AMR Corporation (PINK:AAMRQ) says software hit not external – LCC

Northern, WI 04/19/2013 (usastockreport) – The American Airlines fleet had been grounded and subsequently, over 1,000 flights had to be cancelled. Tom Hornton, the Chief Executive Officer of AMR Corporation (PINK:AAMRQ) (Current: $3.87, Up by 0.26%)’s unit, American Airlines said that the possibility of outside interference being the cause of the malfunction in software which led to this grounding, has been eliminated. In an interview he said that the Airline understands the cause of the failure and that all external threats have been ruled-out. The investigation is in progress and some further testing is also being conducted.

No replay

He said that American Airlines is highly confident about the fact that there will be no recurrence of the issue. However, Horton declined any comment on the exact cause of the disruptions that had taken place in flight operations and reservation systems on April 16. Both, the Fort Worth, Texas-based American as well as its regional partner, American Eagle are units of AMR Corporation and had cancelled flights due to the shutdown. Horton said that American Airlines will be exiting from bankruptcy protection this year and will be merging with US Airways Group Inc (NYSE:LCC) (Current: $16.16, Up by 0.37%). He added that this particular incident should in no way mar the decision to use American’s OS, post the merger.

The merger plans…

Doug Parker, the US Airways Chief Executive Officer said that his decision leans towards using the systems at the larger American in the joint venture as long as there is no compelling reason that will prevent him from doing so. Horton said that the contention about an external cause came into the picture in light of the Boston bomb explosions. Post the merger, Parker will be taking-over reins as the CEO for American. The combined airline will be the biggest in the world by passenger traffic. Today, AMR reported its first quarter profit of $8 million with the exclusion of $349 million in one-time items and bankruptcy costs. Last year the company’s losses had been to the tune of $248 million under the same terms a year earlier and its revenue had risen to $6.1 billion with a 1 percent rise.

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