This morning, AMR, the company that owns American Airlines, announced it would file for Chapter 11 reorganization in the U.S. bankruptcy court in New York City, explaining, "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." more ›

More troubles from the airline sector: United Airlines and Continental Airlines announced measures to cut costs through decreasing its workforces and total number of flights. This comes as other carriers have announced higher fares, less flights, and additional charges. more ›