AMR Corp.’s American Airlines, the world’s biggest carrier, may seek bankruptcy protection as early as this week in part because of the war in
Iraq if cost-savings efforts fail to match the drop in revenue. The airline seeks to avoid bankruptcy but needs to restructure more than US$27 billion
in debt and stem losses that totaled US$5.27 billion in the past two years.
American would be the fourth major U.S. airline to file for bankruptcy in the past year. US Airways, which also flies to the Dominican Republic is
already under Chapter 11 protection. American is hard-pressed to compete with profitable low-cost rivals. Airline industry sources say that a
bankruptcy filing by American could occur closer to 7 April.
The airline has already obtained US$660 million in concessions from the pilots union and US$340 million in concessions from the flight attendants.
Missing is a deal with the mechanics. Click here for more details