American Airlines files for bankruptcy

AMR Corp, the parent company of American Airlines, has filed for bankruptcy after it failed to cut costs via new contracts with workers.

AMR said it was filing for bankruptcy protection in order to achieve a cost and debt structure "that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience". The company had been in negotiations with pilots and other work groups for the past five years as it sought to reduce labour costs, but was unable to reach any long-term agreement. The company said it will operate normal schedules today (29 November) and expects to continue to fly normal schedules in future. AMR said the $4.1bn it held in cash and s...