South Carolina Criminal Defense Lawyers
CBS is reporting that American Airlines’ parent company, AMR, filed for Chapter 11 bankruptcy this morning.
The Texas-based Corporation is the parent company of American Airlines and American Eagle. They released a statement saying the corporation and some of its U.S.-based subsidiaries including AA and American Eagle filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York:
“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.”
It says the Chapter 11 move is in the best interest of both companies and all its shareholders.
American Airlines said the Chapter 11 move will allow the company to continue operating under normal flight schedules, honoring tickets and reservations as usual, and making normal refunds and exchanges.
“American’s customers are always our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us,” said Thomas W. Horton, Chairman, Chief Executive Officer and President of AMR and American Airlines.
American was the only major U.S.airline to lose money last year and lost $868 million during the first nine months of this year.
American was the only major U.S.airline that did not file for bankruptcy protection after the September 11th terrorist attacks.
By: Pete Strom, South Carolina Personal Injury and Criminal Defense Lawyer