AMR Corporation

AMR Corporation

AMR Corporation’s Failure

AMR Corporation was an airline holding company and a commercial aviation company based in Fort Worth, Texas. It served as the mother company of American Connections, Executive Airlines, American Eagle Airlines, and American Airlines. In November of 2011, AMR filed for Chapter 11 of Bankruptcy and on December 9, 2013, fused with the US Airways Group to create the American Airlines Group, Inc., a company that offers extensive air travel options including chartered flights.

History

AMR Corporation was founded in 1982, as a portion of the American Airline’s non-bankruptcy restructuring to a Delaware corporation; the name was coined from American Airline’s previous symbol on the NYSE.

AMR Corporation filed for a Chapter 11 bankruptcy with a cash of $4 billion.

The pronouncement was made as the AMR Corporation tried to “achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers,” according to the company statement. Gerard Arpey, Chairman and CEO,was then replaced by the president of the company, Thomas W. Horton.

And on 2 December 2011, AMR Corporations was substituted by Alas Air Group in Dow Jones Transportation Average.

In February of 2012, AMR Corporation declared that to minimize the cost of operations and improve revenue; it will have to abolish 13,000 jobs, which is the equivalent of 73,800 workers of American Airlines.

Horton declared that the company will be cutting 13,000 jobs and reorganize pension benefits, after the loss of $884 million during the first nine months of 2011 and around $904 million in December of 2011.

Merger with US Airways

On January of 2012, US Airway Group had stated their interest on American Airlines and the AMR CEO, and that American Airlines is ready for a merger with US Airways.

On April 20, 2012, the three unions of American Airlines declared that they will support a merger between US Airways and American.

On July 2012, American declared that it will cut its capacity because of the grounding of a number of aircraft related to its bankruptcy and deficiency of pilots because of retirements. American Eagle, which is America’s regional airline, will have 35-40 jets retire and also its fleet of Saab turboprop.

In September 2012, Union members of the American are eyeing for a merger with other airline company. There are reports of a possible merger with companies like Alaska Airlines, Frontier, Jet Blue, Virgin America and US Airways.

On 31, August of 2012, the CEO of US Airways, Doug Parker declared that US Airways and American Airlines had agreed to a non-disclosure agreement, where the airlines would talk about their financial status and the possibility of a merger.

US Airways and AMR officially declared on February 14, 2013, that the two companies will merge to create the biggest airline in the world. The agreement is projected to close during the third quarter of 2013. The joint airline will carry name and branding of American Airlines while most of the operational management positions which include CEO Doug Parker and management team of US Airways will be retained. AMR President and CEO, Thomas W. Horton will be replaced by US Airways CEO, Doug Parker.

AMR Corporation Fleet

American Airlines has about 605 aircraft since April 2012 with incoming 451 orders. The new aircraft will be made of 200 Boeing 737s and 260 A320 new from Airbus over the next five years. The company will also have options and purchase rights for 465 aircraft through 2025.

The regional subsidiary of AMR, American Eagle Airlines will operate 284 airplanes,which includes 39 that will be operated by Executive Airlines(another subsidiary of AMR).

American Airlines is soon to launch its chartered flights from Los Angeles to Cuba which is not yet offered by commercial flights.

If you want to book for a charter flight, contact us at Charter Flight Group and we will be more than happy to assist you with your air travelling needs.