As a long-time resident of Dallas/Fort Worth, I remember when American Airlines announced they were relocating from New York to Dallas. It was exciting times and that relocation was a key part of the economic boom of the past 30 years for North Texas. Thus, the news this week of their bankruptcy was a bit of a downer, although it wasn’t a surprise.
When your company is in a struggling industry with high capital costs and price competition is rampant and you’re dealing with extremely high labor and material (fuel) costs and you are highly regulated, it’s never a pretty picture (ask anyone in the printing industry). Given that many of AMR’s major competitors (US Air; United; Delta) had already gone through bankruptcy reorganization, it was just a matter of time until AMR faced the inevitable.
Although we’re dealing with issues on a totally different scale, I see lessons that our industry can learn from this debacle, but I’m saving that for next week. Stay tuned.