AMR’s Bankruptcy

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.

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