Filed for bankruptcy protection ... American Airlines.Credit: Bloomberg
Passengers and crew members were rattled yesterday by news that American Airlines was seeking bankruptcy protection but said they were hopeful that the third-largest US carrier will survive.
While the carrier insists that flights will continue as scheduled and sent an e-mail out to customers promising to protect their frequent flyer miles, passengers admitted they were wary of the changes ahead.
"I'd be concerned about the status of any unused tickets," said roofing executive Paul Ford after landing at Dallas-Fort Worth airport, AA's main hub.
"I'm worried about the negative impact. People aren't going to want to buy tickets. You know how people are any time there's negative news."
For Evan Chenowith, a self-described American Airlines loyal customer, the bankruptcy seemed indicative of the nation's economic difficulties.
"It's a tough economy I guess, but I just got off of a full flight -- I haven't noticed any lack of people on planes," he said.
"Everyone else has suffered so I guess it's more surprising they haven't (declared bankruptcy) before."
People here said they were also worried about how the bankruptcy would affect the local economy, since Fort Worth-based AA is a major employer and corporate sponsor, including of the home arena of the Dallas Mavericks.
"I guess my only question is what will happen to the AA Center?" said Dallas resident Elise Labrado, adding she was certain the company would survive but would perhaps be smaller and less influential in the area.
Employees expressed fears that they would be hit hard by the restructuring, and frustration that it comes just a few months after AA made the largest plane purchase in history: a $US16.2 billion ($US16.2 billion) deal to purchase 460 planes from Boeing and Airbus.
"We've been giving back so much on wages and benefits," said Shelly, a flight attendant who did not want her last name used due to fears of reprisal.
"I'm not convinced this isn't another effort to get more concessions. There's a lot of anger that we've been misled, and fear for what happens next."
Travis, a baggage handler for the airline who also did not want his last name used, expressed frustration that the news was announced during the busy holiday season but said it was business as usual.
"There's some uneasiness for us but we have to hope we weather the storm," he said. "We'll keep showing up and doing our jobs as long as we get a paycheck."
American Airlines is a member of the Oneworld Alliance and a codeshare partner with Qantas. In May this year Qantas began direct flights from Sydney to Dallas-Fort Worth in order to link up with the American Airlines hub.
The 10 largest airline bankruptcies since 1989:
Company Bankruptcy date Assets
UAL Corp December 2002 $25.197 billion
AMR Corp November 2011 $25.088 billion
Delta Air Lines September 2005 $21.801 billion
Northwest Airlines September 2005 $14.042 billion
US Airways Group September 2004 $ 8.349 billion
US Airways Group August 2002 $ 8.025 billion
Continental Airlines December 1990 $ 7.656 billion
Eastern Air Lines March 1989 $ 4.037 billion
Trans World Airlines January 1992 $ 2.865 billion
Trans World Airlines June 1995 $ 2.495 billion
Source: BankruptcyData.com
AFP
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