FIN 3717 Chapter : Case 13 American US Air
Document Summary
The amr corporation, the parent company of american airlines, said on. Tuesday that it had filed for bankruptcy protection in an effort to reduce labor costs and shed a heavy debt burden. They declared bankruptcy in order to restore the company"s profitability, operating flexibility, and financial strength. One of the chief goals of amr in bankruptcy was to lower its labor costs. Amr"s problems are more revenue related than cost related. Amr"s financial health has been eroding for years. The company has posted annual losses three years in a row, including a million loss in 2010. It also recorded a million loss through the first nine months of 2011. But also, amr had a cost related problem. As part of an effort to cut long-term costs, american announced a billion order for 460 new single-aisle planes from airbus and boeing, part of a major overhaul of its aging fleet of more than.
