American Airlines files for bankrupcy

[Tantor]

Just heard on the news......hope no one has flights with them

 

[Dan Murphy]

Hi Karen.

I do not think it will affect anybody regarding flights. It never has in the past.

 

[LuLuO]

They're supposed to be operating normally during the bankruptcy, but I guess you never know what's going to happen. If I had a flight in the next month or two I don't think I'd worry. Further out, might make me uneasy, especially if I didn't have trip insurance.

 

[DebbieB]

It's chapter 11, which means the purpose is for reorganization and shedding debt. All the major airlines have gone through this in the past few years. I know USAirways went through it twice since 9/11.

 

[OrangeCountyCommuter]

Just heard on the news......hope no one has flights with them

Why????

Seriously as soon as I saw this I figured it's "panic time"

And it's not.

They filed Chapter 11. Something Delta, the former NW and others have done and.... they kept right on flying.

From the Wall Street Journal

"Until Tuesday, American was the only U.S. legacy airline that hadn't filed for bankruptcy protection."

"The Fort Worth, Texas-based company said both American Airlines and American Eagle are expected to fly normal schedules throughout the Chapter 11 process. "

No need to panic or create unnecessary concern.





http://online.wsj.com/article/SB10001424052970204449804577067880541410146.html?mod=googlenews_wsj

"

 

[NYDisneyKid]

i heard on the news today that stock shares were selling for 20 cents a share. hey ya never know,,,,buy alot and maybe they will increase.

 

[newyorkmike]

i heard on the news today that stock shares were selling for 20 cents a share. hey ya never know,,,,buy alot and maybe they will increase.

In most chapter 11 cases, common equity holders get nothing and the common equity is cancelled as a class. Holders of debt or preferred equity have preference in a reorg. and the debt is either restructured or converted to common equity or a combination of the two. The bottom line is that the stock traded down to nothing because that is what it will be worth. The common stockholders will get nothing and completely wiped out in the bankruptcy.

 

[Brer Chump]

It would have been more reasonable to say this:

"Just heard on the news......hope no one has stock with them"

AMR will likely be delisted by the NYSE and the stock will be worthless upon reorganization.

 

[Iggipolka]

I am scheduled to fly on American December 8th and 12th to MCO. I am nervous! This is the first time in a long time that I didn't buy traveler's insurance and now I wish I had.
I do hope that the reassurance they are giving that the flights will operate as normal, will continue. I'd be highly upset if that changes.

 

[jlewisinsyr]

I am scheduled to fly on American December 8th and 12th to MCO. I am nervous! This is the first time in a long time that I didn't buy traveler's insurance and now I wish I had.
I do hope that the reassurance they are giving that the flights will operate as normal, will continue. I'd be highly upset if that changes.

You will not have any issues! The OP is being an alarmist for no reason.

 

[Horace Horsecollar]

I am scheduled to fly on American December 8th and 12th to MCO. I am nervous! This is the first time in a long time that I didn't buy traveler's insurance and now I wish I had.
I do hope that the reassurance they are giving that the flights will operate as normal, will continue. I'd be highly upset if that changes.

I have 5 reservations on American for the first half of 2012. I don't have travel insurance.

I'm not worried at all.

 

[OrangeCountyCommuter]

I am scheduled to fly on American December 8th and 12th to MCO. I am nervous! This is the first time in a long time that I didn't buy traveler's insurance and now I wish I had.
I do hope that the reassurance they are giving that the flights will operate as normal, will continue. I'd be highly upset if that changes.

USAir filed (twice!) and flew
United filed and flew
Delta filed and flew
Northwest filed and flew
Contiential filed and flew.

AA is flying.

Here's the deal. Unemployement is sky high, the economy is in bad shape. Do you think the goverment will let a major employer go belly up. Heck the car companies were in a LOT worse shape and....$$$$$ You can still buy a GM car! Come next year you will still be flying AA

If it's a Spirit or an Allegiant then all bets are off, but AA is even planning to continue to buy thier new planes. thier unions may not be happy however

 

[MAH4546]

I have over a dozen flights booked with them over the next few months. I'm not worried. Nobody should be.

If it's a Spirit or an Allegiant then all bets are off, but AA is even planning to continue to buy thier new planes. thier unions may not be happy however

Spirit Airlines is insanely rich. They are owned largely by billionaire investment groups that also own airlines all over the world. I wouldn't even worry about a Spirit bankruptcy if it ever came to it (and given how insanely profitable they are, that's not in the cards right now).

 

[dudspizza]

Here is the email I received from AA:

Dear AAdvantage® Member,

As you may know, on Tuesday, November 29, American Airlines filed for reorganization under Chapter 11. We took this action as part of our efforts to secure our long-term success in delivering the highest standards in air travel. We are committed to meeting your travel needs with outstanding customer service and safety, and it will be business as usual at American throughout our reorganization process. More than 80,000 people at American appreciate your loyalty and look forward to continuing to serve you.

We want to assure you that your AAdvantage® miles are secure. The AAdvantage miles that you've earned are yours and will stay yours, subject to usual policies, until you choose to redeem them for a great award with us. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million MilerSM program is secure and remains intact. You will continue to earn miles through all our existing AAdvantage participating companies and you will be able to redeem those miles for the same great awards — flights, upgrades, car rentals and hotels just to name a few. And, throughout the coming year, we will be adding even more opportunities to earn miles, as well as new ways to redeem those miles.

American is honoring all tickets and reservations as usual, and making normal refunds and exchanges. And, we intend to maintain a strong presence in domestic and international markets. As we and all airlines routinely do, we will continue to evaluate our operations and service, assuring that our network is as efficient and productive as possible. Additionally, relationships with our oneworld Alliance and other codeshare partners are continuing to provide you with opportunities to earn and redeem miles for travel to hundreds of destinations worldwide, and we are honoring all tickets and reservations for travel on our partner airlines as usual. For information about American's reorganization process, please visit AA.com/restructuring.

Even more importantly, we remain committed to providing a superior customer experience with a focus on delivering what our customers value most — the newest fleet with our upcoming aircraft deliveries, network strength in the important cities of the world and world-class products, service and technology.

American Airlines has a proud history, and we will have a successful future. All of us on the American team thank you for your loyalty and we look forward to welcoming you aboard soon.

Sincerely,


Maya Leibman
President — AAdvantage Loyalty Program

 

[Horace Horsecollar]

Here's the official American Airlines website for the status of their Chapter 11 reorganization:

Information about American's Chapter 11 Reorganization

 

[pr surfer]

I think this is the best thing that could've happened to AA. When they emerge from this, they will be a sleeping giant and a force to be reckoned with.

Better chapter 11 now than waiting longer and having to go chapter 7.

 

[tink fan]

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.

 

[OrangeCountyCommuter]

Spirit Airlines is insanely rich. They are owned largely by billionaire investment groups that also own airlines all over the world. I wouldn't even worry about a Spirit bankruptcy if it ever came to it (and given how insanely profitable they are, that's not in the cards right now).

I can dream can't I? IMHO they are the worst of the lot and considering the overall state of this industry that's pretty bad!

 

[NYDisneyKid]

i remember when AA took over TWA. my miles transfered from TWA to AA

 

[pr surfer]

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.

I wouldn't worry about it... if you purchase with a credit card, a dispute will cover the cost in the unlikely event that they don't make it out of this.

Remember, this is chapter 11, not chapter 7. Almost every major US carrier has made it through Chapter 11 in the past decade.