AA parent company AMR Corp files for Ch. 11 Bankruptcy

[zzzhobbes]

AMR Corp American Airlines parent company files for Chapter 11 Bankruptcy to revamp costs and restructure debt. Interested to see if Frequent Flyers are effected or like all other Bankruptcies they have been protected as they can afford to lose any customers

 

[Bundy Bear]

I am a little shocked by the news.


AMR and American Airlines File for Chapter 11 Reorganization to Achieve Industry Competitiveness


American Airlines, American Eagle and All Other Subsidiaries Operating Normal Flight Schedules, Honoring All Tickets and Reservations, Maintaining High Customer Service Levels and AAdvantage Program, and Continuing Employee Pay and Benefits


AMR Has $4.1 Billion in Cash to Ensure Uninterrupted Supply of Goods and Services During Proceedings

 

[cove]

That was inevitable.
I wish Australia had this form of restructuring option available thru Chapter 11.

 

[moa999]

Been likely for a while....
pity the shareholders, pity the staff

but was always going to happen once everyone else did it.

 

[cove]

I hope Qantas is not exposed to a bad debt!

 

[v8Statesman]

Holding several tickets over DEC11/JAN12 on 001 stock. Should I panic?

 

[moa999]

Tickets ok ...

http://www.aa.com/i18n/information/restructuring.jsp?anchorLocation=DirectURL&title=restructuring

and
http://www.aa.com/content/images/restructuring/FlightsandTickets.pdf

 

[thewinchester]

That was inevitable.
I wish Australia had this form of restructuring option available thru Chapter 11.

The closest we have is companies being declared insolvent and entering administration, where they can be rebuilt and restructured from the ground up (the original plan for Ansett).



----
Sent using my Roman era abacus.

 

[holdenvxman]

Holding several tickets over DEC11/JAN12 on 001 stock. Should I panic?

Looks like you will be fine.

 

[cove]

Yes all Australia has is a group of accountants who vacuum up the last of the dollars at $525 an hour plus GST so very few businesses make a comeback from a near death experience of "administration or receivership".

 

[cove]

v8Statesman you will be quite OK. The caterer may be unhappy but the planes will fly.

 

[ricee007]

New Advantage.... Voluntary petition.

American Airlines files voluntary petition | News.com.au

THE parent companies of American Airlines and its regional affiliate American Eagle are filing for bankruptcy protection.

Read more: American Airlines files voluntary petition | News.com.au
​

 

[v8Statesman]

v8Statesman you will be quite OK. The caterer may be unhappy but the planes will fly.

I hope you are right. I have been toying with the idea of a cheap KUPP LAX-PTY. Not sure if I should now. Ironically, that means less income from them, exacerbating the issue

 

[Blackadder]

You have nothing to worry about, the planes will still be flying at usual (prehaps some route cuts here and there) but like the others that have gone through Chapter 11 proceedings before, they come out the other side still operational and solvent.

 

[v8Statesman]

A Fluff piece, but worth watching, is only for the plane shots

Chromeless Video Player Widescreen

 

[smit0847]

Yes all Australia has is a group of accountants who vacuum up the last of the dollars at $525 an hour plus GST so very few businesses make a comeback from a near death experience of "administration or receivership".

Completely agree!

 

[el_rooto]

I was hoping for the headline "AAmerican files for bAAnkrupcy."

 

[serfty]

AA are basically running the Chapter 11 Bankruptcy themselves and will operate normally. Those most affected will be employees and some creditors.

Going by previous Ch 11 filings of other USA legacy carriers, any changes perceptible to the customer are highly unlikely to directly be a result of the filing.

While Creditors and employees will feel some pain, MR and AA will not only carefully protect all products and services to customers, but as soon as the restructuring is effective, they will be able to enhance their product and entice more custom.

AMR's ability to set its debt and operating costs in line with its competition should result in a better airline that will ultimately benefit all associated with the airline (creditors, employees, customers, Alliance partners, etc.).

 

[markis10]

They are certainly letting customers know re the points:

As you may know, on Tuesday, November 29, American Airlines filed for reorganization under Chapter 11. We took this action as part of our efforts to secure our long-term success in delivering the highest standards in air travel. We are committed to meeting your travel needs with outstanding customer service and safety, and it will be business as usual at American throughout our reorganization process. More than 80,000 people at American appreciate your loyalty and look forward to continuing to serve you.

We want to assure you that your AAdvantage[SUP]®[/SUP] miles are secure. The AAdvantage miles that you've earned are yours and will stay yours, subject to usual policies, until you choose to redeem them for a great award with us. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million Miler[SUP]SM[/SUP] program is secure and remains intact. You will continue to earn miles through all our existing AAdvantage participating companies and you will be able to redeem those miles for the same great awards — flights, upgrades, car rentals and hotels just to name a few. And, throughout the coming year, we will be adding even more opportunities to earn miles, as well as new ways to redeem those miles.

American is honoring all tickets and reservations as usual, and making normal refunds and exchanges. And, we intend to maintain a strong presence in domestic and international markets. As we and all airlines routinely do, we will continue to evaluate our operations and service, assuring that our network is as efficient and productive as possible. Additionally, relationships with our oneworld Alliance and other codeshare partners are continuing to provide you with opportunities to earn and redeem miles for travel to hundreds of destinations worldwide, and we are honoring all tickets and reservations for travel on our partner airlines as usual. For information about American's reorganization process, please visit AA.com/restructuring.

Even more importantly, we remain committed to providing a superior customer experience with a focus on delivering what our customers value most — the newest fleet with our upcoming aircraft deliveries, network strength in the important cities of the world and world-class products, service and technology.

American Airlines has a proud history, and we will have a successful future. All of us on the American team thank you for your loyalty and we look forward to welcoming you aboard soon.

 

[Danger]

This whole chapter 11 bankruptcy thing seems akin to calling bar-leez (phonetic spelling, I've no idea if it's even a word) in a kids' game of chassey. From the very, very limited information I have on the process (gleaned basically from here and Flyertalk), for all intents and purposes the process seems to offer protection to a company, probably at creditors' expense, while allowing the company to try to make money.

Article here from CNN and here from SMH.