) -- American Airlines parent
said it has increased financing by $2.9 billion and will reallocate capacity to its hubs.
The new financing includes $1.3 billion in new cash, including $1 billion from the advance sale of frequent flier miles to
and $280 million under a loan facility from
GE Capital Aviation Services
, secured by aircraft.
Another $1.6 billion reflects sale-leaseback financing commitments from GECAS for Boeing 737s that will be added to the fleet. American said it has selected
engines for its future 787 deliveries.
"Today's announcement positions our company well to face today's industry challenges and allows us to remain focused on the future and on returning to profitability," said CEO Gerard Arpey, in a prepared statement.
Arpey indicated that American's ability to avoid bankruptcy, when most of its competitors filed in the early half of the decade, played a role in assuring its ability to secure financing from major partners. "We have a long history of meeting our obligations to stakeholders, and we believe our track record played no small role in today's accomplishments," he said.
In network changes, American and American Eagle will reallocate resources from unprofitable areas to hubs in Dallas, Chicago, Miami and New York. The carrier said the four cities, along with Los Angeles, will serve as "the cornerstones" of its network, partially by providing feed traffic and global synergies with partners
American will add 57 daily flights in Chicago, increasing daily departures at O'Hare International Airport to 487. Besides new service to Beijing in 2010, American will add 14 destinations including Anchorage, Alaska; Honolulu; Calgary and Vancouver, Canada; and 10 medium-sized domestic destinations.
American will add six destinations at New York's Kennedy Airport, including Madrid; Manchester, England; and San Jose, Costa Rica. Daily departures will grow by seven to 96. In Dallas, American will add 19 daily departures, bringing the total to 780. In Miami, American will add 23 departures, bringing the total to 294.
In St. Louis, American will cut daily departures by 46, halting service to 20 destinations, bringing daily departures to 36. In Raleigh Durham, N.C., nine departures and three destinations will be eliminated, bringing the total number of daily departures to 44.
Also, American Eagle will enhance its fleet, adding first class service to 25 Bombardier CRJ700 regional jets and purchasing 22 additional CRJ700 aircraft, with deliveries starting in mid-2010.
-- Written by Ted Reed in Charlotte, N.C.