Before entering bankruptcy, the airline agreed to buy lots of new planes from New York will see things the company's way.
"While the airline needs to address more immediate needs, including operating costs, employee salary, benefits . this financial aspect of the airline s bankruptcy is unusual," Mr. Frischling wrote Tuesday.
Mr. Hobica says a next step for American to survive will be to look for a merger partner, as other legacy airlines have done.
In the short run, the bankruptcy filing may give some travelers a reason to migrate elsewhere for ticket purchases. Fairly or unfairly, the B-word brings connotations of financial instability and uncertainty.
Longer-term though, a successful run through bankruptcy could open the door to a healthier airline that more customers want to fly.
"American has a chance to straighten up and fly right," travel journalist David Armstrong writes on his website. "The changes will be painful for workers and shareholders but, long-term, travelers will probably benefit from a streamlined, modernized airline."
Under its previous CEO Gerard Arpey , AMR prided itself on having avoided bankruptcy. But higher labor costs resulted in American posting losses even as rivals returned to profitability.
With roughly average ratings on its service quality, and with consumers focused squarely on price, raising fares isn't on American's menu of options for financial revival.
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TopicsAirlines
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