American Airlines Vows "Business as Usual," Except For the Part About Filing for Chapter 11
|From a video dispatched by AMR this morning from its Fort Worth HQ, where there's a new man in charge|
"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 these foundational strengths and secure our future. 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."But fret not: The airline will use some of the $4.1 billion in unrestricted cash and short-term investments it has on hand to keep the Admirals Clubs open and "fully maintain our AAdvantage frequent-flyer and other customer service programs."
Now's a good time, unless you work for AMR, to dig into this new AP Q&A with former American senior veep David Cush, now in charge of Virgin. For our purposes this morning, begin here:
In Dallas, you're telling fliers to "dump your older airline for a younger, hotter one." American responded by slashing fares to San Francisco and Los Angeles. Can you survive this fare war?Press Release AMR and American Chapter Filing
We'll survive. At current fares, it will not be a profitable route but it wouldn't be such a loss-making one where we would consider any type of reduction. You have to be in Dallas-Fort Worth if you're going to be a business airline.