Business News
American Airlines parent raises 2.9 billion dollars, adds flights
Sep 17, 2009, 15:48 GMT
New York - AMR Corp, the parent company of American Airlines, said Thursday that it had raised 2.9 billion dollars in cash and new aircraft financing and would increase domestic and international flights from four US hubs.
The fresh funds include 1 billion dollars in cash from the advance sale of frequent flyer miles to Citigroup Inc and 1.6 billion dollars in jet-financing commitments from GE Capital Aviation Services, the company said in a statement.
'This new financing will help us navigate through a tough environment and lay the groundwork for future success,' said Gerard Arpey, AMR's chairman and CEO. 'But we must remain mindful of the fact that being consistently profitable is the key to ensuring our long-term future.'
American Airlines, the world's second-largest carrier, said it would eliminate unprofitable flying and reallocate resources to hubs in Chicago, New York, Dallas-Fort Worth in Texas and Miami.
It will add 57 daily flights at Chicago's O'Hare International Airport, which is its primary Asia gateway, and will start a new service to Beijing in spring 2010.
New services from New York will include flights to Madrid, Manchester, Britain and San Jose, Costa Rica. From Texas, flights to San Salvador, El Salvador will be reinstated after a two-year hiatus.
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