While, I know its pretty much inevitable, I am not a fan of this $11 billion merger. We know that: Merger will be completed by October, 2013 American will be the world’s biggest airline It will have two per cent more air traffic than United Airlines AA will have 6,700 flights to 336 locations in 56 countries The airline will have 1000 planes The new workforce will be close to 100,000 AMR creditors will own 72% of the combined airline and US Airways the other 28% of the ownership The American Airlines name will…
AMR Corporation
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AA Bankruptcy Restructure- What does it mean? [Updated]
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…
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