American Airlines’ Parent AMR Files for Chapter 11

American Airlines wants to cut its workforce by 16% as part of a restructuring process. (Key – Craig West)

American Airlines' parent company AMR Corporation has filed for Chapter 11 bankruptcy protection. (Key - Craig West)

American Airlines’ (AA) parent company AMR Corporation, based in Texas, USA, has filed for Chapter 11 bankruptcy protection.  The move is an attempt to cut debt and reduce labour costs, whilst the airline is expected to continue operations throughout the legal process.
Unlike its US competitors, AA has not returned a profit in the last two years and was the only major American carrier that didn’t file for bankruptcy after the September 11, 2001, attacks.  American Airlines is part of the oneworld alliance, whose members include UK carrier British Airways.
The corporation has claimed that labour rules forced it to spend $600 million more than other airlines on staff costs.  AA Chairman Thomas Horton has expressed confidence in the company:  “We are committed to maintaining a strong presence in worldwide markets,” he said.