DALLAS, USA – AMR, the parent company of American Airlines and American Eagle, said on Tuesday that it had filed for bankruptcy protection in an effort to reduce labour costs as well as reschedule a heavy debt burden.
In recent years American and other major US airlines have had difficulty in union negotiations when collective bargaining failed to obtain wage and benefits concessions. One by one, with the exception of American, each airline filed for chapter 11 bankruptcy protection and planned reorganization. In each case the US federal courts have forced concessions on the unions.
Now American, under new CEO Thomas Horton, has followed the same route, saying they need to restore flexibility and profitability in their operations.
American Airlines is one of the principal carriers for foreign tourists and residents traveling between the US and the Caribbean.
The airline has announced that there will be no immediate disruption or anticipated changes in service.
