On November 29, 2011, AMR Corporation filed for Chapter 11 reorganization, an action that is the necessary and correct path for us to take to become a more efficient, financially stronger and more competitive airline. We believe that this decision will allow American Airlines and American Eagle to restructure so that we can emerge well-positioned to assure the company's long-term viability and its ability to compete effectively in the marketplace. It is the right decision for our company and its future.
Our very substantial cost disadvantage compared to our larger competitors, most of whom restructured their costs and debt through reorganization, has become increasingly untenable given the accelerating impact of global economic uncertainty and the resulting revenue instability, volatile and rising fuel prices and intensifying competitive challenges.
We must achieve competitiveness and flexibility associated with all of our employee-related costs. As part of our bold plan to restructure our company, we are seeking $1.25 billion in permanent annual cost reductions from all employee groups. This will require many changes in the way we do business and, regrettably, will result in job losses. But we must remember that failure to make the right changes puts all jobs at American at risk. We will continue to work for the best outcome for the greatest number of our people.