American Airlines files for Chapter 11 protection
FORT WORTH, Texas (AP) —
The parent company of American Airlines on Tuesday filed for Chapter 11 bankruptcy protection amid years of
higher jet fuel prices and labor struggles.
Fort Worth-based AMR Corp. and its regional affiliate AMR Eagle Holding Corp. filed voluntary petitions to reorganize in bankruptcy court in New York.
Normal flight operations will continue.
The nation's third largest airline also says CEO Gerard Arpey will step down. He's being replaced by Thomas Horton, currently the company's president.
American was the only major U.S. airline that didn't seek bankruptcy protection after the 2001 terrorist attacks.
Labor-contract rules forced American to spend at least $600 million more than other carriers.