Even though American Airlines’ parent, Forth Worth-based AMR, filed for bankruptcy today, passengers may see no changes in the carrier’s operations.
Every so-called legacy carrier, including United, Delta and Continental, filed for bankruptcy after the 9/11 slump. American did not. The others restructured operations, business deals, employee contracts and benefits, and emerged making money. Not American.
Now, AMR’s new CEO, Tom Horton, says it’s time. He said in a statement that American’s cost disadvantage compared to competitors is untenable. Plus, the economy, revenue and fuel costs are uncertain and unstable.