History
AMR corporation was formed in 1982, as part of American Airlines's non-bankruptcy reorganization into a Delaware corporation, its name derives from American Airlines's former ticker symbol on the New York Stock Exchange.
On November 29, 2011, AMR Corporation filed for Chapter 11 reorganization bankruptcy with $4 billion of cash.
The decision came as the airline tried to "achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers," the company said in a statement. American Airlines stated that despite the filing it was continuing normal operations. Chairman and CEO Gerard Arpey stepped down and was replaced by company president Thomas W. Horton.
American was the last of the remaining legacy airlines in the US to file for bankruptcy, and thus there are no remaining legacy carriers that have not taken advantage of Chapter 11.
The Air Transport Association group said that unofficial research states that AMR was the 100th airline company to go into bankruptcy protection since 1990.
On December 2, 2011, AMR Corporation was replaced by Alaska Air Group in the Dow Jones Transportation Average.
In February 2012 the company announced that in order to cut operating costs and boost revenue, it would eliminate 13,000 jobs, which amounted to 18 percent (including 15 percent management positions) of American Airline's 73,800 employees. This was projected to cut 20 percent—$2 billion—of operating costs and raise revenue by $1 billion. Since 2001, accumultive losses of the company was $11 billion.
The new CEO said there would probably be jobs cut due to reduction to the flight schedule. On February 1, 2012, Horton announced that they would be cutting 13,000 jobs and restructuring pension benefits, after losing $884M in the first nine months of 2011 and $904M in December 2011 alone.
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