AMR shares fall 33% on bankruptcy fears
4 October 2011Fears that the holding company for American Airlines, the fourth-biggest US carrier by passenger miles, would file for bankruptcy sent shares in AMR Corporation tumbling by a third on Monday.
Management at AMR, which owns the regional airline American Eagle as well as American, strongly denied the claims.
American is the only big US carrier not to have passed through a Chapter 11 bankruptcy filing in the past decade. That has led to suggestions the company would voluntarily file for bankruptcy to renegotiate labour – and in particular pilot – costs, despite holding a cash pile of about $5bn.
source: Finantial Times
