AMR Corp, the parent company of American Airlines and American Eagle, stated (30-Nov-2011) the US Bankruptcy Court for the Southern District of New York granted approval of a series of first day motions filed by the company to help facilitate American and American Eagle's continued normal business operations throughout the reorganisation process. The company also reported that, as expected, American and American Eagle continued normal operations, with flights, reservations, baggage handling, customer service and other functions operating as usual. [more - original PR]
CEO Tom Horton told the Fort Worth Star-Telegram the gap between the company’s costs and the rest of the airline industry had become “untenable” and now was the correct time to conduct a restructuring. Areas of cost disadvantage include the company’s pension plans and the retiree medical plans as well as its use of older, less fuel-efficient aircraft.