American’s possible filing expected to affect travel

By Joe Healy

As soon as early summer, American Airlines may file for Chapter 11 bankruptcy, a move that not only could affect travelers, but could deliver a blow to travel agencies across the country.

With the backlash of the Sept. 11 attacks continuing, and travelers even more leery because of the war with Iraq, American Airlines is facing its share of financial woes. If American Airlines filed for bankruptcy, it wouldn’t stall or go out of business, but would be able to conduct business while protecting itself from creditors until out of debt.

“It’s so premature to even speculate,” said Monique Bond, spokeswoman for the Chicago Department of Aviation to the Chicago Tribune in response to the rumors American Airlines would file for bankruptcy.

Nonetheless, similar factors that are financially weighing on American Airlines eventually could cause travel agencies across the country to see a lower volume of customers seeking travel plans.

Leonard LeGrand, owner/manager of Allied Travel, 128 N. First St., said if American Airlines filed for bankruptcy, it alone likely would not hinder business.

“It wouldn’t help,” he said. “But the traveling economy has been bad since 9/11, then add in the war as well.”

LeGrand said American Airlines already was facing serious debt issues prior to the attacks.

Barbara Walker, travel agent for Carder Travel, 2410 Sycamore Road, said the only thing that has hurt business is a general apprehension travelers have in terms of the war and the economy.

She said travel agencies are somewhat insured if an airline stalls business, because if an agency issues tickets to an airline that goes down, those tickets have to be honored by another airline for a smaller price.

In terms of summer travel, LeGrand said he expects a large customer base still bold enough to travel, but because of the world being on heightened alert, there wouldn’t be as many people eager to travel.