AMR bolsters cash position, to order planes

An American Airlines Boeing Super 80 (foreground) prepares to take off from Chicago's O'Hare International Airport January 9, 2006. REUTERS/John Gress

ATLANTA (Reuters) - American Airlines parent AMR Corp said on Thursday that it had bolstered its liquidity and planned to take steps that include buying new planes in a bid to return to profitability.

AMR said it had obtained $2.9 billion in additional liquidity and aircraft financing. That includes $1 billion from the advance sale of frequent flyer miles to Citigroup Inc and $280 million in cash under a loan accord from GE Capital Aviation Services secured by owned planes.

The company also said it got $1.6 billion in sale-leaseback financing commitments from GE for Boeing planes it had previously ordered.

The American Eagle division has signed a letter of intent with Bombardier Inc to exercise options to buy 22 additional aircraft for delivery beginning in the middle of 2010.

The company also said it planned to add flights at key U.S. hubs.

(Reporting by Karen Jacobs; Editing by Lisa Von Ahn)

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