American Airlines file for Chapter 11 protection

American Airlines' parent company AMR Corporation has filed for Chapter 11 bankruptcy protection in an attempt to cut debt and reduce labour costs. The company said it expected the airline to continue to operate throughout the bankruptcy process. American Airlines said business would continue as normal and it would honour all bookings and tickets. AA was the only major American airline not to file for bankruptcy after the September 11th terrorist attacks. The Texas-based corporation said labour rules forced it to spend $600m (£384m, 450m euros) more than other airlines on staff costs. American Airlines' chairman Thomas Horton said he was confident that the company would emerge in more robust health: "We are committed to maintaining a strong presence in worldwide markets." He added, "I am confident American will emerge even stronger as a global leader known for excellence and innovation".