In Bankruptcy, Bankruptcy In The News, Blog

There is a lot going on in the world of air travel, and American Airlines is trying to continue to climb their way out of debt with the protection of their recent bankruptcy filing. In the crazy economy companies have to do what is necessary in their eyes to keep their businesses afloat. Just recently almost all of the airlines increased their flight prices around $10 per round trip. Southwest was the first to make the leap, and most of the business followed suit quickly after. American Airlines however chose to raise only some of their prices, leaving other trips at the regular price.

Customers were also told that certain sales were being offered on flights; perhaps this is a method for bring in more business, we shall see. Another measure that has been taken by American Airlines is their decision to reduce the benefits for retirements as well as loosening up the restrictions they had on working with other airlines in a method called code sharing, in hopes that it will improve the overall company revenue. Attempting to find new ways to save and earn money, the courts decided that the airlines would be able to dismiss previous contracts made with pilots, allowing them to cancel them out of term.

They are hoping to save around $1 billion dollars with the new adjustments that are being made to their labor agreements. One of these changes includes lengthening the maximum hours of work for the pilots next month. Unfortunately for the pilots, their supplemental retirement plans will be frozen next month as well. Reports show that the U.S. Airways Group is continuing to pressure American Airlines for a company merger, and AA is still convinced that they can make it out of their debt and continue to refuse the merging options as they continue their bankruptcy process.