Unions Force American Airlines Into Bankruptcy
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FORT WORTH, Texas (AP) — American Airlines’ parent company is seeking Chapter 11 bankruptcy protection as it seeks to unload massive debt built up by years of accelerating jet fuel prices and labor struggles.
The nation’s third largest airline also said its CEO Gerard Arpey will step down. He’s being replaced by Thomas Horton, currently the company’s president.
Fort Worth, Texas-based AMR Corp., along with its regional affiliate AMR Eagle Holding Corp. said Tuesday that they filed voluntary petitions to reorganize.
American says it sought protection to reduce its costs and debt to remain competitive.
American says labor-contract rules force it to spend at least $600 million more than other airlines.
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