American files for Chapter 11

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American Airlines parent AMR Corporation has filed for Chapter 11 protection in a move designed to enable it to restructure its costs and debts to make it more competitive.
The Chapter 11 process enables American to continue conducting normal business operations while they restructure their debt, costs and other obligations.
American Airlines and American Eagle said they were operating normal flight schedules today (29th November), and their reservations, customer service, AAdvantage programme, Admirals Clubs and all other operations were conducting business as usual.
Throughout the Chapter 11 process, American expects to remain an integral member of the oneworld alliance and continue its codeshare partnerships, as well as continuing to fly normal schedules.
• AMR chief Thomas W Horton said: “We must address our cost structure, including labour costs, to enable us to capitalise on these foundational strengths and secure our future.
• “Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable given the accelerating impact of global economic uncertainty and resulting revenue instability, volatile and rising fuel prices, and intensifying competitive challenges.”

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