American Airlines files for bankruptcy

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AMR Corporation, the parent company that owns American Airlines, has filed for bankruptcy protection. The announcement follows what can only be characterized as a disastrous stretch for the US carrier, posting yearly losses of $471 Million and taking a 79% hit on its stock price.

A costly, on-going labor dispute between management and pilots is widely cited as the cause of American's woes. Stretching from 2006, talks recently broke down earlier in November when the Allied Pilots Association, the union representing American captains, refused to take a vote on a proposed contract. Thomas Horton, who is taking over the helm of AMR Corp. following CEO George Arpey's departure, claims American faces an $800 million cost disadavantage compared to other airlines when it comes to labor expenses.

Also contributing to American's slide is its outdated squadron of planes, which gobble up expensive fuel. The carrier will proceed with a $38 billion aircraft upgrade, despite its Chapter 11 announcement.

American has taken heat in recent years over its lucrative executive bonuses, a point that is bound to resurface as AMR struggles to restructure its finances. Top brass received $6.5 million in bonuses in 2009 alone, a year during which the company lost $375 million in its first quarter.

American's fate, as well as what kind of impact passenger's might feel, is still unclear. The nation's top two airlines, like Delta and United, have gone onto flourish after filing bankruptcy, however, they were aided by mergers with other carriers (Northwest and Continental, respectively). American Airlines merged with the now-defunct TWA in 2001, but was hit hard in the economic aftermath of the September 11th attacks.

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• amr corporation
• american airlines
• aa
• economy
• bankruptcy
• allied pilots association
• thomas horton
• george arpey
• delta airlines
• united airlines
• Taiwan animation
• Taiwanese animation
• Taiwan
• animation
• Next Media Animation
• Next Media
• NMA

[LabradorG]

AMR nor you can actually back up the $800million claim. WHY? because it's Bull!

AMR chose to compare broadly different cases to make it's point. SWA 737 5 crew vs AAL 767 12 crew. DUH! AA's flight costs more! just like the CEO says he's underpaid (even though he was 2nd highest paid WITHIN the industry) because he's not paid like trump or Gates..both are CEO's too. get it?

[robloxzrock]

@yurianne07 TWA Tea

[robloxzrock]

booooooooooo!american!,go!unit­ed

[JohnRhysMusician]

Cathay is a nice airline. Affiliated with American by the way. It might be inaccurate to call it an "Asian airline," as it is a company owned by almost entirely British and American investors. Cathay Pacific is a corporate throwback to the Hong Kong colonial era. Also all but a few of its top executives are white Anglo-Saxon males.

[jordnthoms]

the comment at the end of this video is simply idiotic. true, but idiotic.

fly on an asian airline and a sexy flight attendant will speak to you in any language of your choice. fly american (did yesterday) and it is usually haggard older men who can only speak english. they have to play recordings for japanese or korean announcements. the difference is that, in order to obtain that level of service and skill from an american citizen, much, much more pay would be needed.

[595o]

@TheReturnOfBigBear It's "you're", "psychological" and "affected".

[bigtampabear]

It's all history now..what's done is done. I was with Eastern, National, Pan Am, and now retired from American..I know how an airline operates, and it's always the employee's who suffer..Blame the management, not fellow employees..

[TWTR4EVER]

@TheReturnOfBigBear Lol....Psycological... YOU CAN'T EVEN SPELL (Psychological)

Hateful? If you knew what you're talking about you would know as how much of a fool you're coming across!

THE INFAMY AA/AMR, their InFlight Crews & AFA, their union committed against TWA InFlight Crews is very well deserving of the hell that's coming to them!

You as always ill informed and as ASSES Assuming!

Screw AA InFlight Crews, AFA and should they rot in hell!

DL/NW & CO/UA will have no mercy!

[TheReturnOfBigBear]

Your a Total Nut Job

Delta really needs to start doing Psycological Profiles on their Male Flight Attendants, I don't believe Hateful & Evil are Qualifications Delta is Looking for, A total lack of Empathy for the suffering of others indicates Psychopathic Tendancies, Delta has Something Toxic in the Sky

God Bless & look after the AA Employee's effected by this Sad event

[TWTR4EVER]

TheReturnOfBigBear not hundreds, thousands out of work!

Stop making a fool of yourself, concentrate in your Drag Queens & Transexual multiple YouTube Accounts & imaginary friends!

Do your research you ignorant fool, the AA & TW merger was roughly 12 years ago NOT 20!

I have no compassion for any AA InFlight Crew AFA & their members! Everything they inflicted on TW Crews is coming to them with profits!

Hope they are FURLOUGH, LOSE THEIR RECALL RIGHTS, THEIR PENSIONS AND EVENTUALLY THEIR JOBS!