Route to bankruptcy

Events outside American Airlines' control ultimately pushed the Fort Worth-based carrier into bankruptcy, but it was decisions by company executives that paved the way by leaving American outmaneuvered, analysts and experts say. Here are three turning points on the way to the Nov. 29 filing.

Market forces: Higher labor costs, a global economic slowdown, high fuel prices and a credit downgrade were factors in the board's decision to declare bankruptcy.

Executive pay/morale: "Pull Together -- Win Together" dissolved amid millions in stock bonuses that destroyed good will between executives and rank-and-file employees.

Strategic decisions: American delayed upgrading to a newer, more efficient fleet, and declined to pursue a merger, even as other airlines did.

Bankruptcy judge urges American, unions to negotiate deal

American Airlines attorney says talk of merging with US Airways is "smoke and mirrors" and that voiding labor contracts is necessary for survival.

Judge won't allow appeals shortcut for American's pilots union

Pilots say their contract can't be voided because it expired four years ago.

American Eagle may still be spun off, CEO says

A separation from American Airlines could be the best solution for shareholders, he says.

AMR debt holders hire advisers to study airline's plan, merger

Ad hoc creditor groups will meet first with American and then with US Airways.

American Eagle to cut 10 percent of its management in the next few months

In a letter sent to employees last week, American Eagle announced it will cut management positions by 10 percent over the next several months.

Judge will rule on American's union contracts by June 22

American Airlines asked a bankruptcy court to void the contracts.

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