American Airlines has suffered increasinglosses due to high fuel costs, operation(Reuters - Archive)
Made on any company or seen the royal's"American Airlines", the third largest airline in the United States request for bankruptcy to protect itself from its creditors under Chapteratheist th of U.S. bankruptcy laws, came thedecision of the company after it failed toconclude an agreement with its workers to reduce costs and suffering because of fuel costs the aircraft.
The company said its debt amounted to 29.55 billion dollars and has assets of about 24.72 billion dollars and the liquidity of approximately$ 4.1 billion, said its Chief Executive Gerardresigned Arby was replaced by companypresident Thomas W. Horton.
While companies have begun flying the U.S. to return to profitability in the past two andcontinued to any company or seen losses in the results reached $ 162 million in the third quarter of this year, has taken the decision to ask a court in New York for bankruptcyunanimous members of the Board of Directorsmeeting on Monday.
American Airlines was the only major airline in America that did not apply for bankruptcy afterthe September 11th / September 2001, whichdealt a severe blow to the U.S. aviation industry.
Continue operations
The company stresses that it will continue its flights and the granting of tickets, reservations,naturally, at the same time will start the process of reorganizing itself under bankruptcy law in order to cut costs, especially wages,have shares plunged by 45% since the end of September / September.
The rumors increased in recent weeks about an imminent bankruptcy the company, owner of American Airlines, and the reasons for thisfailure to reach an agreement with its pilots and other workers on the reduction of operating costs under the contracts, the company says it is paid annually at least $ 600 million more than any airline with for operating expenses.
However, the new Executive Director Hortonnoted that there are other factors behind the decision to request bankruptcy, most notablythe desire to cut costs amid the weak global economy and high and volatile fuel prices,which increased the latter by more than 50% in the last five years.
Source: Agencies