NEW YORK (CNNMoney) -- American Airlines' parent company, AMR Corp., announced Tuesday that it has filed for chapter 11 bankruptcy.
AMR said American Airlines, American Eagle and all other subsidiaries will honor all tickets and reservations and operate normal flight schedules during the bankruptcy filing process, using its $4.1 billion in cash.
The airline also announced that Gerard Arpey, its chairman and CEO, is retiring. He is being succeeded by Thomas Horton, who was named president of the company in July 2010.
In an interview with CNN Tuesday after the filing, Horton insisted that American customers should see "business as usual" in spite of the bankruptcy. But he said that the cost disadvantage for American compared to other major U.S. carriers that have already gone though bankruptcies of their own since the Sept. 11, 2001 attacks left it no choice.