AMR's American seeks bankruptcy financing -sources

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AMR's American seeks bankruptcy financing -sources  =

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Monday March 10, 2:10 PM EST =


CHICAGO, March 10 (Reuters) - AMR Corp.'s (AMR) American Airlines has qui=
etly begun talks on Wall Street seeking up to $2 billion in bankruptcy fi=
nancing should a Chapter 11 filing become necessary, a source familiar wi=
th the matter said on Monday.

"They're starting out with a very high, unreasonable request to raise $2 =
billion," said the source, who declined to be identified. The Fort Worth,=
 Texas-based carrier is the world's largest airline, followed by UAL Corp=
=2E's (UAL) United Airlines, which filed for bankruptcy in December.

A spokesman for American declined to comment on the talks, which are taki=
ng place with a number of financial institutions. The airline is actively=
 pursuing cost-cutting agreements with its labor unions as a way to avoid=
 a bankruptcy filing.

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Several sources said the talks are in the preliminary stages and would in=
volve the usual range of lenders to large bankruptcy cases, including Cit=
igroup (C), J.P. Morgan Chase (JPM), CIT Group (CIT) and perhaps Boeing C=
o. (BA) Citibank offers a credit card linked to American's frequent flyer=
 program.

AMR posted a record $3.2 billion net loss in 2002 and has outlined a goal=
 to cut $4 billion in annual costs to stay afloat. It has hired bankruptc=
y lawyers and a financial advisory firm, sources have told Reuters. =



=A92003 Reuters Limited. =


Roger
EWROPS

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