American Airlines a top carrier has file for Chapter 11 bankruptcy in effort to reorganize.
Being the 3rd Largest Carrier, American is attempting to remove high debt similarly seen by many of it competitors over the past 10 years. By report American has attempted to avoid taking these steps, but had fallen billions of dollars in to debt.
Several of American Airlines competitors such as Delta, United Airlines and Northwest Airlines filed for bankruptcy years back stating high debt, labor and fuel cost were major factors in there decision to file papers. The move according to Americans competitors have help to strengthen each of them in the Airline market.
Many Customers whom have purchase tickets voiced concerns and flooded the Airlines with question regarding the companies status. In an effort to calm fears, American Airlines stated customers would feel no impact of the debt reorganization and all Pre-purchase Tickets would be honored.