American Airlines became the last major US carrier to file for bankruptcy protection yesterday, blaming soaring fuel costs, low-cost airlines and mergers between competitors for its woes.
AMR, the parent company of American Airlines and American Eagle, the regional commuter carrier, filed for Chapter 11 protection as it sought to buy time to cut costs and reduce its mounting debts. The group also named American Airlines' president Thomas Horton as the carrier's new chairman and chief executive, succeeding Gerard Arpey, who is retiring, despite being asked to stay on.
"This was a difficult decision, but it is the necessary and right path for us to take - and take now - to become a more efficient, financially stronger and competitive airline.
"Our very substantial cost disadvantage compared to our larger competitors ... has become increasingly untenable given the accelerating impact of global economic uncertainty and resulting revenue instability, volatile and rising fuel prices and intensifying competitive problems."
The main competitors of American Airlines, the world's biggest carrier as recently as 2008, went into bankruptcy protection after the 11 September terrorist attacks. Among them were Delta Air Lines and United Airlines, which used bankruptcy proceedings to renegotiate staff contracts and substantially reduce their costs.
