American Airlines Chapter 11 Brings Uncertainty For Many

: Chris Lee Law Firm

  Filed under: Chapter 11

american airlines bankruptcyAfter American Airlines announced that they would be filing for bankruptcy earlier this week, a wave of uncertainty has hit many. American Airlines is one of the largest airline carriers for several international hubs around the United States, providing a  main source of revenue for many airports. Further, American employs thousands of workers at each airport helping to boost the local economy. With their fate up in the air many are left wondering just where the cards will fall.

Effects On Others

American Airlines provides the majority of airport revenue for many locations around the country. Many airports, such as Dallas-Fort Worth International, depend on the fees and terminal leases that provide nearly 85 percent of their annual income.  Talks of cutbacks and downsizing have  many airport officials concerned about their ability to continue operating.

Airline consumers and employees have also voiced strong concerns over how the Chapter 11 case will affect their future. Consumers already have a short fuse for additional fees or increased ticket prices, a strategy that American may possibly pursue. American Airlines employees are bracing for the worst: a cut in pay or reduced benefits.

Company Plans

For now, airline officials are remaining calm and attempting to soothe the fears of the worried. American Airlines board members are aware of how cutbacks and cost increases would affect consumers, a plan they are working to avoid at all costs. Officials are tossing around ideas about how to reduce operating costs and boost profitability, such as eliminating unprofitable routes and negotiating lower terminal leases with airports. The company is maintaining a “business-as-usual” attitude as they enter the beginning stages of their debt restructuring plan.


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