American Airlines files for bankrupcy

[Horace Horsecollar]

I was planning to book my flights to London with them for this summer. They have the best times from my city.

Now I don't know if I should do it. The flights have been about $1500 each round trip from St. Louis--need to book 5.

There is no reason to worry about American Airlines going out of business in 2012.

According to a recent Bloomberg article, "AMR had $4.1 billion in unrestricted cash and short- term investments as of Nov. 25, Chief Financial Officer Isabella Goren said in an affidavit." That means American Airlines could keep flying and for a long time, even if AMR had not filed Chapter 11.

The problem is that AMR has been losing money for years. They can't keep operating at a loss forever. Now, with the Chapter 11 filing, AMR should be able to reduce their operating costs significantly, with the goal of returning to profitability.

 

[castle1]

Flew on them today....business as usual. They are just reorganizing, and reducing debt. They will still be around.