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The American Airlines airline declares bankruptcy
posted on: Nov 30 2011 7:37 by RDugey. Viewed 17 times.
The American airline American Airlines and its parent AMR today declared bankruptcy and accepted the law regulating the processes of bankruptcy, but announced that they will maintain its operations with normality.
The company, Member of the Spanish Iberia Alliance OneWorld, said in a statement that has been declared in bankruptcy court in Manhattan to restructure its bulging debt and gain in competitiveness.
American Airlines with a presence in over 50 countries, receiving thus voluntarily Chapter 11 of us legislation which regulates bankruptcy processes and maintains the normal operations of the business.
The increase of labour costs and the price of fuel have boosted the debt of the airline, which took losses valued at $ 162 million in the third quarter of this year.
Assets of the company are valued at 24.720 $ million, compared to a u000aliabilities of 29.550 million $.
The restructuring of American Airlines, which has about 78,000 employees, includes the appointment of a new Chief Executive Officer, Thomas Horton, President since July and former director financial.
"I am confident that American will emerge stronger as a world leader known for its excellence and innovation," emphasized Horton in the release.
The airline shares today fell more than 60% in electronic negotiations prior to the opening of Wall Street.
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