Airlines, American Airlines | featured news

American Airlines grounded flights across the country Tuesday because of an outage of its main reservations system. Thousands of passengers were stranded at airports and on airplanes.

A federal bankruptcy judge has at least temporarily blocked a proposed $20 million severance payment for the CEO of American Airlines as part of the company's merger with US Airways. The judge ruled Thursday that the proposed payment to CEO Tom Horton exceeded limits that Congress set for bankruptcy cases in 2005.

A judge on Wednesday approved AMR Corp's plan to merge with US Airways Group , a step toward creating the world's largest airline. AMR, parent of American Airlines and in bankruptcy since November 2011, must still construct a formal restructuring plan incorporating the merger that meets court and creditor approval before the airline can emerge from bankruptcy.

The subject of CEO compensation looks like it will get time under the microscope in American Airlines' Chapter 11 bankruptcy case. The U.S. trustee overseeing the bankruptcy case of American parent AMR has filed an objection to the $19.8 million severance package that current CEO Tom Horton is set to get when he leaves the company next year, according to Reuters. Also included in the objection are severance and retention payments slated for other company employees.

Even as it tries to emerge from bankruptcy and eyes a possible merger with US Airways, American Airlines is busy with a new project: a face lift. The carrier unveiled its first new logo and aircraft livery in decades on Thursday, with brighter colors, an “updated eagle” peeking out from a ribbon, a more contemporary font and bold red-white-and-blue stripes for its fleet’s tails.

Airline passengers can already get online 30,000 feet over Oklahoma. Soon U.S. airlines will offer Internet connections over the ocean, too. United, Delta, and American — the nation's three biggest airlines — said Wednesday that they're within weeks of having their first international flights with Internet service.

American Airlines is sending layoff warning notices to more than 11,000 employees although it expects job losses to be closer to 4,400.

Glenn Beck is boycotting American Airlines after he says he was treated rudely on a recent flight because of his political views. Beck, on his radio show on Tuesday, claimed that an attendant on a flight from New York City to Texas refused to open his drink for him or speak politely even though that courtesy was given to other passengers.

Flight attendants at American Airlines on Sunday accepted the company's last and final contract offer, a decision that will help the bankrupt carrier in its bid to cut labor costs.

The total fees billed by lawyers, consultants, investment advisers and the like working on American Airlines Inc.’s bankruptcy case have topped $100 million — and are sure to go much higher. With most professionals having now submitted their monthly bills through May, the fees have reached nearly $104 million, with $5.5 million more requested for reimbursement of expenses, according to a Dallas Morning News tabulation from court filings.