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AMR Holdings: Decision day moves closer
30 January 2012
It is still unclear how the new-look American Airlines will be structured when its parent, AMR Holdings, emerges from bankruptcy.
Read more:
AMR Holdings
American Airlines
bankruptcy
Chapter 11
Marc Landgraf
Lufthansa Consulting
AirlineForecasts
Vaughn Cordle
Tom Longman
Between 1978 and 2010 more than 185 US airlines filed for bankruptcy. Of those, only 13 were still operating in 2010.
In order to emerge from bankruptcy in 2006, United decreased its overall expenses by $7 billion, reduced its fleet by 8% and laid off about 2,500 employees, or 30% of staff. The restructuring prepared the airline to merge with Continental, becoming one of the world’s largest airlines.
Also in the middle of the last decade, Delta terminated pension plans, cut up to 9,000 jobs and reduced its fleet by 11% to emerge from bankruptcy. Then the carrier merged with Northwest, which had also laid off 1,400 flight attendants and cut pay by 22% before emerging from bankruptcy in 2007.
As far as airline restructurings go, the AMR Holdings bankruptcy is straightforward. The company filed for Chapter 11 on November 29 last year and had until...
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