| American Airlines
        plans to invest US$20 million in upgrades on its entire fleet of Boeing 767-200 aircraft. The upgrade includes updated
        First and Business Class seats, a lighter and brighter cabin interior, and new audio and video on-demand personal entertainment devices
        in First and Business Class. The upgrade also includes an additional First Class seat, increasing the number of First Class Seats from 9 to
        10 on each aircraft. In addition, American will enhance its lounge admittance policy in conjunction with the opening of the new Flagship
        Lounge and second
        Admirals Club lounge at the new JFK terminal by summer 2007. First Class passengers flying on transcontinental routes on three-class
        aircraft will have access to American’s Flagship Lounges, usually reserved for international premium class customers. In addition,
        Business Class passengers traveling on transcontinental routes on three-class aircraft will have access to American’s Admirals Club
        lounges. American has a Flagship Lounge facility and Admirals Club lounge at Los Angeles International Airport and opened a new
        Admirals Club in Concourse C in New York’s John F. Kennedy International Airport in 2005. The
        US$20 million investment represents another step in a series of investments American, a founding member of the global oneworld
        Alliance, is making to its core products to enhance the overall customer experience. The Boeing 767-200 aircraft is primarily flown from
        New York to Los Angeles and New York to San Francisco, which are key markets in American’s extensive domestic network. The
        transcontinental flights often connect passengers to American’s extensive international network. Customers will begin seeing the enhancements as early as summer 2007. The upgrade will be implemented in a phased approach,
        beginning with new inflight entertainment and updated interiors and will be followed by: Upgraded, fully motorized seats in the First Class cabin – offering customers greater seat flexibility to assure comfort. The addition of one First Class seat per aircraft, made possible by utilizing currently unused space and additional space made available
        by the installation of the new and smaller digital inflight entertainment system. American will gain almost 11,000 additional First Class
        seats annually in the New York to Los Angeles and New York to San Francisco transcontinental markets. Updated interior throughout the aircraft for a lighter and brighter look including new upholstery, carpeting and lighter “basket-weave”
        sidewalls. “We are focused on investing in our transcontinental product – on some of our most important routes – to enhance the overall customer
        experience for our valued premium travelers ,” said David Cush, American’s Senior Vice President of Global Sales. “The aircraft upgrades,
        combined with the new transcontinental premium class menus and the new amenities we recently announced, all work together to
        enhance the total travel experience onboard the aircraft.” See
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