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American Airlines files for bankruptcy protection | Print |  E-mail
Written by Larry Aiello   
Wednesday, 30 November 2011 15:46
DFW American Airlines Departure

American Airlines (AA) filed for bankruptcy protection yesterday.

American Airlines flies to Rome Fiumicino (FCO) and Milan Malpensa (MXP) and other destinations in Italy through their codeshare partners.

The bankruptcy should not affect their flight operations, as many US airlines recently have filed for bankruptcy protection and are still operating such as Delta Airlines and United Airlines.  It is a business move they do not want to undertake, but they do it to restructure their contracts to more favorable terms.  In fact, prior to yesterday, they were one of the few major airlines in the United States (along with Southwest Airlines and JetBlue) to not have filed for bankruptcy protection.

Here is a quote that appears on their site

"American Airlines is flying normal schedules and conducting business as usual worldwide."

They will honor all their flights and it should not affect their frequent-flyer miles.

What will happen to airline prices to Italy?

The perceived negativity may decrease demand for their flights, which may put some downward pressure on prices.

Eventually, they will probably scale-back the number of flights, especially the unprofitable routes.  Should that happen, you can expect fares to increase due to the decreased supply.

Worse-case scenario for American Airlines

I expect the airline to continue operating one year from now, three years from now, etc.  However, if they are not able to restructure their contracts to more favorable terms, and cease operations, you will be protected for any tickets purchased as long as you use a credit card.

Phone numbers for AA - English 1-800-433-7300 / En Espanol 1-800-633-3711

 

 

Comments  

 
0 #3 Teresa 2011-12-05 12:50
This can indeed lead to more and more airfare promotional sale from both AA and other international carrier but as to the long-term prospect the decrease supply of available sets may possibly pressure prices to go up which can be bad news for ordinary travelers.
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0 #2 Addicted2Italy 2011-12-03 16:41
Hi Moore,

I hope they can recover as well. I am sure they will, many other airlines have gone through this process.

Thanks for posting and visiting.

Larry
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0 #1 Moore 2011-12-03 14:07
I hope American Airlines can be able to recover soon from this financial debacle and come out of the mess stronger and leaner.

This is indeed a business move designed to protect the company from further hemorrhage. Under the bankruptcy protection, the company can compel for better terms from its creditors and suppliers. :D
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