American Airlines and two of its fellow Oneworld members, British Airways and Iberia, are offering special discounted fares between the United States and Europe as low as USD $250 each way, based on round-trip Economy Class travel purchased on AA.com. Taxes and fees are additional. Travel must originate in the United States.

Book now, as tickets for these special fares will go quickly and must be purchased by Jan. 24. Fares must be purchased at least seven days prior to travel. Sale fares are valid for outbound travel through April 1, 2012. All travel at these fares must be completed by Sept. 26, 2012. Return travel blackout dates are June 14 through Aug. 14, 2012. Other restrictions apply.

The special promotional fares are valid for travel between the U.S. and Europe Monday through Thursday; other days are subject to higher fares. Fares are valid for travel between the United States and United Kingdom Monday through Wednesday; other days are subject to higher fares. A Saturday night stay is required, and the maximum stay allowed is 180 days.

Here are some sample fares for Economy Class travel on the off-peak days identified above. The fares shown are each way based on round-trip travel and include surcharges. A portion of, or all travel for some itineraries, may be operated by American Airlines, British Airways, Iberia, American Eagle or the AmericanConnection carrier under Chautauqua Airlines:

Boston – London $250
Chicago – Paris $306
Dallas/Fort Worth – Dublin $310
Los Angeles – London $291
New York – Manchester, UK $250
New York – London $250
Miami – Madrid $287
New York – Brussels $308
New York – Rome $358

Travelers can check schedules and fares and book on www.AA.com. AA.com has the absolute lowest fares – guaranteed – available for American Airlines, American Eagle and AmericanConnection carrier flights.

Taxes, Fees and Conditions

Fares do not include (a) a federal excise tax of $3.80 per U.S. domestic flight segment, defined as one takeoff and landing, of a passenger’s itinerary; (b) up to $18 per round trip in local airport charges; and (c) September 11th Security Fee of $2.50 per enplanement originating at a U.S. airport. For international/Puerto Rico/USVI destinations, government taxes and fees of up to $240, varying by destination, are not included and may vary slightly depending on currency exchange rates at the time of purchase.

Fares are subject to change without notice. International fares are subject to government approval.

Ticketing/Travel – Tickets must be purchased seven days prior to departure but not later than 11:59 p.m. Jan. 24, 2012 (Central Time). Fares are valid for travel beginning Jan. 18, 2012, through April 1, 2012. A Saturday-night minimum stay is required, and a 180-day maximum stay is allowed. Tickets must be issued 24 hours after reservations are made.

Blackout Dates: Embargo dates are June 14 to Aug. 14, 2012.

Seats are limited. Fares may not be available on all flights. Schedules are subject to change without notice.

Fares are nonrefundable and nontransferable. Changes to your ticket may be made if you meet the restrictions of the new fare and pay up to a $275 fee plus any fare difference.

Changes must be made before your ticketed flight’s scheduled departure time. If you cancel your flight prior to the scheduled departure time, the ticket will be valid for one year from the date of issue for an unused ticket or one year from travel origination for a partially used ticket. If you do not cancel your flight prior to the scheduled departure time, the ticket has no value.

A portion of or all travel for some itineraries may be operated by American Airlines, British Airways, Iberia, American Eagle or the AmericanConnection carrier: American Eagle is operated by American Eagle Airlines, or Executive Airlines, which are wholly-owned by AMR Corporation, the parent company of American Airlines. AmericanConnection service is operated by Chautauqua Airlines, an independent contractor.

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AMR Corporation, the parent company of American Airlines, Inc. and AMR Eagle Holding Corporation, announced that in order to achieve a cost and debt structure that is industry competitive and thereby assure its long-term viability and ability to continue delivering a world-class travel experience for its customers, the Company and certain of its U.S.-based subsidiaries, including American and American Eagle, today filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

AMR’s Board of Directors determined that a Chapter 11 reorganization is in the best interest of the Company and its stakeholders. Just as with the Company’s major airline competitors in recent years, the Chapter 11 process enables American Airlines and American Eagle to continue conducting normal business operations while they restructure their debt, costs and other obligations.

American Airlines and American Eagle are operating normal flight schedules, and their reservations, customer service, and all other operations are conducting business as usual. Likewise, throughout the Chapter 11 process, American and American Eagle expect to continue to:

• Provide safe and reliable service;
• Fly normal schedules;
• Honor tickets and reservations, and make exchanges and refunds as usual;
• Fully maintain AAdvantage frequent flyer and other customer service programs, 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 its codeshare partnerships;
• Provide employee wages, healthcare coverage, vacation, and other benefits, without interruption; and
• Pay suppliers for goods and services received during the reorganization process.

These filings have no direct legal impact on American’s operations outside the United States. Thomas W. Horton, Chairman, Chief Executive Officer and President of AMR and American Airlines, said, “This was a difficult decision, but it is the necessary and right path for us to take – and take now – to become a more efficient, financially stronger, and competitive airline.

“We have met our challenges head on, taking all possible action to secure our long-term position. In recent years, even as the airline industry faced unprecedented challenges, American strengthened our domestic and global network; fortified our alliances with the best partners around the world; launched a transformational fleet deal that will give American the youngest and most efficient fleet in the industry; and invested in our product, service and technology to build a world class customer experience.

“But as we have made clear with increasing urgency in recent weeks, we must address our cost structure, including labor costs, to enable us to capitalize on these foundational strengths and secure our future.

Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable given the accelerating impact of global economic uncertainty and resulting revenue instability, volatile and rising fuel prices, and intensifying competitive challenges.

“Our Board decided that it was necessary to take this step now to restore the Company’s profitability, operating flexibility, and financial strength. We are committed to working as quickly and efficiently as possible to appropriately restructure American so that it can emerge from Chapter 11 well-positioned to assure the Company’s long term viability and its ability to compete effectively in the marketplace,” Horton stated.

Horton continued, “Throughout the restructuring process, as always, our customers remain our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us. We intend to maintain a strong presence in domestic and international markets, including our cornerstones in Dallas/Fort Worth, Chicago, New York, Miami and Los Angeles.

As we and all airlines routinely do, we will continue to evaluate our operations and service, assuring that our network is as efficient and productive as possible. ”Achieving the competitive cost structure we need remains a key imperative in this process and, as one part of that, we plan to initiate further negotiations with all of our unions to reduce our labor costs to competitive levels.”

“American Airlines has a strong, proud history and we will have a successful future. Working through this difficult, but necessary action and process, I am confident we will succeed in enhancing our reputation as a global leader known for excellence and innovation, a travel partner customers seek out, and a carrier that serves communities throughout the world,” Horton concluded.

The Company has approximately $4.1 billion in unrestricted cash and short-term investments. This cash, as well as cash generated from operations, is anticipated to be more than sufficient to assure 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.

Because of the Company’s current cash position, the need for debtor-in-possession financing is neither considered necessary nor anticipated. American is filing motions with the Court seeking interim relief that will ensure the Company’s continued ability to conduct normal operations, including the ability to:

• Provide employee wages, healthcare coverage, vacation, and other  benefits without interruption;
• Honor pre-petition obligations to customers and continue customer programs including American’s AAdvantage frequent flyer program;
• Pay for fuel under existing fuel supply contracts, and honor existing fuel supply, distribution and storage agreements; and
• Assume and honor contracts relating to interline agreements with other airlines.

The article American Airlines File for Chapter 11 Reorganization appeared first on The Toonari Post - News, Powered by the People!.

American Airlines, Inc. announced that its parent company, AMR Corporation, and certain United States-based subsidiaries today voluntarily filed for Chapter 11 reorganization under United States law. American took this action in order to achieve a cost and debt structure that is competitive in the airline industry so that it can continue delivering a world-class travel experience for its customers.

American expects to continue normal business operations throughout the reorganization process, and the business will continue to be operated by the Company’s management. The United States Chapter 11 reorganization 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 the United States.

American Airlines is operating normal flight schedules, honoring tickets and reservations as usual, and making normal refunds and exchanges. American’s AAdvantage frequent flyer program is not affected. American remains part of the oneworld alliance, of which it is a founding member, and all of its codeshare partnerships continue, enabling customers to earn and redeem miles on convenient flight options worldwide.

“American’s customers are always our top priority and they can continue to depend on us for the safe, reliable travel and high quality service they know and expect from us,” said Thomas W. Horton, Chairman, Chief Executive Officer and President of AMR and American Airlines.

“American serves 260 airports in more than 50 countries and territories, and we are committed to maintaining a strong presence in worldwide markets. I am confident American will emerge even stronger as a global leader known for excellence and innovation, a travel partner customers seek out, and a carrier that serves communities throughout the world.”

Passenger risks

Many passengers are left with questions as to what protections they have in the event American Airlines fails. FlyersRights.org have produced the following advice:

• There is risk that your ticket will not be honored by AA should their restructuring fail.
• If you have frequent flyer miles, book your trip now, preferably on a code-share partner of AA that is not at risk of bankruptcy.
• Ticket holders are unsecured creditors, last on the list of creditors, so if AA shuts their doors there will be little to NO relief for affected ticket holders.
• Reciprocity rules, under which airlines were required to honor other airlines’ tickets in cases such as this, expired in 2007. Ticket holders will be left holding the bag if AA does fall.
• Some airlines may have insurance to guard against passenger loss in this situation, but we don’t know if American Airlines has insurance that would cover the kind of volume that AA would have to cover if they fail entirely.
• American Airlines’ refusal to take bailouts was admirable. They wanted complete management control with no government intervention, but it appears that need for control was fatal.
• It appears that they filed bankruptcy because of high labor costs and extremely large management bonuses.   FlyersRights hopes that other air carriers will take note.

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