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    November 29, 2011

American Airlines Files for Bankruptcy Protection

   VOA News
   American Airlines planes sit at a gate at Washington's Ronald Reagan
   National Airport. American Airlines and its parent company are filing
   for bankruptcy protection as they try to cut costs and unload massive
   debt built up by years of high fuel prices and
   Photo: AP
   American Airlines planes sit at a gate at Washington's Ronald Reagan
   National Airport. American Airlines and its parent company are filing
   for bankruptcy protection as they try to cut costs and unload massive
   debt built up by years of high fuel prices and labor struggles,
   November 29, 2011.

   American Airlines' parent company, AMR Corporation, has filed for
   bankruptcy after failing to secure a deal with pilots to cut labor
   costs.
   The nation's third largest airline said Tuesday it sought bankruptcy
   court protection to reduce its costs and debt to competitive levels.
   The airline said normal flight operations will continue during a
   reorganization.
   American had been the only major U.S. airline that had not filed for
   bankruptcy protection. Its main competitors, Delta and United, used
   bankruptcy to scrap costly labor contracts and reduce debts. And both
   have also merged with other companies - Delta buying Northwest and
   United buying Continental.
   In addition to higher labor costs than its rivals, American Airlines
   has also struggled with soaring jet fuel prices.
   In its Chapter 11 bankruptcy filing in a New York court, the company
   listed $24.7 billion in assets and $29.6 billion in debt.
   The Texas-based AMR Corporation also announced the retirement of its
   chairman and CEO Gerard Arpey and named company president Thomas Horton
   as his replacement.