American Airlines files for Chapter 11 Bankruptcy

American Airlines and parent AMR will file for Chapter 11 bankruptcy Tuesday, AMR announced. Chairman and chief executive Gerard Arpey has resigned as well.

The AMR board picked Tom Horton, currently AMR and American Airlines president. Horton was picked by Arpey in 2010 as president, and Arpey recommended to the board that Horton replace him as chairman and CEO.

One person said the AMR board has asked Arpey to remain in his job and guide the airline through the painful reorganization. However, Arpey – who has spoken out many times against filing for bankruptcy – decided to leave.

Horton called the filing “a difficult decision, but it is the necessary and right path for us to take – and take now – to become a more efficient, financially stronger, and competitive airline.”

He also reassure customers that they won’t see any problems from the bankruptcy filing.

“American’s customers are always our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us,” Horton said in the early morning announcement….. conintued

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