Having entered their bankruptcy filing just prior to the end of the year, American Airlines will continue to carry much focus in the New Year. The airline bankruptcy has struck fear in the hearts of consumers and employees alike, while economists wait to see how the bankruptcy case will affect local markets.
New Year, New Plan?
Citing nearly $12 billion in losses over the last decade, AMR filed for Chapter 11 debt reorganization in hopes of staving off financial ruin and salvaging operations of the nation’s largest airline carrier. American Airlines is a major employer for many large cities around the United States, an issue that is showing major concerns for locals. Having already discussed the closing of several terminals and the possibility of shutting down operations in at least one major hub, American layoffs could significantly affect local economies.
American’s main hub in Dallas-Fort Worth has not reported any plans for total shut downs, but has begun some downsizing efforts of flight staff among the its smaller airline, American Eagle. However, talks of layoffs at Tulsa International Airport have many concerned about the 7,000 employees and dependence on the airline for near $6 billion of local economic profitability, annually. If this happens, local unemployment rates will skyrocket and the negative effects could spread into local schools, transportation and housing markets. Although the New Year is upon us, the potential effects of the American Airlines bankruptcy in 2012 could be far reaching for smaller communities like Tulsa.