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| Version 2 | Version 3 |
|---|---|
| Airline in $1bn air mile sell-off | Airline in $1bn air mile sell-off |
| (about 23 hours later) | |
| AMR, the parent of American Airlines, has raised $2.9bn (£1.8bn) of new financing to help it through the global downturn in air travel. | AMR, the parent of American Airlines, has raised $2.9bn (£1.8bn) of new financing to help it through the global downturn in air travel. |
| The group said $1bn of the total came from advanced sales of air miles to Citigroup bank. | |
| A further $1.6bn came from a sale and leaseback arrangement with General Electric's aviation division for planes it had already ordered. | A further $1.6bn came from a sale and leaseback arrangement with General Electric's aviation division for planes it had already ordered. |
| The airline also said it would add capacity at key US airports. | The airline also said it would add capacity at key US airports. |
| Shares in AMR jumped 18% on the back of the news. | Shares in AMR jumped 18% on the back of the news. |
| 'Competitive advantage' | 'Competitive advantage' |
| Citigroup has effectively bought air miles in advance with which it can reward its customers when they use the bank's credit cards. | Citigroup has effectively bought air miles in advance with which it can reward its customers when they use the bank's credit cards. |
| "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 AMR chairman Gerard Arpey. | "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 AMR chairman Gerard Arpey. |
| He added a note of caution, however, saying that the airline "cannot borrow its way to prosperity". | He added a note of caution, however, saying that the airline "cannot borrow its way to prosperity". |
| Reports also suggest that American Airlines is in discussions with Japan Airlines about taking a stake in the troubled Japanese carrier. | Reports also suggest that American Airlines is in discussions with Japan Airlines about taking a stake in the troubled Japanese carrier. |
| "In one fell swoop, American Airlines has raised its game and put itself back in the thrust of gaining a competitive advantage against a backdrop of weak airline travel demand," said Saj Ahmad, airline analyst at the Gerson Lehrman Group. | "In one fell swoop, American Airlines has raised its game and put itself back in the thrust of gaining a competitive advantage against a backdrop of weak airline travel demand," said Saj Ahmad, airline analyst at the Gerson Lehrman Group. |
| "The real question now is how long will we wait before we see them make a move on Japan Airlines - today's news is almost certainly a precursor to that." | "The real question now is how long will we wait before we see them make a move on Japan Airlines - today's news is almost certainly a precursor to that." |