The global recession, which seriously impacted the travel and transport industries hard, has hit one of America’s major airlines.

American Airlines and its parent company have filed for Chapter 11 bankruptcy protection in an effort to reduce costs and minimise debts.

American Airlines says it will continue to operate flights, honour tickets and accept reservations.

The airline, which serves 260 cities in fifty 50 countries and territories, says the filing will have no direct legal impact on any American Airlines operations outside the US.

The airline remains a member of the oneworld® alliance, and its codeshare partnerships are expected to continue with airlines such as British Airways, Cathay Pacific, Finnair, Iberia, Japan Airlines (JAL), LAN, Malév, Qantas, Royal Jordanian and S7 Airlines and others.

If you’ve clocked up any frequent flyer miles, fear not: the airline has stated that that its AAdvantage frequent flyer program is not affected.

Business as usual during bankruptcy proceedings

Parent company AMR has $4.1 billion in cash to ensure an uninterrupted supply of goods and services, as well as meet its payroll and employee benefits obligations, during the bankruptcy proceedings.

The bankruptcy filing will give the airline breathing space to revisit its cost structure and secure its future, and employee layoffs are expected.

Hoping to lead the airline back to profitability is newly announced Chairman & CEO Thomas Horton, who will also retain his title as company President. Horton takes over from Gerard Arpey, who, with impeccable timing, announced his decision to retire yesterday after thirty years with the company.