AMR Corporation, the parent company of American Airlines, filed for bankruptcy protection yesterday in an effort to shed its debt burden and reduce costs after losing ground to competitors over the past decade.
Gerard Arpey, AMR’s long-serving chief executive, is also to retire, the company said.
The filing ends months’ of speculation about the future of the third-largest US carrier. Its shares have slumped after a run of quarterly losses even as its peers returned to profitability.
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