AMR, the parent company of American Airlines, and AMR Eagle Holding Corporation announced Tuesday that it filed voluntary petitions for Chapter 11 reorganization in U.S. Bankruptcy Court for the Southern District of New York.
In a press release, the company said the move is to achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers.
The airline flies out of three gates at . It has a total of seven daily arrivals and seven daily departures from Chicago and Dallas, according to Bradley’s website.
AMR’s Board of Directors determined that a Chapter 11 reorganization is in the best interest of the Company and its stakeholders, the release said. Just as with the Company’s major airline competitors in recent years, the Chapter 11 process enables American Airlines and American Eagle to continue conducting normal business operations while they restructure their debt, costs and other obligations.
American Airlines and American Eagle are operating normal flight schedules today, and their reservations, customer service, AAdvantage® program, Admirals Clubs and all other operations are conducting business as usual.
“This was a difficult decision, but it is the necessary and right path for us to take – and take now – to become a more efficient, financially stronger, and competitive airline,” Thomas W. Horton, Chairman, Chief Executive Officer and President of AMR and American Airlines, said in a statement.