The Associated Press
Updated: 9:26 p.m. Monday, May 14, 2012
Published: 3:06 a.m. Monday, May 14, 2012
BROWNSVILLE, Texas — A Texas businessman cruised the Internet looking for sexually explicit chats with teenage girls and collecting images depicting child pornography, federal prosecutors told a jury Monday as they outlined their case against Robert L. Hedrick.
But defense attorneys said Hedrick wasn't the person in those chats or sending and receiving the images, suggesting that the founder of Pan American Airways was framed and likely targeted by powerful enemies with the motivation and money to do so.
"Our evidence will develop why various people had reasons to set Mr. Hedrick up," defense attorney Ed Stapleton told jurors, adding that the conspiracy played out as part of a "high stakes game of money and power."
Hedrick is charged with five counts related to child pornography and sexual exploitation of children. If convicted, he could face up to 20 years in prison on just one count of distributing child pornography.
Assistant U.S. Attorney Carrie Wirsing called Hedrick's attempts to get teenage girls to send nude photos of themselves "pervasive" and "unrelenting." She noted that many of the roughly 2,400 images found on three hard drives seized at Hendrick's home last summer depicted child pornography.
Prosecutors said police in Wisconsin and Louisiana posing as 13- and 14-year-old girls had sexually explicit online conversations and received graphic photos from someone registered at an Internet address traced to Hedrick's computer. Prosecutors also have video of a man masturbating that was sent to a police detective posing online as an underage girl and recorded phone conversations between the same female detective in Louisiana and a man they said is Hendrick.
Stapleton told jurors Monday that it was his client in the video, but said it was a video Hedrick made for his wife as part of his marriage counseling and not something he would ever send to anyone. He also acknowledged that jurors would hear Hedrick's voice on recorded calls, but noted that once a voice is digitally captured, it can be manipulated to say anything.
Also hanging over the trial: pornographic images that both sides concede will shock jurors and transcripts from online conversations that start barely innocent but within minutes turn explicitly sexual.
One of those transcripts shows that police detective Christopher Cybell in Menomenee Falls, Wis., was signed into a chat room in March 2010 with the screename "tinare2721" when, shortly after 9 p.m., he received an instant message. The message was from an account he said was traced to the 61-year-old Hedrick. The person sending the message identified himself as a 47-year-old man and asked if "tinare2721" wanted to chat.
Cybell quickly responded, identifying himself as a 13-year-old girl.
Within seconds the response came: "I have a daughter 18 I like chatting with teen girls. Do you have a pic of u?" Within 30 minutes, the conversation became explicitly sexual.
Other chats occurred throughout 2010, which is when Hedrick launched Pan American Airways based at the Brownsville-South Padre Island International Airport.
Stapleton told jurors that Hedrick had a 60 percent ownership stake in the airline. He argued that enemies who could be conspiring against him include other shareholders interested in wresting away control of the business or competitors angry at Hedrick for trying to keep them out of the market. He admitted he wouldn't be able to prove who framed his client.
Hedrick has been held without bond since his arrest in July.
.By Emily Roach Palm Beach Post Staff Writer
Updated: 11:00 a.m. Tuesday, May 15, 2012
JetBlue launched its first direct flight to Puerto Rico from Palm Beach International Airport this morning with speeches and water cannons.
With the airline opening a terminal in the Caribbean hub, it means a bigger gateway to the islands for Palm Beach County and Treasure Coast travelers, tourism and airline officials said.
"It opens the whole region to Palm Beach County and the Treasure Coast," said Jorge Pesquera, president and CEO of the Convention and Visitors Bureau and a San Juan native.
JetBlue is one of the few airlines expanding flights at PBIA, Airport Director Bruce Pelly said.
Once in San Juan, travelers can take another JetBlue flight to St. Thomas, St. Croix, St. Martin or Santo Domingo, Dominican Republic, and more destinations are planned with the terminal expansion, JetBlue Vice President Dennis Corrigan said. More than a quarter of the airline's capacity is devoted to Latin America and the Caribbean, he said.
And the Palm Beach County airport is an important location for the airline with more than 20 flights a day, Corrigan said.
Shortly before 9 a.m., Flight 328 departed to San Juan. The daily flight will bring an estimated $7 million economic impact each year with 15,000 guests arriving from Puerto Rico, according to the Convention and Visitors Bureau. The airline announced fares as low as $93 each way for sale through May 25 at www.jetblue.com/new. Fares are for flights between May 29 and June 21.
The new service uses a 150-passenger Airbus A320 departing PBIA at 8:50 a.m. (arrival 12:20 p.m.) and departing San Juan at 12:10 p.m. with PBIA arrival at 2:54 p.m.
Most of the passengers didn't realize they would board the inaugural flight until they arrived at the airport.
Luz and Julio Moran of Loxahatchee travel to Puerto Rico two or three times of year to visit Julio Moran's family.
"We used to travel through Fort Lauderdale," he said. "But now that we've got it here, why go through there?"
Elizabeth Montilla of Port St. Lucie agreed. She used either Fort Lauderdale or Orlando airports to travel to Puerto Rico for family business every two or three months.
"It makes it easier for me," she said of the PBIA direct flight.
EC updates the European safety list of airlines subject to an operating ban
By Christie Nicholson | March 11, 2012, 1:31 PM PDT
The most powerful solar storms in the last five years threatened to wreak havoc with our digital systems on Earth last week. To find out just what solar storms are, why they are in the news recently and why we are more vulnerable to them than ever before, Smart Planet turned to space weather expert Bill Murtagh, program coordinator for the NOAA Space Weather Prediction Center.
SmartPlanet: So what is a solar storm?
Bill Murtagh: Solar storm is loose term to capture the bigger picture of what we call space weather. From the solar flare we get emissions of radiation that affect the Earth environment and then there is an eruption associated with that flare that causes a geomagnetic storm. The whole thing we call a solar storm or space weather.
SP: Are the emissions the coronal mass ejection?
BM: Yes, the coronal mass ejection blasts the billions of tons of plasma that escapes out from the sun sometimes impacting Earth creating geomagnetic storming. This is all part of the solar storm, also known as our space weather.
SP: Presumably other events can be a part of what we call space weather?
BM: From our perspective it is just from the sun. We do get high-energy radiation from deep space. We use the term galactic cosmic radiation, but that doesn’t vary much. It does vary over the 11-year solar cycle but we don’t get pulses and events based on the galactic cosmic radiation. So essentially all the space weather we are interested in has its origin right there, on the sun.
SP: Why do we need to study space weather?
BM: It’s largely because of our reliance on advanced technology for everything we do today. We’ve always had some concern with space weather for as long as we’ve had technology. Back in 1859 we had a big solar flare that impacted the telegraph system of the day.
But consider what has happened on Earth in the last 10 or 15 years. Our reliance on cell phones. Our reliance on GPS, which now pervades society. Our reliance on satellites for so much of what we do. It is these very technologies that are vulnerable to space weather. We have to understand the space environment and understand what we need to do to mitigate the effect of it on the technology we rely on. Because when we lose this technology for any length of time it can be anywhere from a little bit bothersome to bordering catastrophic.
SP: How do we mitigate space weather’s impact?
BM: Well it depends on which sectors are impacted. Take one technology, like aircraft. If you are going to fly from the United States to Asia typically you will fly over the north pole. Last year we had 11,000 flights over the polar regions. The radiation from these solar storms flows in along Earth’s magnetic lines concentrated at the polar regions. And it really impacts the communications of the aircraft and even the navigational systems. So the airlines, when they get the storm warnings, they reroute the flights, and get them away from the polar regions. That’s happened several times over the last couple of days.
SP: How do you measure the seriousness of space weather?
BM: We use a solar radiation scale of 1 through 5, with 5 being extreme. This week we’ve been at the 3-level. And a 3-level radiation storm is a threshold where airlines will reroute flights away from the poles.
SP: Was there anything really that unusual about the storms that happened this week? Or was it just a media frenzy? I don’t recall this much attention being paid to the solar cycle 11 years ago.
BM: Yes, good question. There’s nothing really exceptional about this week’s event. There are three different types of space weather that we measure and we did hit the 3-level on each of the three types with this particular outbreak. Now that is the first time that’s happened during this solar cycle.
But today, as opposed to over a decade ago, we have a whole new media landscape for this cycle, with the web and blogs. So people are just a lot more aware of things that are happening and there is a lot more communication across the globe, period. There has been a lot of attention paid to space weather in the last four or five years.
Because we started looking back at the big events in 1859 and 1921 and recognizing they were much larger than anything we’ve seen in recent history and should one of them occur today the impact could be very significant on the nation. So it’s got the attention of the highest levels of government. Consequently it’s getting a lot more attention.
SP: You mentioned there are three types of space weather? What are the three types?
BM: The first is the R-scale which is the solar flare radio blackouts. The electromagnetic emission from the flare is impacting Earth, at the speed of light. We have 93 million miles from the sun to here, and it takes only 8 minutes to get here and we’d feel certain types of effects. It can impact GPS devices.
Within about an hour or two after that we start looking for particle radiation. We call this our S-scale, the solar radiation scale. This would affect satellites and this is what NASA would be worried about regarding astronaut protection. And it also impacts the airlines.
And the third type of space weather is the geomagnetic storm, the G-scale. Which is caused by the enormous blasts of material from the sun. It usually takes a couple of days before it impacts the Earth. And that is what we had Friday morning, the G-3 conditions, with Aurora Borealis [Northern Lights] visible in the northern states.
SP: NOAA seems to have a long history of studying space weather, you mentioned the 1859 event. How far back do the records go?
BM: It depends on what we are measuring. One of the oldest records, by far, is the sun spot records. If you could look at the sun with a welder’s mask or look at it during sun set you can see sun spots. So even 2,000 years ago the Chinese records make references to sun spots. And we have excellent observations and drawings of sun spots dating back to the 16th Century. Galileo sun spot drawings are kept in the Vatican. So it’s very useful for us to see the sun spot cycles dating back hundreds of years.
We could measure the Earth’s magnetic field back in the mid-19th Century because during that big 1859 storm—we refer to it as the Carrington Flare—we had magnetometers in place at observatories in London that detected the disturbance in the Earth’s magnetic field.
The other big record of these storms and when they occurred is records of the Northern Lights and the southern extent of the Northern Lights. Our friends in Canada and Alaska are used to seeing the Northern Lights, but picture what happened in 1921 with a geomagnetic storm so strong that the Northern Lights were visible in Cuba and Jamaica.
So we have records from the mariners of old who kept the records of weather conditions and sightings of the aurora, so we have a good sense of how strong these storms were, dating back hundreds of years. More modern satellite measurements only date back to the 60s.
SP: And when was the most recent largest geomagnetic storm?
BM: The one in 1989 was the most significant one in the last 50 years. The 1859 and the 1921 were quite a bit stronger than this one. But it was the 1989 one that brought the electric power down in Quebec and caused disturbances as far south as Virginia.
SP: So is it really an exact pattern of an 11-year cycle?
BM: Sometimes that 11-year cycle can mislead people. It’s an 11-year cycle but we only need one rogue group of sun spot activity to cause the potential problems on Earth. Some of the biggest ones occurred in October of 2003, December of 2005 and January 2006. So even four or five years after the maximum peak of the cycle things can happen. There was little actively in 2008 or 2009. Big things can happen anytime over a seven year period.
SP: So the number of solar storms doesn’t necessarily mean more danger? All it takes is one bad storm at any point during the cycle?
BM: Yes, correct.
SP: What causes the 11-year cycle? What causes frequency and what causes severity of the storms? Do we have any idea?
BM: Not really. The differential rotation of the sun and the fact that it’s one big plasma ball. We don’t understand why it’s an 11-year cycle and not 21 or 41 or 51. That is not understood.
SP: Are we curious about that? Or is it not that important?
BM: Well, what we would like to know is the magnitude of the sun spot cycles. One interesting fact when we look back on the historical record. Series of very low sun spot cycles 1640-1715. For 75 years they were practically non-existent. That period happened to coincide with the coldest period of the mini-ice age. So the outputs of the sun being diminished for an extended period will influence climate. How much is the big question.
But we would like to know if that could happen within the next 50 years. We’d like to be able to predict when the cycles will be big or small.
SP: What can you predict today?
BM: When I look at the sun today and point to a narrow sun spot group we know there is potential for eruption. We have ways of measuring that sun spot group and its complexity and I can put out a prediction indicating a 60 or 70 percent chance of a big flare.
What is missing is that we cannot tell from the sun spot if it will be a big solar flare or not. So I can’t give immediate warning of a flare. Now the other two types of space weather, yes I can provide some warning but all I can give is some probabilistic warning, based on the size of sun spots, that something is likely.
SP: It’s a good thing the sun is so far away then.
BM: Yes we have that 93 million mile distance and over time we have fortunately developed the Earth’s magnetic field and it and our atmosphere provides tremendous shelter from this harmful radiation.
SP: All of this reminds me of our vulnerability to terrorist attacks in the form of a nuclear explosion in the atmosphere just above the U.S.
BM: A nuclear device detonated in space above us could be a very significant thing. Could have a much bigger consequence than one detonated downtown in a city. Because of what that electromagnetic pulse does to our technology would be very significant. There are three phases of pulsing from such a nuclear device detonated in space. And the sort of emissions that would be emitted are the key emissions that we don’t get from the sun down here on Earth. Those would knock out our sensitive electronics here. Over the U.S. it could impact all sorts of systems. The third emission is somewhat similar to the impact from a geomagnetic storm. But from the sun’s emissions we do not have to build those cages and lead shields to protect our data equipment. Our electrical grid may be vulnerable to the sun. But we are not going to see the same kind of pulse that we can see from a nuclear device detonated over the country.
Five freight forwarders who have performed significant work for the U.S. Government and Government contractors have been added to the Excluded Party List System (EPLS), meaning that they have been debarred from U.S. Government contracting. The debarred freight forwarders are:
- BAX Global Inc., 440 Exchange, Irvine, California 92602
- Kühne + Nagel International AG, Post Office Box 67, Schindellegi, Switzerland
- Panalpina Welttransport (Holding) AG, Postfach, Basel, Switzerland 4002
- Panalpina Inc., 1776 On the Green, 67 E Park Place Fl 3, Morristown, New Jersey 07960
- Schenker AG, Alfredstr. 81, Essen, Nordrhein-Westfalen, Deutschland 45130
The debarment of these freight forwarders from U.S. Government contracts follows a September 30, 2010 guilty plea by certain of these companies to criminal price-fixing charges, antitrust violations, and an agreement by them to pay $50.7 million in criminal fines to the United States Government. According to a September 30, 2010 press release by the U.S. Department of Justice, the entities that pleaded guilty include Kühne + Nagel International AG, Panalpina World Transport (Holding) Ltd., Schenker AG, and BAX Global Inc.
It sounded too good to be true, and maybe it was.
In 2010 a company that would soon call itself Pan American Airways Inc. moved into the original 1930s Pan American Western Division headquarters building at the Brownsville South Padre Island International Airport.
Bob Hedrick, the new PAA’s former chief executive officer — now jailed and awaiting trial on child pornography charges — talked a big game. In 2011, for instance, PAA would begin 70 cargo flights a month between Brownsville and various Latin Ameri-can destinations, he said.
“We will be announcing the reopening of Pan American Airways,” Hedrick told The Herald in November 2010. “We will also be announcing the reopening of the gateway to Latin America, started by Pan American back in 1929. Then they’re going to rededicate this building at the same time.”
A rededication ceremony did in fact take place the same month, complete with mariachi band, vintage aircraft flyovers, box lunches, and local luminaries taking turns at the microphone to praise PAA and Hedrick’s vision.
Hedrick had identified the South American floral industry, which ships billions of dollars worth of flowers a year into the United States, as a natural market for a Brownsville-based air cargo operation. He reasoned that flowers and other perishables arriving by air could be trucked to central U.S. buyers from Brownsville faster than from Miami.
In 2011 Hedrick expanded his plans. He envisioned Brownsville as the future gateway for air cargo flowing into Latin America from China via Lambert-St. Louis International Airport in Missouri. Lambert officials had spent years attempting to nail down a deal with China Cargo Airlines to make the airport the U.S. hub for Chinese cargo flights.
Hedrick, with Brownsville officials in tow, traveled to St. Louis to meet with Lambert authorities and discuss a potential St. Louis-to-Brownsville link. He spoke of St. Louis-Brownsville as if it were practically a done deal, though Lambert officials stressed that everything was preliminary. St. Louis actually did get a China Cargo flight from Shanghai in September. It was supposedly the first of many to come, though China Cargo has canceled every scheduled weekly flight since then.
This is likely due in part to the Missouri Legislature killing a tax credit bill — dubbed “Aerotropolis” — that would have made the route financially competitive. A smaller volume of air cargo coming from China is another probable factor.
Hedrick said PAA wasn’t intended as a passenger service but that it probably would fly passengers at some point. He identified Monterrey and Mexico City as possible destinations. When Hedrick found out that then-Mayor Pat M. Ahumada Jr. and some city commissioners were pushing financial incentives to lure another carrier for passenger air service to Mexico — dubbed “Fly Fron-tera” — Hedrick cried foul, insisting PAA and other carriers be allowed to submit proposals for Mexico air service, rather than sneaking Fly Frontera in the back door.
He submitted his own proposal and went so far as to register the name “Fly Frontera” to prevent the firms behind it, Public Char-ter Inc. and Charter Air Transport, from using it. Apparently the principals hadn’t thought to register the name themselves. The city commission, meanwhile, voted to slow down and take a closer look at the Fly Frontera deal. In April, a less than glowing due diligence report by the Brownsville Economic Development Council caused crucial political support to evaporate, which prompted Fly Frontera’s principals to withdraw their proposal.
Hedrick appeared to enjoy his public battles with former commissioner Charlie Atkinson, a vocal Fly Frontera proponent openly contemptuous of PAA’s capacity for flying anything anywhere. Hedrick’s response was that big things were in the offing for Brownsville, and Atkinson would see.
In May, Hedrick received a boost to his credibility when the governor’s office bestowed upon PAA and Hedrick’s other Brownsville-based firm, World-Wide Consolidated Logistics Inc., the coveted Texas Enterprise Zone project designation. The des-ignation was awarded on the strength of Hedrick’s plan to make Brownsville the air cargo gateway to Latin America and connect with St. Louis for Chinese cargo.
It meant Hedrick would be eligible to apply for $2,500 per qualified job he created, based on PAA’s projections of 426 jobs created and $95.5 million in capital investment over five years. The Brownsville Economic Development Council had gone to bat in a big way helping PAA apply for the TEZ designation.
And then it was over: Federal agents arrested Hedrick at his Brownsville home on July 18. The arrest was on a federal complaint alleging that he shared multiple child pornography images over a three-month period with undercover investigators from Louisiana and Wisconsin. Hedrick is still in custody awaiting trial.
For BEDC officials and others who dared to believe Brownsville was actually on the verge of launching its own air cargo indus-try, under the venerable Pan American name no less, Hedrick’s unmasking and downfall must have seemed close to a betrayal. The city’s recent history is marked by more than one episode in which officials have thrown their support behind business ventures only to be left holding the bag. Taylorcraft and Titan Tire come to mind. The PAA debacle provided a new twist to Brownsville’s catalog of disappointments.
That said, 2011 was a good year for economic development in other ways. Among the highlights, according to BEDC: the North Brownsville Industrial Park christening; CK Technologies’ $20 million investment in its Brownsville truck part plant; AeroMexico’s inauguration of Brownsville-Monterrey passenger air service; and groundbreaking on new road projects and the West Rail Bridge, which will provide infrastructure for future commercial and industrial growth.
Also, Brownsville was designated a “Competitive Ready” city by the site selection/economic develop firm CR Group; and the Port of Brownsville advanced to third place — only behind Houston and New Orleans — in steel importing and exporting.
Salinas said the recession gave the BEDC time to step back, assess its goals and work toward them, with the result that 2012 should bring more good news.
“Our pipeline is full right now with projects from South America and Asia,” he said. “We’re very hopeful we’re going to be mak-ing an announcement in the next few weeks. 2012 is going to be banner year for Brownsville. I usually don’t like to say such a thing, but I think all the work we’ve done in 2010 and 2011 is going to pay off in 2012.”
As for PAA, Salinas said BEDC has heard little from Richard Alaniz (formerly Hedrick’s number two and now head of PAA), though he believes Alaniz is trying to secure Latin American cargo contracts. Hedrick was eager for media attention when he was running PAA. The same can’t be said for Alaniz, who has ignored multiple requests from The Herald for comment concerning the company’s future.
Salinas said that whatever happens to PAA, Hedrick’s observation that Brownsville is ideally situated geographically to take ad-vantage of the U.S.-Latin American cargo market holds true.
“He figured out that if Pan American Airways had its Latin American headquarters in Brownsville 50 years ago, it was for a rea-son,” Salinas said. “Now that we’ve been made aware of that, we’re going to do everything we can as a business community to pick up where he left off. We should have been doing this 30 or 40 years ago. Why were we not doing what Miami was doing? We’re really playing catch up with that one. Hopefully (PAA) will continue with the plan they had set in place. If not, there’s an opportunity for somebody else to do exactly that.”
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Washington — U.S. Customs and Border Protection today announced that it has been successfully receiving manifests in the Automated Commercial Environment (ACE) e-Manifest. The pilots, which began in November, focus on transitioning full rail and sea manifest capability to ACE from the legacy system. In addition, CBP announced that thirteen CBP ports have successfully begun accepting and processing sea and rail manifests in ACE.
“ACE is part of the CBP modernization process that is essential to facilitating trade and security, speeding the flow of commerce into the country,” said Commissioner Alan D. Bersin. “The success of these pilots is demonstrative of CBP’s continuing commitment to trade automation.”
During the pilots, CBP will operate rail and sea manifest in both ACE and the Automated Commercial System (ACS) to allow trade partners ample time to implement the required programming changes prior to the decommissioning of ACS for rail and sea manifest. The pilots also allow for a smooth data transition from the legacy system.
CBP plans to announce the decommissioning of the legacy system for rail and sea manifest through the Federal Register after the successful completion of the test and the acceptance of ACE as the replacement system for rail and sea manifests. The notice will commence a six-month timeframe in which ACE will become the only CBP-approved electronic data interchange through which rail and sea manifests may be transmitted.
The Automated Commercial Environment (ACE) is a multi-year project to modernize the business processes essential to securing U.S. borders, speeding the flow of legitimate shipments, and targeting illicit goods. ACE is a key part of CBP’s layered defense to facilitate trade and border security.
U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.![]()
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American Airlines' parent company AMR Corporation has filed for Chapter 11 bankruptcy protection.
Shares in the airline plunged 85% when they resumed trading on Tuesday. They are now worth 25 cents each.
The company expects the airline to continue to operate as normal throughout the bankruptcy process.
Speculation about AMR's financial position surfaced in recent weeks after cost-cutting negotiations failed.
AMR said agreements with its workforce forced it to spend $600m (£384m) more than other airlines on staff costs.
The airline employs 78,000 staff worldwide and operates out of five major US hubs.
Chapter 11 refers to a section of the US Bankruptcy Code. It protects a company from its creditors, giving it time to reorganise its debts or sell parts of the business.
American Airlines was the only one of the major US airlines operating international routes not to file for bankruptcy after the September 11th terrorist attacks.
Its competitors have successfully used bankruptcy to restructure their labour contracts and cut costs.
Changes at the board
The company also announced that Gerard Arpey, the Chief Executive of AA has retired and would be replaced by the company's president, Thomas Horton.
Mr Horton said the board had unanimously decided to file for bankruptcy on Monday night.
He announced that American would be looking to change its employees' terms and conditions. "We plan to initiate further negotiations with all of our unions to reduce our labour costs to competitive levels," he said.
David Bates, president of the Allied Pilots Association conceded that employment terms would change. "The 18-month timeline allotted for restructuring will almost certainly involve significant changes to the airline's business plan and to our contract."
Mr Horton insisted that the company would emerge in more robust health: "I am confident American will emerge even stronger as a global leader known for excellence and innovation."
He added that during the restructuring the airline would reduce its flight schedule in the US "modestly" with a corresponding reduction in staff.
Mr Horton said no single factor had led to the decision to file for Chapter 11 but the company needed to cut costs. He pointed to weak demand and high fuel prices, which have risen more than 50% in the last five years.
British Airways
British Airways operates an international partnership with AA on transatlantic routes and are both part of the One World alliance.
American also has a joint venture with Japan Airlines.
British Airways' parent company IAG said in a statement: "We have every confidence in the future of American Airlines. We are pleased they are taking this step which shows commitment and determination.
The statement added: "Our joint business, which is a revenue sharing agreement, continues to operate as usual."
Reversal of fortunes
American Airlines was the world's biggest airline three years ago but has since fallen behind Delta and United after they bought out other airlines. Delta filed for bankruptcy in 2005 and United was one of the first to do so in 2002.
Unlike other major US airlines, AA has not returned to profit in the last two years. AMR Corporation lost $162m in the third quarter of 2011 and has reported losses in 14 of the last 16 quarters.
The global economic crisis has had a huge impact on the airline industry in general. Ashley Steel, transport expert at KPMG, thinks travel companies will have to adapt as businesses and individuals cut costs and fly less. "This will create more pressure on governments and regulators to allow airlines to merge cross border," he said.