Despite Its Bankruptcy, American Airlines Continues Its Activity. Chapter 11 Bankruptcy technical has become a must for the large U.S. airlines. One of the few to have escaped so far, the parent of American Airlines (AMR), was resolved yesterday to place themselves under Chapter 11 in order to better negotiate its restructuring and accelerate its deleveraging. Having recorded a loss of 982 million dollars over nine months and have seen her fall by over 79% since January, the third U.S. airline (behind United and Continental Airlines Delta) is fixed now for priority to reduce its cost structure. With a debt of US $ 29.6 billion to US $ 24.7 billion of assets (against a debt of US $ 14 billion for rival Delta Airlines), American Airlines put on this transitional phase to accelerate weight loss and get a free hand in the renegotiation of collective agreements.
“Since its restructuring under Chapter 11, AMR’s main competitors have all achieved cost structures lower than ours,” pleads the CFO of American Airlines, Isabella Goren, in the application filed in bankruptcy court of Bankruptcy in Manhattan. The company says it will continue to operate “normally” for the duration of the procedure, although it plans to slightly reduce its flight plans. In addition to the resignation of its CEO, Gerard Arpey, replaced by the chairman of AMR, Thomas W. Horton, the company also announced the postponement of the demerger of its American Eagle regional airline, originally scheduled for early 2012.
“Get a competitive cost structure remains an absolute imperative in this process and with this objective, we will reopen negotiations with our unions to reduce costs of employment,” said Thomas W. Horton. With a total workforce of 78,000 employees (to 240,000 passengers per day), AMR fell into the red for three years (including a loss of US $ 471 million in 2010).
World’s number one airline until 2008, American Airlines was previously the last great American who managed to escape in Chapter 11 since the attacks of September 11, 2001, the last date of bankruptcy in a large company is that of Delta Airlines in 2005.
In July, American announced an unprecedented order of 460 aircraft (260 to 200 Airbus and Boeing) designed to renovate its fleet and reduce its fuel bill. The command is rock solid assured Thomas Horton. But aircraft deliveries will be staggered between 2013 and 2022. American Airlines is a partner of IAG (British Airways, Iberia) in the North Atlantic, where the three joint venture companies operate from the beginning of the year.