I hate to say it, but this step has been overdue for a long time. All other major competitors (United, Continental, US Air) already did this in the early to mid 2000's. AA has been less competitive because of - among other things - old union-dominated labor contracts. While this filing will obviously be painful for AA's employees, it will hopefully bring the company back on track and make it able to stand up to its competitors. I just hope they cut salaries and benefits wisely and not simply across the board.
Better not fly AA today, I bet customer service will slightly lack enthusiasm...