American Airlines will continue to operate its regular flight schedule out of Trinidad despite its parent company, AMR Corp, filing for Chapter 11 Bankruptcy yesterday in the United States Bankruptcy Court for the Southern District of New York.

Chapter 11 is the chapter of the United States Bankruptcy Code providing (generally) for reorganisation of a debtor's business affairs and assets.

It is generally filed by corporations which require time to restructure their debts. A Chapter 11 debtor usually proposes a plan of reorganisation to keep its business alive and pay creditors over time.

In a release issued through Corporate Communications out of Fort Worth, Texas, yesterday, the Company said that American Airlines, American Eagle and all other subsidiaries will be operating normal flight schedules, honouring all tickets and reservations, maintaining high customer service levels and AAdvantage programme, and continuing employee pay and benefits.

The company has US$4.1 billion in cash to ensure uninterrupted supply of goods and services during proceedings and said that the bankruptcy filing will have no direct legal impact on the airline's operations outside the United States.

Company chairman, president and chief executive officer Thomas W Horton, said that while it was a difficult decision to file for bankruptcy, it was necessary to become more efficient, financially stronger, and competitive.

He said the company's current cost structure put them at a disadvantage against competitors, all of whom had restructured their costs and debt through Chapter 11 reorganisation.