American Airlines Files for Chapter 11 Bankruptcy

It is very expensive to fly these days with gas prices through the moon and airlines trying to maintain with added costs to the customer.  But, Oprah’s favorite airline she once suggested to her viewers is taking a nose dive in the economy.

According to Reuters, American Airlines has filed chapter 11 in an effort to organize their financial affairs which include what could be the biggest pension default in U.S. history.  The airline owes $10 billion in pensions that they are finding it hard to come up with. 

Oprah may have been the only one that could afford to fly on American.  They haves always been a bit more costly than the others.  And now with all the baggage costs and the nickel and diming of the customers, the bottom has still fallen out somehow.

This restructuring will not stop them from flying though.  They will still be in the air for now.  American now falls in the #3 spot amongst airlines behind Delta and United.  Read the full report here.

-J.C. Brooks

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