Bankruptcy Protection

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American Airlines, AMR take the bankruptcy protection route

After being the only major airline in the US history to not have filed one, American Airlines and its parent company AMR Corp filed for Chapter 11 bankruptcy protection today. There had been speculation going around ever since AMR shares suffered a hug 40% drop in October that airline may file for bankruptcy sooner or later to cut costs specially its labor costs which are currently the highest in the industry but the timing of this announcement seems to have caught everyone by surprise. While the bankruptcy protection gives AMR some elbow room in its ongoing discussions with the pilots and other work groups, it also renders the airline a ripe target for takeovers in an industry that is currently in a very fluid state…

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