Tuesday, November 29, 2011
American Airlines Files for Bankruptcy Protection
American Airlines, and its parent company AMR, filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court on Tuesday.
The company made the move to "become a more efficient, financially stronger, and competitive airline," Thomas Horton, Chairman and CEO of AMR and American Airlines said in a release. As part of the transition, former Chairman and CEO Gerard Arpey will retire, and will be succeeded by Horton.
The Texas-based airline plans on "conducting normal business operations" while it restructures its debt and other obligations, it said in a release. To that end, flights are expected to continue as normal on Tuesday, while the reservations and customer service departments will conduct business as usual as well.
AMR posted a third-quarter loss of $162 million in October, and currently has $4.1 billion in cash and unrestricted investments on hand. Shares plunged 58% to 64 cents in pre-market trading.