In a statement this afternoon, American Airlines announced that it would continue normal operations following the bankruptcy of its parent company, AMR Corporation, which also owns American Eagle.
According to the company’s web site, flight schedules, reservations, and the AAdvantage frequent flyer program will remain status quo throughout its Chapter 11 reorganization, which is aimed at reducing debt and labor costs. In addition, the airline’s AAdvantage customers received emails today assuring them that accrued miles are secure.
The AMR Corporation is the last major U.S. airline carrier since 9/11 to file for bankruptcy protection in an effort to improve long-term profitability. The company said it has $4.1 billion in cash and short-term investments to use during the transition, as well as anticipated funds from general operations.
Photo credit: Drewski2112 / flickr