[Fort Worth, TX] Yesterday, it was announced that the parent company of American Airlines was filing for Chapter 11 bankruptcy. The airline is a heavy player in Florida’s air travel market with planes at 12 airports across the state offering service to 116 worldwide destinations.
Florida Gov. Rick Scott took the opportunity to reassure American’s employees and those citizens that depend on the airline that flights and service will resume as normal under bankruptcy proceedings.
“[Yesterday] I spoke with American Airlines Vice President Kevin Cox regarding the company’s decision … Kevin has assured me that American Airlines is continuing to provide regularly scheduled flights and services throughout the reorganization process,” said Scott through a prepared statement. “I know this was a difficult decision for the company, and it is certainly difficult news for the Floridians who are employed by the carrier.”
It may not have been that difficult of a decision. American Airlines‘ parent company, the AMR Corporation, said in a statement that it was looking to reduce its large debt and cut labor costs through the bankruptcy process, something that several of its competitors – as AMR pointed out – have already done.
“I am relieved that the company will continue operations throughout this process, and I am optimistic that this reorganization will better position American Airlines to be a profitable company and enable them to add jobs in Florida,” added Scott.
AMR, which still has $4.1 billion in cash on hand, promises to keep its AAdvantage Program flying as well as continuing employee pay and benefits.
“Our customers remain our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us,” said Thomas W. Horton, Chairman, Chief Executive Officer and President of AMR and American Airlines.
Horton, who’s comments were distributed via press release, is the newly installed boss at AMR/American, which was also announced yesterday. He succeeds Gerard Arpey, who retired.
Horton added that, “We intend to maintain a strong presence in domestic and international markets, including our cornerstones in Dallas/Fort Worth, Chicago, New York, Miami and Los Angeles.”
By: Mark Christopher/Sunshine Slate
Image: Airbus S.A.S. 2011 (Computer Rendering by Fixion, via American Airlines)