By Bill Zeeble, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-861155.mp3
Dallas, TX –
American Airlines' parent company, AMR, says it's taking on nearly 3 billion dollars in debt to add routes and small jets to grow its service. KERA's Bill Zeeble has more.
The company says it's taken out new loans and made advanced sales totaling 2.9 billion dollars to add what it expects will be highly profitable routes. Airline observer, Tom Parsons, of Bestfares.com, says the announcement from the Fort Worth carrier represents the biggest Legacy carrier expansion in years. American will add flights out of Chicago, Dallas/Fort Worth, Miami, Los Angeles and other cities, while cutting service at St. Louis among others. Parsons says the carrier will also add new service to some small markets.
Parsons: They're looking at where their best advantages can be. They're looking at where they can make money. And they're still looking at the small regional airports, because if there's no competition they can charge an arm and a leg.
All airlines are suffering in the down economy. American says this move positions it for the future. Specifically, it will add 57 flights out of Chicago's OHare, and 19 from its home here at DFW Airport.