in the Travel Market
In yet just one more sign of harder economic times which have impacted on the travel world. American Airlines parent company AMR (Owner of American Airlines and American Eagle) filed for Chapter Eleven Bankruptcy protection Tuesday morning in New York.
According to a report made in the USA Today, while it is certainly no secret that American has been having its fair share of economic troubles, and struggling with mishaps, out of control labor, employee compensation and spiraling fuel costs, recently AA discontinued talks with its labor unions. After it Pilots union refused to send American’s proposed deal to a vote by its members. Probably the company is in hopes now that the Bankruptcy filing today might bring some serious concessions from its labor unions to the bargaining table.
It is also no secret that American has been losing popularity with customers too, for much of the past decade due to poor service, especially with unreliable on time arrival of not only passengers but their luggage. Certainly there were some other misfortunes of late, such as being pulled from major travel service agency booking engines certainly did not help to improve its financial situation either.
Also (as reported by the Dallas Morning News) AMR’s CEO Gerard Arpey stepped down, announcing his rejection of the companies hopes that he would help guide them through what will be one of its more troubled times, and a “painful reorganization”. However , Arpey rejected the offer announcing his decision rather to retire. The DMN further reports that the carrier’s operations has posted an $868 million dollar loss in just the first nine months of this year.
In attempts to stem the tide of consumer concerns, American Airlines released a statement on Tuesday, saying that they expect to continue normal business operations during the reorganization process. American and American Eagle (its regional carrier counterpart) say they expect to continue to fly their normal schedules with 3,300 daily flights. To honor all tickets and reservations. Fully maintain its AAdvantage frequent flyer program. Continue Admirals Club amenities. And to provide employee wages and health benefits without interruption.
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