American Airlines mortgaging planes to raise money

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American Airlines mortgaging planes to raise money  =

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Thursday July 3, 5:37 PM EDT =


WASHINGTON, July 3 (Reuters) - American Airlines, the world's largest air=
line which narrowly avoided bankruptcy this spring, is mortgaging some of=
 its last available aircraft assets to raise $254 million.

American, a unit of AMR Corp. (AMR), told the Securities and Exchange Com=
mission in a filing on Wednesday it would leverage seven Boeing Co. (BA) =
planes -- three 737s, three 777s and a 767.

With this transaction, American told the government it has mortgaged virt=
ually all of its eligible aircraft.

"While we have other unencumbered assets that could be encumbered or sold=
, our ability to borrow on or sell those assets on acceptable terms is un=
certain, and in any event those assets may not maintain their current mar=
ket value," the company said in its filing.

American said on Tuesday it received $180 million in cash and a $39 milli=
on promissory note for its equity stake in Worldspan LP, the computer res=
ervations system it owned with two rivals that has now been sold.

Last week, American reported a positive May cash flow, which bolstered it=
s turnaround strategy and eased bankruptcy fears.

Shares of AMR rose 8 cents, or 0.8 percent, on Thursday to close at $10.1=
3 on the New York Stock Exchange. =



=A92003 Reuters Limited. =


Roger
EWROPS

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