Expected operating cost (principally labor cost) improvements through new labor contracts in Chapter 11 bankruptcy proceedings; and Expected reduction in debt, lease, and retiree obligations in Chapter 11. Participation in the cyclical, price-competitive, and capital-intensive U.S. airline industry; Currently uncompetitive labor cost structure, and labor relations challenges involved in changing that; Currently heavy burden of debt, leases, and retiree obligations; and Potential further loss of profitable business traffic to larger competitors while in bankruptcy. The 'D' corporate credit ratings on Fort Worth, Texas-based AMR Corp. and its principal operating subsidiary, American Airlines Inc., is based on the companies' Nov. 29, 2011, Chapter 11 bankruptcy filing. The filing occurred several weeks after American's pilot union rejected a contract proposal but while
