Breaking from The Wall Street Journal and American Airlines itself, AMR – the holding company of American Airlines and American Eagle has filed for Chapter 11 Bankruptcy Protection.
Quickly reading it, AMR is doing this to restructure its costs and debt to assure it’s long term survival, and thus, has filed Chapter 11.
AMR intends to operate all services through the protection, protecting AAdvantage, and has $4.1 Billion in the cash pile.
AMR States that they intend to:
- Provide safe and reliable service;
- Fly normal schedules;
- Honor tickets and reservations, and make exchanges and refunds as usual;
- Fully maintain 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 its codeshare partnerships;
- Provide employee wages, healthcare coverage, vacation, and other benefits, without interruption; and
- Pay suppliers for goods and services received during the reorganization process.
Expect a LOT more on this later.
The Release is at http://aa.mediaroom.com/index.php?s=43&item=3397