As I suggested on October 4, American Airlines has filed for Chapter 11 bankruptcy. In its petition filed in New York, AMR reported assets of $24.72 billion and liabilities of $29.55 billion. The company has $4.1 billion in cash. They have lost about 50 billion dollars in the last decade. The bankruptcy will give the carrier the opportunity to reduces its debt levels. A chapter 11 filing allows for a reorganisation. The aim is to survive. What does this filing mean? Not much will change immediately. Existing ticket holders will find their tickets are honoured. Planes will still…
Gerard Arpey
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