Alitalia Gets Reprieve as Pilots Back Takeover Deal

Airline will emerge from bankruptcy with fewer workers

(AP) - The parent of American Airlines wants to eliminate about 13,000 jobs—15% of its workforce—as the third-biggest US airline remakes itself under bankruptcy protection. The company aims to cut labor costs by 20%, and will soon begin negotiations with its three major unions. AMR Corp. CEO Thomas W. Horton said today that the company hopes to return to profitability by cutting spending by more than $2 billion per year and raising revenue by $1 billion per year. More»

Parent firm says voluntary move best choice for firm

(AP) - American Airlines and American Eagle's parent companies are filing for bankruptcy protection. AMR Corp. and AMR Eagle Holding Corp. said today that they filed voluntary petitions to reorganize, saying it's in the best interest of the companies and its shareholders. American says it sought protection to reduce its costs and debt to remain competitive in the airline industry. American was the only major US airline that didn't file for bankruptcy protection after the 2001 terrorist attacks. American says labor-contract rules force it to spend at least $600 million more than other airlines. Fox News adds that rising jet fuel costs also contributed to the airline's massive debt. More»

Delta and American vie for piece of restructuring JAL

(AP) - Japan Airlines filed for bankruptcy today in one of the nation's largest corporate failures, entering a restructuring from which it seeks to emerge leaner, smarter, and free of crippling debt. Asia's biggest carrier by revenue, staggering under a $25 billion debt mountain, JAL will slash nearly 16,000 jobs, cut routes, and shift to more fuel-efficient aircraft as part of its restructuring. More»

(NEWSER) - United Airlines’ dismal service and financial stature may soon send it to Chapter 11, but that doesn’t mean it isn’t a “teachable moment,” Shaun Rein writes in Forbes. Herewith, three lessons:

• Loyal customers return: "Consumers are more price sensitive in this economy, and they are trading down, but it's still a great time to capture loyalty," Rein writes. "People don't want to waste money on brands that fail to meet their expectations."

(AP) - United Auto Workers members have ratified a package of concessions designed to reduce General Motors' labor costs. Union president Ron Gettelfinger said today 74% of GM's production and skilled-trade workers voted in favor. The vote comes before the company's expected Chapter 11 bankruptcy protection filing Monday. Bankruptcy experts say having an agreement in place before the filing will help move the process through court more quickly. More»