American's parent files Chapter 11

AMR Corp., the parent of American Airlines, today filed voluntary petitions for a Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

GerardArpeyAMR aims "to achieve a cost and debt structure that is industry competitive and thereby assure our long-term viability."

Chairman and CEO Gerard Arpey has resigned. Tom Horton, AMR's president, replaces Arpey.

The company indicated that American Airlines and American Eagle will continue normal operations.

This report originally appeared in Business Travel News. 

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