American Airlines Parent Files For Bankruptcy; SFO Flights Not Impacted
SAN FRANCISCO (KCBS) — The parent company of American Airlines and affiliate American Eagle Airlines has become the latest in legacy airlines to file for Chapter 11 bankruptcy.
The announcement by AMR Corporation Tuesday morning did not appear to immediately affect travel on American as flights in and out of San Francisco International Airport seemed to be operating normally.
The airline has 10,000 daily flights with a significant presence at SFO. Just 10 percent of flights at Mineta San Jose International are flown by the company, down 50 percent from 10 years ago according to an airport spokesman.
Officials at the Forth Worth, Texas-based company have said operations will not be effected and that its Admiral’s Club will remain open. Frequent flyers with advantage accounts will also not feel the effects.
“I’m kinda shocked. I thought they were doing really well. I’m a frequent flyer of American Airlines so I hope that they pull out of it successfully,” said Sharika, a passenger flying to Cabo San Lucas.
The airline has also been negotiating a new contract with its pilots.
Thomas Horton, CEO of AMR Corp, said Tuesday that the airline may reduce its flight schedule “modestly” as it restructures in bankruptcy court, where it aims to reduce its hefty debt burden and labor costs. The only real risk to American’s passengers is if the restructuring fails, the airline ultimately liquidates and ceases to fly. Even then, many travelers are protected if they bought tickets with a credit card.
American is the nation’s third-largest airline behind United Continental Holdings Inc. and Delta Air Lines Inc.
(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)