Breaking from The Wall Street Journal and American Airlines itself, AMR – the holding company of American Airlines and American Eagle has filed for Chapter 11 Bankruptcy Protection.

Quickly reading it, AMR is doing this to restructure its costs and debt to assure it’s long term survival, and thus, has filed Chapter 11.

AMR intends to operate all services through the protection, protecting AAdvantage, and has $4.1 Billion in the cash pile.

AMR States that they intend to:

  • Provide safe and reliable service;
  • Fly normal schedules;
  • Honor tickets and reservations, and make exchanges and refunds as usual;
  • Fully maintain AAdvantage frequent flyer and other customer service programs, and ensure all AAdvantage miles and elites status earned by members remain secure and intact;
  • Provide Admirals Club access and similar amenities to members and eligible customers;
  • Remain an integral member of the oneworld® alliance, of which American is a founding member, and continue its codeshare partnerships;
  • Provide employee wages, healthcare coverage, vacation, and other benefits, without interruption; and
  • Pay suppliers for goods and services received during the reorganization process.

Expect a LOT more on this later.

The Release is at

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Well it seems that the carrier that a lot of people don’t like has entered Chapter 11 Bankruptcy protection, citing the economy and the downturn.

Mesa Air Group operates aircraft for Delta, United and US Airways which is included in its Chapter 11 request. Its joint Hawaiian inter-island operation Go!-Mokulele is not part of the filing.

Jonathan Ornstein, chairman and chief executive, said he expects Mesa will need only “a matter of months” to emerge from bankruptcy.

The air group will be expected to make serious cuts in its fleet of 25 aircraft that are already parked up, whilst allowing it to finish its lawsuit with Delta quickly.

Mesa’s fleet is a mixture of Dash-8′s, CRJ-200′s, CRJ 700′s, CRJ 900′s, ERJ-145′s and various mixed other aircraft, with emphaisis on the 50 seat market.

Mesa’s reputation however goes before it, and some people would prefer Mesa to go away. Whilst the the aim of this reorg is to cut aircraft, if it’s time for staff to go – there will be serious problems as the staff have been cut and shaved so many times…

Good luck to the staff involved

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