AMR Announces New Liquidity, Network and Fleet Enhancements
AMR Corporation, the parent company of American Airlines and American Eagle, today announced a series of actions that will better position it to meet the industry’s near-term economic challenges while continuing to build on its foundation and strategy for long-term success. The highlights of the announcement include:
- A total of $2.9 billion in additional liquidity and new aircraft financing was obtained. The $2.9 billion consists of: $1.3 billion in new liquidity, including $1 billion in cash from the advance sale of AAdvantage ™ frequent flyer miles to Citibank and $280 million in cash under a loan facility from GE Capital Aviation Services (GECAS) secured by owned aircraft; and $1.6 billion in sale-leaseback financing commitments from GECAS for Boeing 737s previously ordered by the Company.
- American selected GE’s GEnx-1B 74/75 engine for American’s future 787 deliveries.
- Eagle plans to add a First Class cabin to its fleet of 25 Canadair CRJ-700 regional jets and also signed a letter of intent with Bombardier, Inc. to exercise options for the purchase of 22 additional CRJ-700s for delivery beginning in the middle of 2010.
- American and Eagle are refocusing their collective network strategy to eliminate unprofitable flying and reallocate resources to hubs in Dallas/Fort Worth, Chicago, Miami and New York. These four cities, along with Los Angeles, serve as the cornerstones of the Company’s network and allow the airlines to build on previous investments.
- The network adjustments position the company’s combined network to benefit from important feed and global synergies from American’s planned Joint Business with British Airways, Iberia, and other oneworld partners.
The highlights of the network adjustments include:
- Add 57 additional daily flights at Chicago O’Hare, 12 new domestic and 3 new international destinations, for a total of 487 total daily departures to 114 markets.
- Start 3 new daily flights from Fargo, ND to Chicago, IL.
- Start 2 daily flights from Chicago to Rapid City, SD (seasonal only) and 3 daily flights to Sioux Falls, SD.
- Add 2 daily flights from Charleston, WV to Chicago, IL.
- Start 3 daily flights from Allentown, 2 daily flights from Wilkes-Barre/Scranton, 3 daily flights from Harrisburg, and 3 additional flights from Pittsburgh all to Chicago.
- Add 19 additional daily flights at DFW, one new international destination, results in 780 total daily departures to 160 destinations.
- Add 7 new departures to 3 new domestic and 3 new international destinations at JFK; 2 additional daily flights at LaGuardia, for nearly 200 total daily departures from New York.
- Add 23 daily flights to 2 new destinations, 294 total daily departures to 108 markets from Miami.
- Begin 2 daily flights from Birmingham, Alabama to Miami, FL.
News Releases and Teleconference Information
AMR’s Chairman and Chief Executive Officer, Gerard Arpey and AMR’s Executive Vice President and Chief Financial Officer, Thomas Horton, will make a presentation to analysts during a Teleconference call on Thursday, September 17 at 9 a.m. EDT.
Following the analyst teleconference, they will hold a question-and—answer conference call for media. Reporters interested in listening to the presentation or participating in the media Q&A should call 817-967-1577.