American Airlines bankruptcy: ‘Business as usual’ for passengers
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The parent company for American Airlines, the nation’s third largest carrier, filed for bankruptcy, citing high labor costs and a volatile economy.
American Airlines, the largest carrier at Los Angeles International Airport, sought to assure passengers that the filing would not affect their travel plans, saying all tickets, reservations and reward points would be honored.
‘American Airlines remains open for business,’ said Craig Kreeger, the airline’s vice president for customer experience. ‘It’s business as usual.’
Until it filed for Chapter 11 protection Tuesday, AMR Corp. represented the last major network carrier in the U.S. to avoid bankruptcy in the tumultuous decade since the Sept. 11, 2001, terrorist attacks.
Many of American Airlines’ competitors that renegotiated labor contracts and debts in the bankruptcy process have reported strong profit margins in the past few years.
But AMR posted a net loss of $884 million in the nine months that ended Sept. 30, more than double the loss of the prior year’s nine-month period.
The board of directors of AMR Corp. also announced Tuesday that it had appointed Thomas W. Horton chairman and chief executive officer of the company, succeeding Gerard Arpey, who informed the board of his plans to retire.
Arpey, 53, was chief executive officer since 2003 and chairman since 2004.
-- Hugo Martin