The only Major US Airlines which had until now avoided the bankruptcy badge has also given in. American Airlines and its parent company AMR Corp filed for Chapter 11 reorganization in federal bankruptcy court on Tuesday.Other major US Airlines like Delta, United, Continental and US Airways have already gone through the Chapter 11 "reorganizations".
In its bankruptcy filing, AMR said its cost-cutting in recent years had been insufficient and that it could not continue without changing its "uncompetitive cost structure." American airlines has the industry's highest labor costs. The fuel prices are also rising and travel demand are on the descending trend.
Shares of AMR have plummeted 45 % since the end of September '11. And last week the shares hit their lowest since 2003.
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| source: www.nyse.com |
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