Good News In American Airlines Bankruptcy Plans

: Chris Lee Law Firm

  Filed under: Chapter 11

amr bankruptcyIt  has been a while since any news surround the American Airlines bankruptcy was positive or brought hope to consumers and employees. However, a recent development in debt restructuring efforts may bring some revenue to the company without making further cuts to operations or jobs.

The Right Stuff

The Chief Commercial Officer, Virasb Vahidi, announced a plan this week that is expected to improve company revenue by more than $600 million. By using the right type of airplane for certain regional routes, the airline should be able to reduce flight costs by consolidating airline passengers into a more efficient aircraft. The idea came as part of a plan to boost revenue by $1billion by 2017, a much needed aspect of the company’s overall bankruptcy plan.

Details of the plan include the alteration of its pilots contract, which current limits the number of 70-seat regional aircraft the company can use. By lifting the restriction, the airline will be able to use such jets to match demand on specific routes. For example, American currently operates several daily flights to Chicago using 66-seat and 120-seat planes. After the jet restriction is lifted the airline would be able to reduce flights to three a day using a larger, 140-seat jet. So far the plan has been met with open minds, but only time will tell if the consolidation of flights into larger aircraft can really save the company the money and the jobs of those lucky enough to have dodged the last round of cuts.

 

 


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