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Information About American's Chapter 11 Reorganisation
American Airlines and American Eagle continue normal operations following Chapter 11 filing.
On November 29, 2011, AMR Corporation, the parent company of American Airlines and American Eagle filed voluntary petitions for Chapter 11 reorganisation in the U.S. Bankruptcy Court for the Southern District of New York. We took this action in order to achieve a cost and debt structure that is industry competitive and thereby assure our long-term viability and ability to continue delivering a world-class travel experience for customers.
We are making progress on a comprehensive plan to restore American to industry leadership, profitability and growth.
American is committed to continuing to provide our customers with the excellent service and safe, reliable travel experience they expect from us. American Airlines and American Eagle are continuing to:
Provide safe and reliable Service
Fly Normal schedules
Honour reservations, tickets, vouchers and make exchanges and refunds as usual
Fully maintain our AAdvantage frequent flyer and other customer service programmes, and ensure all AAdvantage miles and elites status earned by members remain secure and intact
Provide Admirals Club access and similar amenities to members and eligible customers
Remain an integral member of the oneworld alliance, of which American is a founding member, and continue our codeshare partnerships
The following links contain additional information and frequently asked questions:
FREQUENTLY ASKED QUESTIONS ABOUT FLIGHTS AND TICKETS
Can I continue to depend on American Airlines for my travel plans?
Yes. We remain deeply committed to delivering outstanding customer service and we are committed to meeting your travel needs with the same standards of safe, secure and reliable service. Equally important, we remain committed to providing a superior customer experience with a focus on delivering what our customers value most – the newest fleet with our upcoming aircraft deliveries, network strength in the important cities of the world and world‐class products, service and technology.
Will the flights I have already booked change as a result of the Chapter 11?
We will continue to operate our regular schedule of flights, and there are no immediate changes to our service or schedules as a result of the Chapter 11 filing. Tickets will be honoured, reservations are fully intact and our policies regarding exchanges and refunds remain the same.
Will my American Airlines tickets be honoured during the entire Chapter 11 process?
Yes, in accordance with our usual policies
Will my ticket purchased for travel on other airlines, including oneworld Alliance partners and other airline partners be honoured during the Chapter 11 process?
Yes. This will also be in accordance with our usual policies.
Will American still give me a refund for unused tickets?
Our refund policies have not changed. Refunds are granted in accordance with our usual policies.
What will happen to the refund I requested last week for a fully refundable ticket or the payment I am owed for a lost bag?
All cash payments to passengers approved by American Airlines for transactions both before the filing on November 29, 2011 and on/after the filing on November 29, 2011 will be honoured. These transactions include but are not limited to:
Ticket/Flight Coupon Refunds
Baggage Charge Refunds
Group 1 Boarding Refunds
Preferred Seats and former Express Seats programme Refunds
Refunds in the event of flight over sales for purchased optional products and services
Payments for damaged or delayed baggage
For questions, please contact your local American Airlines Reservations office
Will baggage services, check‐in or ticket counter services be affected?
No, there are no plans for reductions or changes in services.
Are non‐air travel items that I’ve already paid for through American Airlines as part of my travel still valid and available (Car, hotel etc.)?
Yes. The hotel/car/activities components of your purchase will remain valid. In addition, items such as preferred seats and One Day Admirals Club passes also will remain valid.
Are you planning to change your ticket prices?
Our ticket prices will not change as a result of the Chapter 11 filing. We are planning to continue to offer competitive ticket pricing
Are you planning to eliminate any routes or reduce the number of flights you offer?
We remain deeply committed to meeting your travel needs with the same standards of safe, secure and reliable service, and intend to maintain a strong presence in both domestic and international markets.
Will you continue to honour transportation vouchers?
Yes, we will honour them as usual.
What will happen to the AAdvantage programme?
The AAdvantage programme, including the elite programme and its various facets such as lifetime status, upgrades, and bonus mileage, are intact and will not be changing as a result of this Chapter 11 filing. Your AAdvantage miles will be honoured in accordance with our normal policies.
What will happen to American Airlines participation in the oneworld Alliance and its relationships with its codeshare partners or other partner airlines?
Our participation in oneworld and our relationships with our other partners remain unchanged. We will maintain the same strong partnerships during our Chapter 11 filing.
Can I still accrue miles and redeem mileage awards through oneworld and American Airlines frequent flyer air partners?
Yes, our partnerships with airlines such as British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines (JAL), LAN, Malév, Qantas, Royal Jordanian and S7 Airlines and others remain unchanged as a result of the Chapter 11 filing.
Are the Admirals Club facilities open?
Yes. Our Admirals Club facilities are open around the world and operating as usual.
Will any Admirals Clubs be closed in the future?
We remain committed to operating a worldwide network of Admirals Clubs, and will continue modernization initiatives currently underway, including extensive renovation of the New York LaGuardia club in Concourse D and construction of a new Admirals Club in Concourse C. Additionally, we are enhancing Admirals Club memberships by providing access to more lounges worldwide. Through expanded access agreements with select oneworld and other partner airlines, Admirals Club members are now able to experience premium lounges in destinations where American Airlines flies but does not have an Admirals Club, including Seattle, Portland, Budapest, Delhi, Beijing and Shanghai.
Can I continue to rely on American Airlines for my cargo shipping plans?
Yes. There have been no changes to American Airlines Cargo shipping policies and procedures. Any cargo that is currently in transit within our system will continue as scheduled. Efficient and reliable service remains our priority.
FREQUENTLY ASKED QUESTIONS FOR SUPPLIERS AND TRADING PARTNERS
Why did American file Chapter 11? Why did American file Chapter 11 now?
The Company filed for Chapter 11 in order to achieve a cost and debt structure that is industry competitive and assures American Airlines’ long-term viability and ability to continue delivering a world-class travel experience for its customers. As we have made clear with increasing urgency in recent weeks, we must address our cost structure, including labour costs, to enable us to capitalise on the foundational strengths we have put in place and secure our future. With a very substantial disadvantage in our costs compared to our largest competitors who previously restructured through Chapter 11, and combined with global economic uncertainty, volatile and rising fuel prices, and intensifying competitive challenges, the Board’s decision to take this step now was the necessary and right decision for our company.
We are committed to working as quickly and efficiently as possible to appropriately restructure American Airlines so that it can emerge from Chapter 11 well-positioned to compete effectively in the marketplace.
Will American continue to operate if you are in Chapter 11? Does this mean that American is going out of business?
Chapter 11 is designed to allow companies to restructure their finances while preserving day-to-day operations. It will be “business as usual” at American, and operations will generally continue uninterrupted.
What is the definition of a pre-petition or post-petition claim?
Goods received or services rendered before the Chapter 11 filing are considered pre-petition. Goods received or services rendered on or after the Chapter 11 filing are considered post-petition. Goods received or serviced rendered post-petition are given an administrative expense status under the Bankruptcy Code and will be paid in the ordinary course of business.
When will I be paid?
All pre-petition claims will be dealt with pursuant to our Plan of Reorganisation. Under U.S. Bankruptcy Law, American is generally not permitted to make payments for any goods or services that are received before the filing date without court permission. Any unpaid balances would usually be treated as general unsecured claims in the company’s Chapter 11 cases and, with limited exceptions, are satisfied only pursuant to an approved Plan of Reorganisation. It is impossible to predict before approval of the Plan of Reorganisation how much holders of general unsecured claim will receive.
How can I be sure American has enough money to pay for post-petition orders and shipments?
American has enough cash to stay in business and plans to emerge from Chapter 11 in a healthy condition. American is committed to paying for all post-petition goods and services in the ordinary course of business, as required by U.S. Bankruptcy Law.
What about future orders; will I be paid for those?
Any orders American places for delivery after the filing date will be given an administrative expense status under the Bankruptcy Code. We intend to pay for goods received and services provided after the petition date in the ordinary course of business.
What is the process once my proof of claim is filed?
Once the proofs of claim are filed, the Company will file its Plan of Reorganisation with the Court. After the plan is solicited pursuant to an approved disclosure statement, and assuming it is approved by the Court, the Company will begin making distributions pursuant to the terms of the Plan of Reorganisation. Typically at the time of approval, the Plan will have been negotiated with and have the support of the Unsecured Creditors Committee. This process normally takes several months, but can also last several years.
Will I need a claim form, or will I automatically be paid for the outstanding pre-petition amount owed to me?
Every creditor will receive a copy of a Bar Date Notice, which will be accompanied by a proof of claim form with instructions. If you have any questions regarding filing a claim, please consult with your own legal counsel.
Can I take back my goods?
Generally, no. The Company understands your frustration, but, with a very limited exception, bankruptcy law prohibits a seller from repossessing goods after a buyer has filed for Chapter 11. The Company recommends that you consult with your legal counsel before attempting to take any such action. Also, if you have a contract with the Company, the Bankruptcy Code generally requires that you continue to perform services or provide products unless otherwise ordered by the Court.
How do I get on the list of Critical Vendors?
Who qualifies as a Critical Vendor is determined based on a number of factors approved by the Court, and we do not have the ability to pay a creditor’s pre-petition claim who does not qualify as a Critical Vendor. If you are unsure about the status of your claim, you should consult with your own legal counsel.
I have a contract with AMR. Will the contract be honoured, assumed, or rejected?
The Company has only begun analyzing its contracts. Decisions about specific contracts or actions will not be made for some time. The Trading Partner Response Centre (TPRC) can assist with finding information regarding specific questions you have about particular contracts.
ADDITIONAL QUESTIONS FOR NON-U.S. BASED SUPPLIERS
As a non-U.S. based supplier, when will I be paid?
Any orders American places for delivery after the filing date will be given an administrative expense status under the Bankruptcy Code. We intend to pay for goods received and services provide after the petition date in the ordinary course of business.
American has filed a separate motion asking permission to pay certain foreign suppliers and vendors certain pre-petition obligations, which we anticipate the Court will approve. Once the Court approves the motion, please contact us at the Trading Partner Response Center to discuss your particular circumstances.
How do I get on the list of Foreign Vendors?
Who qualifies as a Foreign Vendor is determined based on a number of factors approved by the Court, and we do not have the ability to pay a creditor’s pre-petition claim who does not qualify as a Foreign Vendor. If you are unsure about the status of your claim, you should consult with your own legal counsel.
Will I need a claim form, or will I automatically be paid for the outstanding pre-petition amount owed to me?
Generally, any supplier that qualifies as a Foreign Vendor and is paid its pre-petition claim will not be required to submit a claim form. If you believe that you have not been paid in full you may file a proof of claim. If you have other questions, please consult with your own legal counsel.
For additional information, Trading Partners may call the Trading Partner Response Center (866-736-9011 inside the U.S. or 703-286-2757 outside the U.S.), or submit a question via email to email@example.com.
American Airlines took a necessary and responsible step to become a more efficient, financially stronger and competitive airline by filing for Chapter 11 reorganisation under United States law on November 29, 2011. We are confident that this action will better position American Airlines to deliver for the customers and communities we serve.
American Airlines will continue normal business operations throughout the reorganisation process, and our business will continue to be operated by our management team. The United States Chapter 11 process enables a company to maintain normal business operations while it establishes a competitive cost and debt structure. This action has no direct legal impact on any American Airlines operations outside of the United States.
American Airlines is conducting our business as usual, without interruption, throughout the 260 airports and more than 50 countries and territories where we fly, and we are committed to maintaining a strong presence in worldwide markets.
Below, we have provided answers to frequently asked questions.
What does American Airline’s bankruptcy/Chapter 11 filing mean for me as a customer?
It is business as usual at American Airlines. Safety and our customers remain our top priorities. We are committed to meeting your travel needs with outstanding safety and customer service.
Your travel plans are secure, and we intend to continue normal operations throughout our reorganisation process.
We are continuing to fly our regular flight schedule.
We are honoring all tickets and reservations as usual, and our policies regarding exchanges and refunds remain the same.
We will maintain our AAdvantage frequent flyer programme and other customer service programmes, and you can continue to enjoy the programmes’ benefits.
We remain committed to providing a superior customer experience with a focus on delivering what our customers value most – the newest fleet with our upcoming aircraft deliveries, network strength in the important cities of the world and world-class products, service and technology.
What is Chapter 11? What does it mean to voluntarily file for Chapter 11 reorganisation?
A U.S. Chapter 11 proceeding is different from bankruptcy in most other countries.Chapter 11 under U.S. law is a mechanism that usually focuses on the preservation and reorganisation of ongoing operating companies, not liquidation and the closing of businesses.
A Chapter 11 filing provides an operating company with the opportunity to restructure its debts and costs under court supervision with the goal of emerging from Chapter 11 as an ongoing business enterprise that is assured of long-term viability. A company in Chapter 11 largely maintains business-as-usual. Chapter 11 is not liquidation.
Does filing for Chapter 11 mean that American Airlines is going out of business?
No. American Airlines is not going out of business. Under Chapter 11, a company generally continues to conduct normal business operations.
What happened to customers when other major airlines filed for Chapter 11?
Other major airlines, such as United and Delta, continued their business operations, maintained their frequent flyer and other customer programmes, and continued to fly their regular schedules while they were in the Chapter 11 process.
Why did American Airlines file for Chapter 11?
This was a difficult decision, but it is the necessary and right path for our airline to take – and take now – to become a more efficient, financially stronger, and more competitive airline. American Airlines filed for Chapter 11 in order to achieve a cost and debt structure that is industry competitive and thereby well-positioned to assure American Airlines’ long-term viability and ability to continue delivering a world-class travel experience for our customers.
How long is the American Airlines Chapter 11 filing expected to take?
Our management team is committed to working as quickly and efficiently as possible to appropriately restructure our company so that we can emerge from Chapter 11 financially strong and well-positioned to assure our long-term viability as a more competitive airline.
Does American Airlines have enough money to pay its vendors, suppliers and business partners?
The Company believes that it has more than sufficient funds and it expects that its vendors, suppliers and other business partners will be paid timely and in full for goods and services provided during the Chapter 11 process in accordance with customary terms. See our “Information for Suppliers” section for additional information related to suppliers.