Chapter 11 does not exist in my country. What is it? Does this mean that we could be put into administration, or receivership, and liquidated? Are we going out of business?
We are not going out of business. A company that has sought protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code generally continues its normal operations while it reorganizes. The Chapter 11 process is focused on the preservation and reorganization of companies. A number of large companies, including several major airlines, have successfully emerged from Chapter 11.
Has American or American Eagle initiated Chapter 11 proceedings in any country other than in the U.S.?
No. American and Eagle have not initiated Chapter 11 proceedings in any country other than the United States.
How will employees outside of the U.S. be affected by the Chapter 11 filing? Will there be any changes in employee pay or benefits?
The terms and conditions of employment of non-U.S. based employees will continue to be governed by the law of the country in which they are based. However, given our need to achieve a more competitive cost structure, it is possible that there could be changes in the future. We do not know at this time what changes, if any, may occur. Any changes will be announced through our normal communications channels.
How will the Chapter 11 filing affect American's or American Eagle's operations outside the U.S.? Will tickets still be honored? What about the AAdvantage program?
We expect to maintain normal operations, to honor tickets and reservations as usual and to maintain our AAdvantage travel rewards programs in every market in which we choose to operate. American and American Eagle conduct business outside of the U.S. in accordance with multinational treaties covering international air travel.
Will there be any changes to American's or American Eagle's routes and services outside the U.S.?
At this point, no changes have been made as a result of the Chapter 11 filing, and it is premature to speculate about what changes, if any, may be made in the future.
Will any changes be made to the maintenance of our aircraft outside the U.S.?
The Chapter 11 filing does not affect our maintenance practices. The safety and security of our customers, employees, and assets remain the top priority for the Company.
Will there be management changes in any station outside the U.S.?
The Chapter 11 filing itself will not cause any such changes. It is possible that changes may occur during the normal course of business.
For general information about the restructuring for our customers, AAdvantage members, investors, suppliers, media and others, please visit aa.com/restructuring