Source: AP / CBS News
DALLAS – American Airlines, the nation’s third largest airline, has filed for Chapter 11 bankruptcy this morning.
The Texas-based AMR Corporation, the parent company of American Airlines and American Eagle, announced that the company and certain of its U.S.-based subsidiaries (including both carriers) today filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York, “in order to achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers.”
It says the move is in the best interest of both companies and its shareholders.
American also said its CEO Gerard Arpey will step down. He’s being replaced by Thomas Horton, currently the company’s president.
The Chapter 11 reorganization process would enable to airline to continue normal business operations.
To read this article in its entirety visit CBS News.
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