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NBC Nightly News: What the American Airlines Bankruptcy Means for You

Visit msnbc.com for breaking news, world news, and news about the economy

Travel + Leisure's international editor, Mark Orwoll, makes an appearance to comment on American Airlines' recent news that it is filing for Chapter 11. Watch to find out what the airline's new status means for travelers.

American Airlines Files for Bankruptcy

REUTERS |  American Airlines and its parent company AMR Corp filed for bankruptcy on Tuesday to cut costs and combat soaring fuel prices and dampened travel demand.

American Airlines was once the largest U.S. carrier, but is now third behind United Airlines and Delta Air Lines. It had been the only major U.S. airline to avoid a bankruptcy filing in the last decade and consequently has the industry's highest labor costs.

The airline hopes bankruptcy will cut labor costs after it failed to reach a deal with pilots and other work groups after years of fruitless negotiations. Analysts question, however, whether restructuring under Chapter 11 of U.S. Bankruptcy Code will address operational shortcomings and bolster revenue.

The filing also leaves AMR vulnerable to unsolicited takeover bids by rival airlines in the rapidly shrinking airline industry.

"It completes the cycle," said Helane Becker, an analyst with Dahlman Rose & Co. "Every major airline in the united States has filed for Chapter 11."

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American Eagle First Airline Charged for Tarmac Delays

CNNMoneyAmerican Eagle suffered a dubious distinction Monday, becoming the first airline to get fined for excessive tarmac delays, according to the U.S. Department of Transportation.

The government agency fined American Eagle, a subsidiary of American Airlines' AMR Corp., (AMR, Fortune 500) a a civil penalty of $900,000 for delays that occurred earlier this year at Chicago O'Hare International Airport.

Airlines are penalized for tarmac delays exceeding three hours. The department said this is the first time an airline has been fined since the rules on tarmac delays were imposed in April 2010.

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How to Book Airline Award Tickets

Frequent-flier miles have gotten a bad reputation: easy to earn, hard to burn. But the truth is, finding an award seat actually got a little less difficult this year, according to a study by consulting agency IdeaWorks, which did trial runs on 24 frequent-flier programs worldwide by attempting to book award tickets on each for travel between June and October 2011. In the programs tested, availability rose to 68.6 percent, up from 66.1 in 2010. But your chances of snagging a free seat depend on which program you’re using. Low-fare airlines around the world scored best. Among the U.S. carriers, Southwest is the easiest to book on, with a 99.3 percent availability rate.

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Singapore Airlines 5-Day Sale: $888 Roundtrip to Asia

singapore airlines

Singapore Airlines, voted our readers’  favorite international airline in this (and most every) year’s World’s Best Awards, just announced a brief but exciting sale to inaugurate its new A380 service from New York: Fly round trip from JFK to Frankfurt for $599 or to Singapore for $888, including *all* taxes and fuel surcharges!

Tickets must be booked between now and November 7 for travel between January 16 and March 31, 2012. Fares to other destinations in Southeast Asia (including Tokyo, Beijing, Hong Kong, and Seoul) are also available for $999, again with no additional taxes or fees tacked on.

For more information or to book, please visit Singapore Airlines.

Photo courtesy of Singapore Airlines


Heathrow’s Personal Transit Pods

Passport Blog - BBC Travel |  This week, Heathrow Airport introduced a new form of transport that will look familiar to fans of mid-century science fiction: emission-free, battery operated personal transit pods.

Instead of waiting for an airport shuttle, Heathrow passengers can hop in one of the pods that arrive every 34 seconds and travel along tracks between the terminals and car parks.

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Korean Air’s New In-Flight Duty-Free Shops

air travel Korean Air's In-Flight Duty-Free Shops

Good news for shopaholics: Korean Air has scrapped 13 seats on each of its new Airbus A380’s to install in-flight duty-free stores—the first of their kind. These walk-in shops carry Lancôme beauty products, Longchamp totes, Crown Royal whisky, and more. Just make your picks, and they’ll be delivered before touchdown.

Illustration by Kagan McLeod

Proposed Airline Ticket Tax Bump Has Tempers Soaring

USA Today |  President Obama is asking passengers to pay a few dollars more in taxes for an airline ticket — which already is about 20% taxes and fees. And the travel industry is in an uproar about it.

Big airlines say people would buy fewer tickets if Congress approves the president's proposal to help cut the deficit and pay for the nation's aviation system.

Regional airlines, which carry more than half of domestic fliers each day, say it could force them to pull out of small cities.

Small-city airports worry about that.

And some travelers and consumer groups say it's just unfair to ask passengers to pay more on top of the taxes and fees that government and airports already charge.

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Virgin Atlantic's 72-Hour L.A.-London Fare Sale

201109-b-virgin-1jpg

I just got an email from Virgin Atlantic's P.R. rep announcing a three-day fare sale starting this morning and going through Thursday on airfare between Los Angeles and London. Travel dates are January 10 - March 26. The email said the fares were as low as $296 each way based on a round-trip purchase plus up to $250 in government taxes and fees. That would be a total of $842. But on the Virgin Atlantic website I found a total round-trip airfare of $711 for a departure on February 20 and a return on February 27. That same fare was also available on other travel dates. That's a very good airfare from L.A. The best competitive price on those same travel dates I found using Kayak was $827 on Delta, which is a decent fare in itself.

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Pan Am Debuts Sunday! Plus: Our Q&A with Show Creator Jack Orman

Imagine a time when air travel included white-gloved stewardesses (flight attendants, who?) serving caviar on board, giving bottles of champagne to fliers just for being nice, and gracing the cover of TIME.

In the modern world of exorbitant fees for checked bags and extra leg room, it’s nearly impossible to believe that a period like that ever existed, but ABC’s new show Pan Am—which debuts Sept. 25 at 10 p.m. and stars Christina Ricci—brings that 1960's Jet Age era of air travel to life. (Think of it as Mad Men, 30,000 feet in the air.)

Here, T+L gets on board with the show’s creator Jack Orman (of JAG and ER fame).

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