American Airlines Files for Bankruptcy
BLITZER: American Airlines is filing for Chapter 11 bankruptcy protection. Lisa Sylvester is following the story for us. Lisa, the airline is presenting this as a mostly business as usual decision. Maybe usual, maybe not so usual.</s>SYLVESTER: That's right, Wolf. Well, if you are holding on to an American Airlines ticket, don't worry. That ticket is still good. As Wolf said, it will be business as usual, at least in the short term. Customers won't notice much of a difference. But in the longer term, there may be some changes ahead.</s>SYLVESTER (voice-over): Here's the bottom line for customers. American Airlines says their planes will still fly, their tickets will still be honored. And if you have frequent flyer miles or elite status on American, that will remain intact. But American Airlines' new CEO says labor costs, high oil prices, and global economic volatility left the company no choice but to file for bankruptcy protection.</s>THOMAS HORTON, CEO & PRESIDENT, AMERICAN AIRLINES: This year, we're going to pay almost $2 billion more for fuel than we did last year, so that was -- you know, that was a kick in the teeth we didn't need this year. But it's a reality, and our company is facing reality, and we're going to go forward.</s>SYLVESTER: American Airlines' competitors have gone down this path before. Delta, United and Northwest have all filed for bankruptcy in recent years. American Airlines says its labor costs were $800 million a year higher than other air carriers.</s>RAY NEIDL, AIRLINE INDUSTRY ANALYST, MAXIM GROUP: They're the only big airline not to have gone through bankruptcy, so they have stuck with the old legacy costs, and they couldn't get out of that voluntarily with their union people. So now they're going to have to do it under the supervision of a judge.</s>SYLVESTER: In the short term, customers won't notice a difference. But American's Chapter 11 filing will cause some changes in the months ahead. Employees will likely be asked to make pay and pension concessions. American Airlines may consolidate some of its routes. And there is a very real possibility American could follow the path of the other major carriers like United and Continental, Northwest and Delta, and shop around for another airline to merge with. George Hobica of airfarewatchdog.com says that would directly impact passengers.</s>GEORGE HOBICA, AIRFAREWATCHDOG.COM: Airline consolidation means that airfares are going to go up, and in some cases smaller cities are going to lose air service all together. There's much less competition than the past, where perhaps two airlines served a route, now there's only one, and obviously that airline can raise fares to any level they want.</s>SYLVESTER: Now, the people who will feel an immediate effect are the shareholders and the creditors, those holding on to unsecured debt. They are the ones who are going to be the big losers with this bankruptcy filing -- Wolf.</s>BLITZER: Yes. Stuff happens, I guess, in the airline business, but people are worried because they've got to travel, especially getting ready for Christmas and New Year's.</s>SYLVESTER: Yes. The bottom line, what they want to know is, is that ticket good if I've got an American Airlines? It's fine. American Airlines planes are going to be taking off. And the frequent flyer miles, many people are really concerned about that. That's going to be intact as well -- Wolf.</s>BLITZER: Lisa, thank you. Let's go to Jack. He's got "The Cafferty File" -- Jack.</s>CAFFERTY: The question this hour: The United States is 28th in life expectancy. What's killing America? Gary, in Arizona, "Diet and exercise, Jack. Simple as that. We eat the wrong things, we don't exercise. We've become a fat, slovenly bunch who smoke, drink, use drugs, and generally abuse life with dumb habits. We've become our own worst enemy when it comes to living a long life." Rick writes, "If you have to ask, you haven't been looking at people. Obesity." Jan, in Washington, "Food, drink, and a lack of affordable health care. A lot of the most affordable food is loaded with carbs and sugars. A large share of shopping carts leaving supermarkets have cases of beer, soda and chips in them. The store flyers and mailers have far better sales on these items than on fresh fruits and vegetables." Gordon, in New Jersey, writes, "Overeating, TV, corporate greed, and a medical industry that caters first to patients with money, second to patients with good benefits, and third -- well, the funeral industry takes care of them." Jay writes, "Easy one. Putting the profits above the well-being of fellow citizens. Every other decent country on earth has figured out that health care is not the moral place to try to make a buck. Selfish greed is what's killing America." Bob, in Maryland, writes, "It's easy. As I'm sitting here eating a hot dog for dinner, I'm sure my counterpart in Japan is eating some nutritionally-rich sushi. We just have bad habits and we're lazy. Maybe the recession will get more Americans off their butts and rethinking our choices." And Terry, in Indiana, writes, "Speaking of life expectancy, Jack, who's going to take your place?" Thank you. If you want to read more on this, you can go to my blog, CNN.com/caffertyfile, or through our post on THE SITUATION ROOM'S Facebook page. And I'll be here tomorrow.</s>BLITZER: He must be a good friend of yours, that last reader, viewer, whatever he is. You know him?</s>CAFFERTY: That's cold. No, I don't know him.</s>BLITZER: Yes. Tough crowd you're hanging out with over there, Jack. Never easy when you're out there, right?</s>CAFFERTY: That's true. Well, at my age, it gets tougher all the time.</s>BLITZER: Yes. I'm going to go get some delicious sushi myself, I think.</s>CAFFERTY: I'm going to eat a hot dog.</s>BLITZER: No hot dog, sushi. Very healthy. Thanks very much, Jack.</s>CAFFERTY: See you.</s>BLITZER: So, when is the last time you saw a guy in a skin-tight suit flying -- yes, flying -- just outside the window of your airplane? Jeanne Moos is coming up with a breathtaking report on an aviator known as "Jetman."