The move of Texas based AMR corp., parent company of American Airlines, American Eagle shook many. It filed chapter 11 ( US bankruptcy code form of bankruptcy that involves reorganization and seeking for time to deal debtors affairs and assets) in New York court on Tuesday 29th November 2011. The company took this action after so many attempts to deal it without bankruptcy.
American Airlines one of the major airlines in America out-shined after 9/11 attack. Most of the airlines tasted its affect, indeed, aviation industry is one of the most affected industry after 9/11 attack. In fact, American Airlines fell from its perch being largest airline to number 3 after competitors strategies such as mergers.
The chief executive of AMR corp. Gerard Arpey who deliberately retired from the company after bankruptcy, who struggled a lot to avoid this move. Thomas Horton, president of AMR corporation said that "The world changed around us " makes it clear that company in a position that it is no way to sustain and compete with competitors.
Employees of American Airlines are the most affected group after this move. Many employees wages and pensions are in stake. Company planning to cut down the cost of employee wages, pension and leasing charges. Company is still hoping that it could emerge from chapter 11 within one and half year.
But, nearly 80,000 american employees are completely panic and flight attendants are not at all feeling excitement of sky travelling after company's action.
However, people who reserved their holiday travels through American Airlines are not going to affected much and experts are saying that their miles are also safe and I think it is good to redeem asap.
Another glory and pride of America diminished and shrinking American economy got another suffering. Let's hope for the end of dark days....
