often full. Why not wait until after the Holidays? It will not only hurt the employees, but it will also be a source of additional stress for the travellers. The service will deteriorate at the worst possible time. And the employee morale will be more affected than at any other time of the year.

  2. This aviationow article makes very clear that AA is going to use Ch 11 to get rid of its most inefficient planes much more quickly than it has been able to do to date by cancelling or heavily modifying leases and purchase money contracts, and getting its new B and A planes ASAP. The article about B’s faltering was just plane (pun) stupid. The whole point is to keep their new agreements with A & B, not torpedo them.

    http://www.aviationweek.com/aw/generic/story.jsp?id=news/avd/2011/11/30/02.xml&headline=Major%20Changes%20Planned%20For%20AMR%27s%20Fleet&channel=comm

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