What Does AA Bankruptcy Mean for Company, Fliers? (newsy-allvideos)
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(Image source: American Airlines)
**BY MALLORY PERRYMAN**
**ANCHOR MEGAN MURPHY**
Sky high labor costs–rising fuel prices–and mounding debt.
It’s enough to plunge American Airlines’ parent company AMR into bankruptcy.
Here’s Fox News.
**”American Airlines has just filed for Chapter 11 bankruptcy and plans to
begin reorganization immediately. Moments after the news broke, we learned
that CEO Gerard Arpie has agreed to step down. He’ll be replaced by the
company president Thomas Horton… Bankruptcy blamed on the slow economy and
reduced demand for seats.”**
For the airline– Chapter 11 means it can seek court protection to reduce
costs and debt. For the consumer– CNN explains– it doesn’t mean much of
anything.
**Richard Quest: “Yeah, look, you know, it’s rare that I put my neck on the
block. But I’m going to do it quite clearly. There is no danger that American
Airlines is going to stop flying. Let’s be absolutely clear… Horton told me he
hopes that Chapter 11 will last less time than the average being 16 months.”**
According to the Economist– bankruptcy is pretty run-of-the-mill in the
airline industry- and American’s parent company AMR is one of the few that has
historically resisted getting help from bankruptcy laws.
**”Network …
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