18-Sep-2009 10:14 AM

AMR Corporation raises USD2.9 billion in additional funding, orders 22 more CRJ700s

AMR Corporation, parent company of American Airlines and American Eagle, announced (17-Sep-2009) a series of actions to meet the industry's near-term economic challenges:

  • Funding: A total of USD2.9 billion in additional liquidity and new aircraft financing has been obtained:
    • USD1.3 billion in new liquidity, including USD1 billion in cash from the advance sale of AAdvantage frequent flyer miles to Citi;
    • USD280 million in cash under a loan facility from GECAS secured by owned aircraft;
    • USD1.6 billion in sale-leaseback financing commitments from GECAS for B737s previously ordered by the company.
  • Fleet: Signed a letter of intent with Bombardier to exercise options for the purchase of 22 additional CRJ700 aircraft for delivery beginning in the middle of 2010;
  • Hubs: Reallocating capacity to hubs in Dallas/Fort Worth, Chicago, Miami and New York;
  • Product: American Eagle to add a First Class cabin to its fleet of 25 Bombardier CRJ700 regional jets; [more]