Posts Tagged news

AMR (Parent of American Airlines) Files for Chapter 11 Reorganization

Today AMR, the parent organization of American Airlines among other companies, filed for bankruptcy under Chapter 11. Here is a link to the memo that was posted on the American Airlines website.

As a holder of 15 ticketed segments on American Airlines in the next 5 months, I will admit that this gave me a bit of pause. The general wisdom is that I should not be concerned. American Airlines is a large airline and it is unlikely that they will go anywhere. The biggest impact will probably be that they will be a bit smaller–flying a few less routes or a few less times. Most of my segments connect large airports (JFK/MAD, DCA/MIA, CDG/BOS, etc.), so I’m not worried about those. It’s more of the DFW/PSP segments that I’m a little worried about (on the PSP side). Fortunately, those are in February and that’s not very far away.

As a quick background, I lost a ticketed round-trip when Indepence Air as a result of their unsuccessful Chapter 11 reorganization (which, incidentally, was 3 months from filing to ceasing all operations). Now, FLYi was a low-cost carrier and I received a full refund, but it still has me a little gun-shy. If AA were do cancel one of my flights and offer a refund, I would be vastly disappointed–especially if it was award travel that I worked hard to get booked. Then there are the miles to worry about. Again, I feel reassured by the bevy of Internet sources that say my miles are fine, but I’m a bit of a worrier… don’t mind me :). Here is a note about that very topic posted today on the AAdvantage facebook page:

“As you may know, on Tuesday, November 29, American Airlines filed for reorganization under Chapter 11. We took this action as part of our efforts to secure our long-term success in delivering the highest standards in air travel. We are committed to meeting your travel needs with outstanding customer service and safety, and it will be business as usual at American throughout our reorganization process. We want to assure you that your AAdvantage(R) miles are secure. The AAdvantage miles that you’ve earned are yours and will stay yours, subject to usual policies, until you choose to redeem them for a great award with us. Likewise, your elite qualifying miles and your elite status, including lifetime status granted under the Million Miler(SM) program is secure and remains intact. You will continue to earn miles through all our existing AAdvantage participating companies and you will be able to redeem those miles for the same great awards – flights, upgrades, car rentals and hotels just to name a few. And, throughout the coming year, we will be adding even more opportunities to earn miles, as well as new ways to redeem those miles. Thank you for the support of American and AAdvantage throughout this process. For information about American’s reorganization process, please visit

So, AAdvantage is assuring me that all will be well. Honestly, I’m sure that it will. Again, I’m just a worrier.



Leave a comment

%d bloggers like this: