The parent companies of American Airlines and its regional affiliate American Eagle are filing for Ch. 11 bankruptcy protection.
AMR Corp. and AMR Eagle Holding Corp. said Tuesday that they filed voluntary petitions to reorganize, saying it's in the best interest of the companies and its shareholders.
American says it sought protection to reduce its costs and debt to remain competitive in the airline industry.
American was the only major U.S. airline that didn't file for bankruptcy protection after the 2001 terrorist attacks.
American says labor-contract rules force it to spend at least $600 million more than other airlines.
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