It seems the disappointing news over the American Airlines bankruptcy keeps coming with each passing day. After last week’s announcement of the possible elimination of several union benefit contracts and close to 13,000 job cuts, company officials continue to insist that the company is headed towards a successful bankruptcy exit. Although many employees and consumers have already felt the effects of the filing, the bankruptcy aftermath could be devastating to local cities if the company doesn’t effectively resolve its debts.
Dallas-Fort Worth Blues
Besides being home to the bulk of the airline’s employees, surrounding cities have much to lose through the company cutbacks and threat of a potential buyout. As one of the largest airline hubs in the country, many of the local Dallas-Fort Worth economies are dependent on revenue from American Airlines.
Grapevine, Texas sits just north of the airport and is highly dependent on tourism and visitor traffic. Home to a leading resort and boasting a quaint Main Street filled with specialty shops and boutiques, Grapevine collected nearly $10.7 million in tourism revenue last year. Hotel taxes, restaurant and retail business are all an integral part of Grapevine and other nearby cities annual revenue stream. Any reduction in flight schedules or tourists means fewer shop customers and hotel patrons, both of which have the potential to devastate the local Grapevine and neighboring areas economies.