http://www.bbc.co.uk/news/business-15935206

Just read it on a Dutch news site. I'm surprised, and yet I'm not surprised. I'm a bit saddened, but they will probably get out of it again.

I just saw this too. Hope they land on their feet after this all shakes out.

They should've restructured in the wake of 9/11 like all the other airlines did.

I don't get it. Didn't they just order like 200 Boeings and 250 Airbuses or something like that?Anyway, I really hope they overcome all this.

I don't get it. Didn't they just order like 200 Boeings and 250 Airbuses or something like that?Anyway, I really hope they overcome all this.

It is called being creative with accounting. They have a plan behind doors that no one on here knows about. Chapter 11 doesn't mean the end of American Airlines.Cheers

Note that AMR Corp (stock trades on NYSE) and wholly owned subsidiaries American Airlines inc, American Eagle Airlines, and Executive Airlines all entered voluntary chapter 11 bankruptcy today. As far as orders for future delivery of aircraft:Even with the risk of order trimming, American Airlines in its press statement claims they have the cash to assure vendors and suppliers. "The Company has approximately $4.1 billion in unrestricted cash and short-term investments. This cash, is anticipated to be more than sufficient to assure that its vendors, suppliers and other business partners will be paid timely and in full for goods and services provided during the Chapter 11 process in accordance with customary terms."

scott s.

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Sounds good. I can't picture the aviation world without AACan someone explain in layman's terms what does filing for Chapter 11 imply? Is it some sort of bail out?

https://www.facebook.com/pages/Jack-The-Cat-is-Lost-in-AA-Baggage-at-JFK/143108332445793Because of that.

What was that quote Warren Buffet made about aviation, something like a Capitalist should have shot down Wilbur and Orville Wright...

It is called being creative with accounting. They have a plan behind doors that no one on here knows about. Chapter 11 doesn't mean the end of American Airlines.Cheers

Exactly. This wouldn't be the first nor will it be the last time a legacy carrier files for C.11.

Note that AMR Corp (stock trades on NYSE) and wholly owned subsidiaries American Airlines inc, American Eagle Airlines, and Executive Airlines all entered voluntary chapter 11 bankruptcy today. As far as orders for future delivery of aircraft:Even with the risk of order trimming, American Airlines in its press statement claims they have the cash to assure vendors and suppliers. "The Company has approximately $4.1 billion in unrestricted cash and short-term investments. This cash, is anticipated to be more than sufficient to assure that its vendors, suppliers and other business partners will be paid timely and in full for goods and services provided during the Chapter 11 process in accordance with customary terms."

scott s.

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^^^

The Strike at Northwest Airlines: Where Is Labor Going?http://www.kclabor.org/strike_at_northwest_airlines.htm

This is sad news for a very proud company that is steeped in aviation heritage and history. Their iconic ex-CEO Robert Crandall has remarked that he never imagined American would take this route. This company was the first airline to pioneer non-stop trans con travel utilizing the B707, develop the SABRE reservation system, deploy the American AAdvantage customer loyalty program (an industry first) among many others. I had admired AA for doing the honorable thing by standing by its financial commitment to partners, suppliers, vendors and employees while other airlines were using the CH11 bankruptcy laws to bludgeon their competitors. They will find their path though this mess, but whether they ever reach previous levels of industry prominence is questionable.

Southwest and JetBlue continue to lead the industry in both profitability and popularity. Unlike the so-called "major" airlines, they didn't jump on the fee bandwagon with luggage charges, and they instead use their bags-fly-free policy to gain even better standing among customers.I think the union issue is a big difference between these upstarts and the legacy carriers. Besides that, though, they are probably stuck with some older aircraft and unprofitable routes, and most likely a bloated and outdated management structure. It's entirely possible that they will use Chapter 11 the way it's supposed to be used, to negotiate their way back to profitability. What I'd like to see is an admission by some of the legacy carriers that SWA and JBU are doing something right, and it's time for them to get on board rather than continuing to gouge the customers.

When your competition has ditched the cost of paying for employee pensions, it makes it darned hard to compete while you're still paying for them. I think this is mostly about that issue. Most of the guys I know working over there have been expecting this for years now, and from what I hear nearly every pilot eligible for early-retirement (age 55 I believe) has taken the lump-sum when first-eligible and run away with a huge sigh of relief. If this is like the reorganizations at United and Delta, the defined benefit pension plan is toast...they'll turn over the assets in the plan now to the PBGC, and employees will get a much-reduced pension at age 65 from PBGC (maybe $45K/yr instead of $120K/yr for a retiring international captain).