BTN Europe presents an overview of business travel and MICE predictions for this year
Thursday 9th September, JW Marriott Grosvenor House
ExCeL London - 30 Sep - 01 Oct 2021
18 October 2021 - Virtual
American Airlines (AA) and its parent company AMR have filed for bankruptcy protection.
Under the US bankruptcy code, Chapter 11 allows AA to reorganise its finances while continuing to operate a normal flight schedule.
AMR said it has $4.1 billion in cash to ensure an “uninterrupted supply of goods and services during proceedings”.
Gerard Arpey has decided to retire amid the news, and has been replaced as CEO by Thomas Horton.
Horton said filing for Chapter 11 was a “difficult decision”.
“It is the necessary and right path for us to take – and take now – to become a more efficient, financially stronger, and competitive airline,” he said.
“We have met our challenges head on, taking all possible action to secure our long-term position.”
Horton said the airline will address its cost structure, which has become “increasingly untenable”, including labour costs.
AA is at a “cost disadvantage” compared to its larger competitors, “all of which restructured their costs and debt through Chapter 11”, he said.
Horton cited the accelerating impact of global economic uncertainty, revenue instability and volatile fuel prices as having intensified AA’s “competitive challenges”.
“We are committed to working as quickly and efficiently as possible to appropriately restructure American so that it can emerge from Chapter 11 well-positioned to assure the company’s long term viability and its ability to compete effectively in the marketplace, ” he added.