AMR Corporation
| Company type | Public |
|---|---|
| Industry | Airline holding company |
| Founded | 1982 |
| Defunct | December 9, 2013 |
| Fate | Merged with US Airways Group to form American Airlines Group |
| Headquarters | Fort Worth, Texas , United States |
Area served | Worldwide |
Key people | Gerard Arpey (former Chairman and CEO), Thomas W. Horton (former President and CEO), Doug Parker (CEO of merged entity) |
| Products | Airline services (American Airlines, American Eagle Airlines, AmericanConnection, Executive Airlines) |
AMR Corporation was an airline holding company based in Fort Worth, Texas, serving as the parent entity for American Airlines, American Eagle Airlines, AmericanConnection, and Executive Airlines. In November 2011, AMR sought protection under Chapter 11 bankruptcy. The company emerged from bankruptcy on December 9, 2013, simultaneously revealing plans to merge with US Airways Group, resulting in the creation of the American Airlines Group.
History
Founded in 1982 amid American Airlines' transformation into a Delaware corporation, AMR Corporation derived its name from American Airlines’ previous NYSE ticker symbol. In 1984, through subsidiary consolidations, AMR formed AMR Energy Corporation to pursue oil and natural gas development. Two years later, in 1986, AMR purchased ACI Holdings—the parent company of Air California—for $225 million.
After enduring three years of losses, AMR returned to profitability by 1994, aided partly by supplier consolidation efforts that cut supplier numbers nearly in half between 1995 and 1997, generating substantial cost reductions. In 1998, the company divested three subsidiaries to concentrate on its primary airline business. The landmark acquisition of Trans World Airlines (TWA) in 2001 for $742 million propelled American Airlines to become the largest airline worldwide, overtaking United Airlines.
On November 29, 2011, AMR filed for Chapter 11 bankruptcy protection while holding $4 billion in cash, aiming to restructure its debt and cost base for sustainable operations. Chairman and CEO Gerard Arpey stepped down and was succeeded by president Thomas W. Horton. This filing represented the final Chapter 11 bankruptcy among legacy U.S. carriers.
Since 1990, AMR was reportedly the 100th airline to enter bankruptcy proceedings. On December 2, 2011, it was removed from the Dow Jones Transportation Average and replaced by Alaska Air Group.
As part of its turnaround plan announced in February 2012, AMR revealed intentions to eliminate 13,000 jobs—approximately 18 percent of its workforce—including a reduction of 15 percent in management roles. These measures targeted a $2 billion (20%) cut in operating expenses alongside a $1 billion boost in revenue. Since 2001, the company had accumulated losses totaling $11 billion. Horton emphasized that these actions followed losses of $884 million during the first nine months of 2011 and an additional $904 million in December alone.
Merger with US Airways
In January 2012, US Airways Group expressed interest in acquiring American Airlines. By March, AMR’s CEO signaled openness toward a potential merger. US Airways estimated that combining the two carriers could yield annual synergies exceeding $1.5 billion through revenue enhancements and cost savings.
By April 2012, labor unions representing American Airlines employees endorsed the merger proposal. In July, American announced capacity cuts driven by aircraft groundings and pilot retirements, including retiring between 35 and 40 regional jets as well as phasing out its Saab turboprop fleet operated by regional affiliate American Eagle.
By September 2012, American's unions explored merger opportunities with several airlines including US Airways, JetBlue, Alaska Airlines, Frontier, and Virgin America. US Airways confirmed support for extending American’s bankruptcy exclusivity period and acknowledged its position as both a creditor and a prospective merger partner. On August 31, US Airways CEO Doug Parker disclosed signing a nondisclosure agreement to review financial details and assess a possible merger.
On February 14, 2013, AMR and US Airways officially announced their merger plans to establish the world’s largest airline. The merger finalized in Q3 2013 with AMR bondholders holding a 72% stake and US Airways shareholders owning 28% of the combined entity. The airline continued operating under the American Airlines brand but adopted US Airways’ executive leadership team led by CEO Doug Parker. The headquarters consolidated in Fort Worth, Texas. While Parker replaced Thomas W. Horton as CEO, Horton remained chairman; US Airways president Scott Kirby assumed the role of president for the merged company.
Subsidiaries and Divisions
- American Airlines Inc
- Admirals Club, Inc.
- American Airlines de Mexico, S.A.
- American Airlines de Venezuela, S.A.
- American Airlines Marketing Services LLC
- American Airlines Realty (NYC) Holdings, Inc.
- American Airlines Vacations LLC
- American Aviation Supply LLC
- Packcall Limited
- AA Real Estate Holding GP LLC
- AA Real Estate Holding L.P.
- TransWorld Airlines (TWA, LLC)
- Reno Air, Inc.
- American Airlines IP Licensing Holding, LLC
- Texas Aero Engine Services, L.L.C (TAESL)
- Americas Ground Services, Inc.
- Aerodespachos de Colombia, SA (AERCOL SA)
- Caribbean Dispatch Services, Ltd.
- American Airlines División de Servicios Aeroportuarios (R.D.), S.A. (DSA)
- International Ground Services, S.A. de C.V. (IGS)
- AMR Eagle Holding Corporation
- American Eagle Airlines Inc., regional feeder carrier for American Airlines
- Eagle Aviation Services
- Executive Airlines Inc., managing American Eagle's ATR fleet
- Executive Ground Services, Inc.
- Business Express Airlines, Inc.
- Avion Assurance Ltd.
- PMA Investment Subsidiary, Inc.
- SC Investment, Inc., holding under 0.5% stake in Aerolíneas Argentinas
- AMR held a 20% equity interest in the now-defunct Aeroperlas
Fleet
- AMR Corporation Fleet
As of April 2012, American Airlines' fleet consists of 605 aircraft with an additional 451 on order. This includes plans for 260 Airbus A320neos and 200 Boeing 737s over a five-year span. Furthermore, options exist for acquiring up to 465 more aircraft through 2025.
American Eagle Airlines operates a fleet of 284 planes, with 39 aircraft managed by Executive Airlines.
- Non-AMR Corporation Fleet
Chautauqua Airlines operates fifteen aircraft under the American Connection brand; although independent, it provides service for American Eagle.
Aviation Business Subsidiaries and Divisions
- American Airlines Cargo
- American Airlines C.R. Smith Museum, a commercial aviation museum located in Fort Worth
- American Airlines Facilities
- American Airlines Travel Academy, offering training programs for travel industry professionals
- AmericanConnection (operated by independent Chautauqua Airlines)
- American Airlines Flight Academy, dedicated to pilot training
- Flagship University, a corporate training and conference center situated in Fort Worth
American Airlines Foundation
The AMR/American Airlines Foundation is sponsored by AMR and supports philanthropic initiatives in key regions such as the Dallas/Fort Worth Metroplex, Chicago, Illinois, Miami, Florida, Saint Louis, Missouri, and San Juan, Puerto Rico.
Property
AMR Corporation possesses a five-story townhouse known as London Residence LON6526 located in Kensington, London. Valued at $30 million in 2011, it was acquired in 1992 for £6.3 million ($9.8 million) and serves as executive housing overseas. This property was among eight assets listed during AMR’s Chapter 11 bankruptcy proceedings and was identified as a potential asset for sale to assist in financial restructuring. Industry analysts compared it to other corporate luxury holdings unlikely to be retained through reorganization.