American Airlines Files For Bankruptcy

Travelers who typically pick up their car rentals after an American Airlines flight  might be looking for new carriers in the future.  The stability of the airline has come into question recently when, as reported by the New York Times, their aprent company filed for bankruptcy.  No matter which airline you choose you can save the most money with a cheap car rental from CarHireX.com  

It is worth noting that due to the structure of things with the United States law and economy, filing for bankruptcy doesn't always mean a business is at risk for failing.  In fact, by filing they have joined nearly every other major airline in the United States.  The AMR Corporation, the parent of American Airlines, claims they have filed in an effort to reduce labor costs and shed a heavy debt burden.  They do not expect the "restructuring" to affect American's flight schedule.

Prospects however appear grim.  The company lost $471 million last year and has lost more than twice that this year.   The company's stock price dropped 79 percent in 2011.  Even with the new negotiating powers and immunity that bankruptcy will afford them certain expenses, such as their leased fleet of planes which could be up to 29 percent of their total number of operating aircraft, could mean serious problems for the company in both the short and long term.  This translates to big problems for travelers, unless your plans can be changed to car rental.