Last week, AMR Corp., owner of American Airlines, filed for Chapter 11 bankruptcy at the U.S. Bankruptcy Court for the Southern District of New York.
AMR said that filing for bankruptcy is the best thing for the company and their customers at this time. American Airlines had considered filing for bankruptcy for over 10 years after struggling to make profits and losing more than $11 billion. A recent increase in fuel prices led executives to finally seek bankruptcy protection.
American Airlines currently has about $4.1 billion in cash and investments, according to the bankruptcy filing. These assets will allow them to continue operations while they reorganize their business and pay off debts. Officials believe that customers should not notice any changes to their service, flight schedules, or frequent flier programs because of the bankruptcy.
Contact the Birmingham bankruptcy lawyers of GREENWAY BANKRUPTCY LAW, LLC by calling (205) 324-4000, if you or someone you know has questions about the benefits of filing for bankruptcy.