American Airlines has been under Chapter 11 bankruptcy protection since November 2011. This type of bankruptcy is often sought by corporations seeking temporary court protection from creditors and time to reorganize their company. Fodors and Air Transit World reported in January 2013 on losses by the airline as well as its efforts for success.
The airline had a net $1.98 billion loss in 2011 and improved slightly with a $1.88 billion net loss in 2012. The company took in more revenue in 2012 than it did in 2011 and made progress in its bankruptcy restructuring. For example, it cut labor costs by more than 15% in the restructuring, an important goal of AMR, Americanâ€™s parent companyâ€™s, bankruptcy filing.
In order to rebrand the airline, the company came out with new logo designs and new aircraft livery. Additionally, the bankruptcy court judge gave the company permission to purchase new aircraft via orders that it had placed prior to filing for bankruptcy. These aircraft will help American Airlines compete in the air travel market. A new order for smaller jet planes will also allow the airline to offer better and more comfortable regional air service. Â It is hoped that AMR will exit Chapter 11 bankruptcy soon. The company may decide to merge with US Airways to secure a sound financial future.
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