Gov. Rick Scott says he has been assured that American Airlines will continue regular flights in Florida even though its parent company filed for bankruptcy on Tuesday.
American Airlines Vice President Kevin Cox has assured me that American Airlines is continuing to provide regularly scheduled flights and services throughout the reorganization process and will maintain its presence at the 12 airports in Florida, which offer flights to 116 destinations worldwide, Scott stated in a release.
I am relieved that the company will continue operations throughout this process, and I am optimistic that this reorganization will better position American Airlines to be a profitable company and enable them to add jobs in Florida.
American is the final large U.S. full-fare airline to seek court protection from creditors under Chapter 11 bankruptcy. Many industry watchers claim it was so vulnerable because it had put itself in such a disadvantageous position. American's disadvantage comes because of high labor costs -- which proves that in a competitive economy, unions cant do much for their members without sending companies into bankruptcy.
According to an editorial by Washington, D.C.-based Heritage Foundation, ever since 9/11, American Airlines had struggled to avoid heading into bankruptcy as its rivals did, in the hopes of securing favorable contract agreements with labor unions. Said Heritage, "The unions, though, had other ideas. Among their demands: Pilots wanted a 10 percent signing bonus followed by 7 percent raises in each of the next three years massive raises in the midst of a miserable economy."
Meanwhile, The Wall Street Journal reports that Delta, United, and US Airways are all operating with huge concessions. Those concessions include wages, benefits and work rules for pilots, flight attendants, mechanics and ground workers won through bankruptcy proceedings.
In South Florida, American Airlines and the regional carrier American Eagle Airlines combine to be the top carriers at Miami International Airport, with68 percent of the traffic.
Meanwhile, American Airlines isthe fourth largest at Fort Lauderdale-Hollywood International, and recorded about 6 percent of the traffic at Palm Beach International Airport, according to the Sun-Sentinel.
American is one of the largest employers in South Florida with more than 9,000 employees based here, the Sun-Sentinel reported.
Read more here.
American and American Eagle airlines offer direct flights from Jacksonville International Airport to Dallas/Forth Worth, Chicago O'Hare and Miami.
American Airlines links Chicago-O'Hare, Dallas/Fort Worth, Los Angeles, Miami, New York-JFK to Orlando International Airport.
Jim Turner can be reached at jturner@sunshinestatenews.com or (850) 727-0859 or (772) 215-9889. Nancy Smith can be reached at nsmith@sunshinestatenews.com or at (850) 727-0859.
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