Tag Archives: United

American continues to fly, despite Chapter 11


| mchan@queenscourier.com

American Airlines — and its parent company AMR Corporation — have filed for reorganization under Chapter 11 bankruptcy protection, but the company said it is still operating normal flight schedules, as well as honoring tickets and refunds.

“This was a difficult decision, but it is the necessary and right path for us to take – and take now – to become a more efficient, financially stronger and competitive airline,” said AMR President Thomas Horton, who is also the company’s newly-appointed chairperson and CEO. “We have met our challenges head on, taking all possible action to secure our long-term position.”

AMR filed voluntary petitions for Chapter 11 in the United States Bankruptcy Court for the Southern District of New York on November 29.

The Chapter 11 process enables the company to continue conducting normal business operations while they restructure their debt, costs and other obligations. According to the U.S. Courts, Chapter 11 debtors usually seek debt relief by proposing a plan of reorganization to keep its business alive and pay creditors over time.

According to a statement released by the company, AMR has $4.1 billion in unrestricted cash and short-term investments to ensure uninterrupted supply of goods and services during the proceedings. The money allotted will go toward fully maintaining AAdvantage frequent flyer and other customer service programs, ensuring all AAdvantage miles and elites status earned by members remain secure and intact, providing employee wages, healthcare coverage, vacation and other benefits without interruption and paying suppliers for goods and services received during the reorganization process.

AMR will be filing monthly operating reports with the Bankruptcy Court and also plans to post monthly operating reports on the Investor Relations section of their website, AA.com.

“Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable given the accelerating impact of global economic uncertainty and resulting revenue instability, volatile and rising fuel prices and intensifying competitive challenges,” Horton said.

Competitors Delta, United, Continental and US Airways have all previously filed for Chapter 11 reorganizations.

“But as we have made clear with increasing urgency in recent weeks, we must address our cost structure, including labor costs, to enable us to capitalize on [our] foundational strengths and secure our future,” said Horton.

For more information, visit AA.com/restructuring.

Queens’ Morning Roundup – 11/07/2011: Small child’s severed foot found on front lawn in Rosedale


| jlane@queenscourier.com

The Round Up - News From Around Queens Updated Daily

Suspect smashes 12 cars in Astoria

A driver is under arrest for allegedly plowing into a dozen vehicles in Queens. Police say Michael DeLorenzo jumped into a friend’s car early Sunday morning following a dispute in Astoria. When responding police attempted to stop him, they say he took off and ran through two red lights, striking a car at each intersection. Read More: Wall Street Journal

 

Small child’s severed foot found on front lawn in Rosedale

A man taking out the garbage Sunday night made a gruesome discovery. The man found the severed foot of a small child on his front lawn. The child is believed to be three or four years old. Search dogs worked the area on 139th Street, but apparently found nothing else. Read More: CBS News

 

26 Army National Guard soldiers from Queens ready for deployment to Afghanistan

Twenty-six men and women from the Army National Guard left for training ahead of a deployment to Afghanistan on Saturday. There were tears, hugs and lots of goodbyes in Queens at an American Legion during a farewell ceremony for 26 members of the 14th Finance Detachment. Read More: CBS News

 

Ex-tribal chief peddled ecstasy

An elderly former upstate Mohawk chief who once ran on an anti-drug platform in a tribal election has just been charged with ecstasy-trafficking in New York City. Federal agents last week busted Native American honcho Philip Tarbell after he allegedly tried to sell $60,000 worth of the psychedelic drug — stashed in a candy box — to an undercover officer near JFK Airport. He had already pleaded guilty to peddling marijuana last year. Read More: New York Post

 

Queens Courier crowns ‘Kings’

The Queens Courier hosted its 4th Annual Kings of Queens at Terrace on the Park, at which leaders in the business and no-for-profit worlds were feted. Read More: Queens Courier

FAA Investigates Lasers Shined On Planes At LaGuardia

The Federal Aviation Administration was investigating Sunday after lasers were pointed at two airplanes on the same runway at LaGuardia Airport the previous night. Officials say a laser was pointed at a Jetlink flight that was landing around 6 p.m. Saturday and another was pointed at a United plane about an hour later. Read More: NY1