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]

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More