American Airlines plans for brighter future
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American Airlines has raised US$2.9 billion in cash and financing and will expand at four US hubs to prepare for a recovery in travel demand. Bloomberg has reported that American’s parent company, AMR Corp. raised US$1 billion from Citigroup through advanced FFP miles, and a further US$1.6 billion from GE Capital Aviation Services for jet-financing commitments. The GE deal will provide funding for new Boeing 737-800s. The carrier also said that it will increase flights from Chicago, New York, Dallas-Fort Worth and Miami, and that some regional jets will get first-class cabins. The carrier also will purchase 22 70-seat Bombardier Inc. planes.
American’s Chief Financial Officer, Tom Horton, was reported saying the moves were “a show of strength”.
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