What's your take on American Airlines' recent bankrtupcy filing? Vote in our poll!
The bankruptcy was a must for AA in order to allow it to compete fairly with other airlines who, themselves, have been through banktruptcy. This move allows AA to renegotiate its contracts with vendors and unions. 37% of their costs are labor costs and should be negotiated down to the level of what other airlines like Delta and Jet Blue pay their employees. The airline industry has not shown a profit in the last 15 years at least. Individual airlines may have profited in different years, but the industry as a whole is labor and fuel intensive and its difficult to control fuel costs. Hopefully AA will get its house in order and continue to provide another choice in air travel.