On November 29 the oldest operating U.S. airline, American Airlines, filed for bankruptcy.  But before anyone gets excited, look at the facts.

The new CEO of American Airlines, Thomas Horton, blames his company’s losses on the cost of union labor.  He specifically calls union labor “cost disadvantages”.

First off, the majority of American Airlines aircraft are older fuel guzzling planes. Isn’t that a cost disadvantage?

Secondly, while American Airlines officials claim they’re losing money, they just made the largest order of new aircraft in airline history.  460 new planes ordered in July!  Isn’t making the biggest purchase of aircraft in history a cost disadvantage?

Thirdly, while claiming to be hurting for cash, American Airlines is actually sitting on billions in cash.   According to CBS News, U.S.$4 billion to be exact!  Where does Thomas Horton get off saying they have cost disadvantages?

Wouldn’t it be nice if we individuals could file for bankruptcy while sitting on a pile of cash?  Don’t blame the unions!