Airlines apply for bankruptcy cover

American Airlines and American Eagle’s parent companies have applied for bankruptcy protection.`

AMR and AMR Eagle Holding said that they filed voluntary petitions to reorganise, saying it was in the best interest of the companies and its shareholders.

American said it sought protection to reduce its costs and debt to remain competitive in the airline industry.

American was the only major US airline that did not file for bankruptcy protection after the 2001 terrorist attacks.

American says employment rules force it to spend at least €600m (€`450m) more than other airlines.

American Airlines announced in July that it was closing its Dublin office.