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Home » Business as usual at American Airlines Cargo following parent's bankruptcy filing
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Business as usual at American Airlines Cargo following parent's bankruptcy filing

November 29, 2011
Mark B. Solomon
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The cargo division of American Airlines said today it is continuing normal operations after American's parent, AMR Corp., filed today for protection under Chapter 11 of the federal bankruptcy code.

American Airlines Cargo, known as "AA Cargo," is the third largest cargo carrier among passenger airlines. Fort Worth, Texas-based American lost $884 million in the first nine months of 2011. It was the only major U.S. airline with international operations that had not filed for bankruptcy protection since the September 11, 2001, terrorist attacks. Southwest Airlines, which operates only in the domestic U.S. market, has also avoided bankruptcy.

Gary Schultheis, senior vice president airfreight, Americas for DHL Global Forwarding, said "it is business as usual" in his company's dealings with American since the filing. "They are not the first U.S. carrier" to file for bankruptcy protection, Schultheis said in an e-mail.

DHL Global Forwarding, the freight forwarding arm of DHL, is the world's largest airfreight forwarder. It is also American's largest cargo customer.

AMR said it will begin to revamp its management, labor relations, and operations and will continue normal flight operations at American and its American Eagle commuter unit.

AMR also said CEO Gerard Arpey has decided to retire. He will be succeeded by the company's president, Thomas Horton.

Transportation Air
KEYWORDS American Airlines Cargo AMR Research DHL
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    Marksolomon
    Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

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