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American Airlines files for bankruptcy
By: Bill O'ReillyNovember 29, 2011
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STORY EXCERPT
New York Times: The AMR Corporation, the parent company of American Airlines, said on Tuesday that it had filed for bankruptcy protection in an effort to reduce labor costs and shed a heavy debt burden.

AMR was the last of the major legacy airline companies in the United States to file for Chapter 11. Analysts said that its reluctance to do so earlier had left it less nimble than many of its competitors.

The company says it intends to operate normally throughout the bankruptcy process, as previous airlines have done, and does not expect the restructuring to affect American's flight schedule or frequent flier programs...

One of AMR's chief goals in bankruptcy will be to lower its labor costs.

The company had been in contract talks with its unions until the negotiations stalled earlier this month when the pilots' union refused to send a proposal to its members for a vote. Because federal bankruptcy rules allow companies to reject contracts, AMR may take a harder negotiating stance with its unions.
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