blog details thumb

Turnaround story of American Airlines

  • 29/Oct/2024

American Airlines, one of the largest airlines in the world, filed for Chapter 11 bankruptcy in 2011, burdened by high labour costs, excessive debt, and intense competition. The turnaround management team developed a comprehensive restructuring plan that involved cost reductions, debt restructuring, and strategic alliances.

Our Insights

  1. Labor cost reductions: The Company negotiated new labour contracts with the airline's unions, resulting in significant cost savings and increased labour productivity.

    • Debt restructuring: American Airlines successfully negotiated with its creditors to restructure its existing debt, reducing its interest expenses and improving its financial flexibility.
    • Strategic alliances: The Company formed strategic alliances with other airlines, such as British Airways and Japan Airlines, to expand its route network, increase passenger traffic, and generate additional revenue.

NEED ANY HELP WITH Your Financial Management Solution?

At Infinite CFO Solutions, we’re here to support you with all your financial management needs. Our expert team is ready to provide tailored solutions to help your business thrive.

JUST DAIL +91 97026 93555