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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>As filed with the Securities and Exchange Commission on September&nbsp;3, 2009</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 0pt"><B>Registration No.&nbsp;333-</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

</DIV>


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM S-1</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REGISTRATION STATEMENT<BR>
UNDER THE SECURITIES ACT OF 1933</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>AMERICAN AIRLINES, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>4512</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>13-1502798</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top" nowrap>(State or other jurisdiction of incorporation or
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>(Primary Standard Industrial Classification Code
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification Number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>4333 Amon Carter Blvd.<BR>
Fort Worth, Texas 76155<BR>
(817)&nbsp;963-1234</B><BR>
(Address, including zip code, and telephone number, including area code, of registrant&#146;s principal executive offices)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Gary F. Kennedy, Esq.<BR>
Senior Vice President, General Counsel<BR>
and Chief Compliance Officer<BR>
American Airlines, Inc.<BR>
4333 Amon Carter Blvd.<BR>
Fort Worth, Texas 76155<BR>
(817)&nbsp;963-1234</B><BR>
(Name, address, including zip code, and telephone number, including area code, of agent for service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B><I>With a copy to:</I></B><BR>
<B>John T. Curry, III, Esq.<BR>
Debevoise &#038; Plimpton LLP<BR>
919 Third Avenue<BR>
New York, New York 10022<BR>
(212)&nbsp;909-6000</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Approximate date of commencement of proposed sale to the public: </B>As soon as practicable after
this Registration Statement becomes effective.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule&nbsp;415 under the Securities Act of 1933 check the following box.
<FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definition of &#147;large
accelerated filer,&#148; &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the
Exchange Act.
</DIV>

<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR style="FONT-SIZE: 6pt">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD></TR>

  <TR vAlign=top>
    <TD vAlign=top noWrap align=left>Large accelerated filer <FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD vAlign=top noWrap align=center>Accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD align=center>&nbsp;</TD>
    <TD noWrap align=center>Non-accelerated filer <FONT face="Wingdings">&#254;</FONT><BR>(Do not check if a smaller reporting
company)</TD>
    <TD align=center>&nbsp;</TD>
    <TD vAlign=top noWrap align=center>Smaller reporting company <FONT face="Wingdings">&#111;</FONT></TD></TR>
</TABLE></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD><!-- VRule -->
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of Each Class of</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount to be</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering Price</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Securities to be Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Per Unit(1)</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering Price</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registration Fee(2)</B></TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD valign="top" style="border-top: 2px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">13.0% 2009-2 Secured Notes due 2016
</DIV></TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" valign="bottom" style="border-top: 2px solid #000000">276,400,000</TD>
    <TD nowrap valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" valign="bottom" style="border-top: 2px solid #000000">100%</TD>
    <TD nowrap valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" valign="bottom" style="border-top: 2px solid #000000">276,400,000</TD>
    <TD nowrap valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD nowrap align="right" valign="bottom" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" valign="bottom" style="border-top: 2px solid #000000">15,424</TD>
    <TD nowrap valign="bottom" style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 6pt; width: 18%; border-top: 0px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of calculating the registration fee in accordance with Rule
457(f) promulgated under the Securities Act.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The registration fee has been calculated under Rule&nbsp;457(f)(2) of the Securities Act.</TD>
</TR>

</TABLE>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The registrant hereby amends this registration statement on such date or dates as may be
necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in
accordance with </B><B>Section 8(a)</B><B> of the Securities Act or until this registration statement shall
become effective on such date as the Commission, acting pursuant to said Section&nbsp;</B><B>8(a)</B><B>, may
determine.</B>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P style="padding: 5px; border: 3px double #000000; font-size: 11pt; color: #FF0000">The information in this prospectus is not complete and may be changed. We may not complete this exchange offer or
issue these securities until the registration statement filed with the Securities and Exchange Commission is effective.
This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the
offer or sale is not permitted.




<DIV align="center" style="font-size: 10pt; margin-top: 18pt; color: #FF0000"><B>SUBJECT TO COMPLETION, DATED SEPTEMBER 3, 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>PROSPECTUS</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><IMG src="d68884d6888400.gif" alt="(AMERICAN AIRLINES LOGO)">

</DIV>
<DIV align="center" style="font-size: 18pt; margin-top: 6pt"><B>American Airlines, Inc.</B></DIV>



<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>Offer to Exchange</B>

</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>$276,400,000 Outstanding 13.0% 2009-2 Secured Notes due 2016 for<BR>
$276,400,000 Registered 13.0% 2009-2 Secured Notes due 2016</B>

</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>

</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American Airlines, Inc., is offering to exchange the Old Notes, as defined in this prospectus,
for a like principal amount of New Notes, as defined in this prospectus.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the New Notes are identical in all material respects to the terms of the Old
Notes, except that the New Notes are registered under the Securities Act of 1933, as amended, and
the transfer restrictions and registration rights relating to the Old Notes will not apply to the
New Notes, and except for certain related differences described in this prospectus.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No public market currently exists for the Old Notes or the New Notes.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exchange offer will expire at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, New York City time, on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009
(the &#147;<I>Expiration Date</I>&#148;) unless we extend the Expiration Date. You should read the section called
&#147;The Exchange Offer&#148; for further information on how to exchange your Old Notes for New Notes.
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>See &#147;Risk Factors&#148; beginning on page 14 for a discussion of risk factors that you should
consider prior to tendering your Old Notes in the exchange offer and risk factors related to
ownership of the Notes.</B>
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each broker-dealer that receives New Notes for its own account pursuant to the exchange offer
must acknowledge that it will deliver a prospectus in connection with any resale of such New Notes.
The letter of transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an &#147;underwriter&#148; within the meaning of the
Securities Act. This prospectus, as it may be amended or supplemented from time to time, may be
used by a broker-dealer in connection with resales of New Notes received in exchange for Old Notes
where such Old Notes were acquired by such broker-dealer as a result of market-making activities or
other trading activities. We have agreed that, for a period of 90&nbsp;days after the Expiration Date,
we will make this prospectus available to any broker-dealer for use in connection with any such
resale. See &#147;Plan of Distribution.&#148;
</DIV>

<DIV align="left" style="font-size: 9pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal offense.</I></B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2009.</B>

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="2"><B>Page</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">FORWARD-LOOKING STATEMENTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">ii</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">PROSPECTUS SUMMARY</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#103">American Airlines, Inc.</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#104">Summary of Transaction</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#105">Summary of Terms of Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#106">The Aircraft</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#107">Loan to Aircraft Value Ratios</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#108">Summary of the Terms of the Exchange Offer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#109">The Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#110">Ratio of Earnings to Fixed Charges</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#111">RISK FACTORS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#112">Risk Factors Relating to the Company</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#113">Risk Factors Relating to the Notes and the Exchange Offer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#114">THE EXCHANGE OFFER</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#115">Terms of the Exchange Offer; Period for Tendering Old Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#116">Procedures for Tendering Old Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#117">Acceptance of Old Notes for Exchange; Delivery of New Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#118">Book-Entry Transfer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#119">Guaranteed Delivery Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#120">Withdrawal Rights</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#121">Conditions to the Exchange Offer</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#122">Exchange Agent</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#123">Fees and Expenses</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#124">Transfer Taxes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#125">Resale of the New Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#126">USE OF PROCEEDS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#127">DESCRIPTION OF THE NOTES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#128">General</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#129">Payments of Principal and Interest</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#130">Redemption</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#131">Collateral</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#132">Loan to Value Ratios of Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#133">Events of Default</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#134">Remedies</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#135">Post Default Appraisals</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#136">Priority of Distributions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#137">Reports</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#138">Modifications and Waiver of the Indenture and Certain Other Operative Documents</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#139">Merger, Consolidation and Transfer of Assets</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#140">Book-Entry, Delivery and Form</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#141">The Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#142">DTC</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#143">Indemnification</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#144">Certain Provisions of the Aircraft Security Agreement</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#145">Governing Law</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#146">The Trustee and Security Agent</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#147">DESCRIPTION OF THE AIRCRAFT AND THE APPRAISALS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#148">The Aircraft</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#149">The Appraisals</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#150">EXCHANGE OFFER; REGISTRATION RIGHTS; RATINGS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#151">CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#152">Exchange of Old Notes for New Notes</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#153">Certain Additional Payments</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#154">U.S. Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#155">Non-U.S. Holders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#156">CERTAIN ERISA CONSIDERATIONS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#157">General</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#158">Prohibited Transaction Exemptions</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><A href="#159">Special Considerations Applicable to Insurance Company General Accounts</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#160">PLAN OF DISTRIBUTION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#161">VALIDITY OF THE NEW NOTES</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#162">EXPERTS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#163">WHERE YOU CAN FIND MORE INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#164">INDEX OF TERMS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Appendix I</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#165">APPRAISAL LETTERS</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right">Appendix II</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#166">ALLOCABLE PORTION OF THE NOTES AND LOAN TO VALUE RATIOS PER AIRCRAFT</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="right" nowrap>Appendix III</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv4w1.htm">EX-4.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv4w2.htm">EX-4.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv4w3.htm">EX-4.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv4w4.htm">EX-4.4</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv5w1.htm">EX-5.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv23w1.htm">EX-23.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv23w3.htm">EX-23.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv23w4.htm">EX-23.4</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv23w5.htm">EX-23.5</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv25w1.htm">EX-25.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv99w1.htm">EX-99.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv99w2.htm">EX-99.2</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv99w3.htm">EX-99.3</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv99w4.htm">EX-99.4</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d68884exv99w5.htm">EX-99.5</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This prospectus incorporates important business and financial information about us that is not
included in or delivered with this prospectus. This information is available without charge to you
upon written or oral request. If you would like a copy of any of this information, please submit
your request to American Airlines, Inc., 4333 Amon Carter Boulevard, Mail Drop 5651, Fort Worth,
Texas 76155, Attention: Investor Relations (Telephone: 817-967-2970).</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>In order to obtain timely delivery of any information that you request, you must submit your
request no later than </B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>, 2009, which is five business days before the date the
exchange offer is scheduled to expire.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>You should rely only on the information contained in this prospectus and the documents
incorporated by reference in this prospectus or to which we have referred you. We have not
authorized anyone to provide you with different information. If anyone provides you with different
or inconsistent information, you should not rely on it. This prospectus does not constitute an
offer to sell, or a solicitation of an offer to purchase, the securities offered by this prospectus
in any jurisdiction to or from any person to whom or from whom it is unlawful to make such offer or
solicitation of an offer in such jurisdiction. You should not assume that the information contained
in this prospectus or any document incorporated herein by reference is accurate as of any date
other than the date of this prospectus or the date of such other document, as the case may be.
Also, you should not assume that there has been no change in the affairs of American since the date
of this prospectus.</B>
</DIV>

<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus and the documents incorporated by reference contain various &#147;forward-looking
statements&#148; within the meaning of Section&nbsp;27A of the Securities Act of 1933, as amended (the
&#147;<I>Securities Act</I>&#148;) and Section&nbsp;21E of the Securities Exchange Act of 1934, as amended (the
&#147;<I>Exchange Act</I>&#148;), which represent American&#146;s expectations or beliefs concerning future events. When
used in this prospectus and in documents incorporated by reference, the words &#147;expects,&#148; &#147;plans,&#148;
&#147;anticipates,&#148; &#147;indicates,&#148; &#147;believes,&#148; &#147;forecast,&#148; &#147;guidance,&#148; &#147;outlook,&#148; &#147;may,&#148; &#147;will,&#148; &#147;should,&#148;
&#147;seeks,&#148; &#147;targets&#148; and similar expressions are intended to identify forward-looking statements.
Similarly, statements that describe our objectives, plans or goals are forward-looking statements.
Forward-looking statements include, without limitation, our expectations concerning operations and
financial conditions, including changes in capacity, revenues, and costs; future financing plans
and needs; the amounts of our unencumbered assets and other sources of liquidity; fleet plans;
overall economic and industry conditions; plans and objectives for future operations; regulatory
approvals and actions, including our application for antitrust immunity with other <B>one</B>world
alliance members; and the impact on us of our results of operations in recent years and the
sufficiency of our financial resources to absorb that impact. Other forward-looking statements
include statements which do not relate solely to historical facts, such as, without limitation,
statements which discuss the possible future effects of current known trends or uncertainties, or
which indicate that the future effects of known trends or uncertainties cannot be predicted,
guaranteed or assured. All forward-looking statements in this prospectus and the documents
incorporated by reference herein and therein are based upon information available to us on the date
of this prospectus or such document. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future events, or otherwise.
Guidance given in this prospectus and the documents incorporated by reference herein and therein
regarding capacity, fuel consumption, fuel prices, fuel hedging and unit costs, and statements
regarding expectations of regulatory approval of our application for antitrust immunity with other
<B>one</B>world members, are forward-looking statements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward-looking statements are subject to a number of factors that could cause our actual
results to differ materially from our expectations. The following factors, in addition to those
discussed under the caption &#147;Risk Factors&#148; in this prospectus and other possible factors not
listed, could cause our actual results to differ materially from those expressed in forward-looking
statements: our materially weakened financial condition, resulting from our significant losses in
recent years; weaker demand for air travel and lower investment asset returns resulting from the
severe global economic downturn; our need to raise substantial additional funds and our ability to
do so on acceptable terms; our ability to generate additional revenues and reduce our costs;
continued high and volatile fuel prices and further increases in the price of fuel, and the
availability of fuel; our substantial indebtedness and other obligations; our ability to satisfy
existing financial or other covenants in certain of our credit agreements; changes in economic and
other conditions beyond our control, and the volatile results of our operations; the fiercely and
increasingly competitive business environment we face; potential industry consolidation and
alliance changes; competition with reorganized carriers; low fare levels by historical standards
and our reduced pricing power;
changes in our corporate or business strategy; government regulation of our business;
conflicts overseas or terrorist attacks; uncertainties with respect to our international
operations; outbreaks of a disease (such as SARS, avian flu or the H1N1 virus) that affects travel
behavior; labor costs that are higher than those of our competitors; uncertainties with respect to
our relationships with unionized and other employee work groups; increased insurance costs and
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">potential reductions of available insurance coverage; our ability to retain key management
personnel; potential failures or disruptions of our computer, communications or other technology
systems; losses and adverse publicity resulting from any accident involving our aircraft; changes
in the price of AMR&#146;s common stock; and our ability to reach acceptable agreements with third
parties. Additional information concerning these and other factors is contained in our and AMR&#146;s
filings with the Securities and Exchange Commission (the &#147;<I>SEC</I>&#148;), including but not limited to our
and AMR&#146;s Quarterly Reports on Form 10-Q for the quarters ended March&nbsp;31, 2009 and June&nbsp;30, 2009
and our and AMR&#146;s Annual Reports on Form 10-K for the year ended December&nbsp;31, 2008 (and, in the
case of AMR, as updated by AMR&#146;s Current Report on Form 8-K filed on April&nbsp;21, 2009).
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->iii<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P>
<DIV style="width: 99%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PROSPECTUS SUMMARY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>This summary highlights basic information about us and this exchange offer. Because it is a
summary, it does not contain all of the information that you should consider before tendering your
Old Notes in the Exchange Offer. You should read this entire prospectus carefully, including the
section entitled </I>"<I>Risk Factors&#148; in this prospectus, as well as the materials filed with the SEC
that are considered to be a part of this prospectus before making an investment decision. See</I>
"<I>Where You Can Find More Information&#148; in this prospectus. We have given certain capitalized terms
specific meanings for purposes of this prospectus. The &#147;Index of Terms&#148; attached as Appendix&nbsp;I to
this prospectus lists the page in this prospectus on which we have defined each such term. Unless
otherwise indicated, &#147;we,&#148; &#147;us,&#148; &#147;our&#148; and similar terms, as well as references to &#147;American&#148; or
the &#147;Company, &#148; refer to American Airlines, Inc. The term &#147;you&#148; or the &#147;Noteholders&#148; refers to
holders of the Notes.</I>
</DIV>

<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>American Airlines, Inc.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American, the principal subsidiary of AMR Corporation (&#147;<I>AMR</I>&#148;), was founded in 1934. All of
American&#146;s common stock is owned by AMR. At the end of 2008, American provided scheduled jet
service to approximately 150 destinations throughout North America, the Caribbean, Latin America,
Europe and Asia.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, American has capacity purchase agreements with AMR Eagle and an independently
owned regional airline, which does business as the &#147;AmericanConnection&#148; (the &#147;<I>AmericanConnection&#174;
carrier</I>&#148;)<I>. </I>The AMR Eagle and AmericanConnection&#174; carrier provide connecting service from ten of
American&#146;s high-traffic cities to smaller markets throughout the United States, Canada, Mexico and
the Caribbean.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American, AMR Eagle, and the AmericanConnection&#174; airlines serve 250 cities in 40 countries
with, on average, more than 3,400 daily flights. The combined network fleet numbers approximately
900 aircraft. American is also a founding member of <B>one</B>world&#174; Alliance, which enables member
airlines to offer its customers more services and benefits than any member airline can provide
individually. These services include a broader route network, opportunities to earn and redeem
frequent flyer miles across the combined <B>one</B>world network and more airport lounges. Together,
<B>one</B>world members serve nearly 700 destinations in over 150 countries, with 8,500 daily departures.
American is also one of the largest scheduled air freight carriers in the world, providing a wide
range of freight and mail services to shippers throughout its system onboard American&#146;s passenger
fleet.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The postal address for American&#146;s principal executive offices is 4333 Amon Carter Boulevard,
Fort Worth, Texas 76155 (Telephone: 817-963-1234). American&#146;s Internet address is
<I>http://www.aa.com</I>. Information on American&#146;s website is not incorporated into this prospectus and
is not a part of this prospectus.
</DIV>

<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Summary of Transaction</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Aircraft are currently subject to the liens of separate indentures (the &#147;<I>1999-1
Indentures</I>&#148;) as part of an enhanced equipment trust certificate transaction entered into by
American in 1999 (the &#147;<I>1999-1 EETC</I>&#148;). Final distributions on the equipment notes in the 1999-1
EETC are scheduled to be made on October&nbsp;15, 2009 (the &#147;<I>1999-1 Maturity Date</I>&#148;), and the aggregate
amount of principal scheduled to be paid under the 1999-1 EETC on the 1999-1 Maturity Date is
$401,494,000, of which $313,130,404.20 relates to the Aircraft. American deposited the entire
proceeds from the sale of the Old Notes with the Trustee under the Indenture and Security Agreement
dated July&nbsp;31, 2009 (the &#147;<I>Indenture</I>&#148;) between American and U.S. Bank Trust National Association, as
trustee (the &#147;<I>Trustee</I>&#148;) to be held by the Trustee as cash collateral (the &#147;<I>Cash Collateral</I>&#148;) for
American&#146;s obligations under the Notes. On and subject to the terms and conditions of the
Indenture, following the payment in full of the equipment notes issued under the 1999-1 EETC and
the release of the liens of the 1999-1 Indentures on each of the Aircraft, American has agreed to
subject the Aircraft to the lien of an Aircraft Security Agreement (the &#147;<I>Aircraft Security
Agreement</I>&#148;) to be entered into among American, the Trustee and U.S. Bank Trust National
Association, as security agent (the &#147;<I>Security Agent</I>&#148;), on or prior to November&nbsp;15, 2009 (the
&#147;<I>Cut-Off Date</I>&#148;). Upon the subjection of an Aircraft to the lien of the Aircraft Security
Agreement, an amount of the Cash Collateral equal to the &#147;Allocable Portion&#148; (as described herein)
of the Notes attributable to such Aircraft will be released to American so long as no Event of
Default shall have occurred and be continuing.
</DIV>

</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement for any reason on or prior to the Cut-Off Date, on January&nbsp;5, 2010 (the &#147;<I>Cut-Off
Redemption Date</I>&#148;), American will be required to redeem the Allocable Portion of the Notes
attributable to each such Aircraft not subjected to the lien of the Aircraft Security Agreement.
The redemption price will be the Allocable Portion of the Notes attributable to each such Aircraft,
together with accrued and unpaid interest on such Allocable Portion, and the Make-Whole Amount (if
any) with respect to such Allocable Portion. Notwithstanding the foregoing, no Make-Whole Amount
will be payable in the case of a redemption because of the occurrence of an event that would
constitute an &#147;Event of Loss&#148; under the applicable 1999-1 Indenture, whether or not such 1999-1
Indenture is in full force or effect (each such event, a &#147;<I>1999-1 Event of Loss</I>&#148;) with respect to
such Aircraft (or an event that would constitute such a 1999-1 Event of Loss but for the
requirement that notice be given or time elapse or both). Upon any such partial redemption with
respect to an Aircraft, the amount of the Cash Collateral equal to the Allocable Portion of the
Notes attributable to such Aircraft will be released to American so long as no Event of Default
shall have occurred and be continuing, and the obligation of American thereafter to make the
scheduled interest and principal payments with respect to such Allocable Portion of the Notes will
cease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The investment earnings on all Cash Collateral shall be paid over to American on the last day
on which any Cash Collateral with respect to the Allocable Portion of the Notes attributable to any
Aircraft is released to American. The amount of Cash Collateral with respect to the Allocable
Portion of the Notes attributable to each Aircraft to be released in connection with the subjection
of such Aircraft to the lien of the Aircraft Security Agreement or in connection with a partial
redemption as discussed in the preceding paragraph is set forth under
&#147;&#151; The Aircraft&#148; in this prospectus summary. American will use any Cash Collateral and any
investment earnings thereon released to it to reimburse itself in part for the repayment of the
equipment notes issued under the 1999-1 EETC.
</DIV>

</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Summary of Terms of Notes</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Principal amount
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" colspan="3">$276,400,000</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Initial loan to Aircraft value ratio
(cumulative)<SUP style="font-size: 85%; vertical-align: text-top">(1)(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" colspan="3">65.0%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Expected maximum loan to Aircraft value ratio
(cumulative)<SUP style="font-size: 85%; vertical-align: text-top">(2)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" colspan="3">65.0%</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Expected principal distribution window (in years
from Issuance Date)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" colspan="3">0.5-7.0</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Initial average life
(in years from Issuance Date)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" colspan="3">4.3</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Payment Dates
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">February 1 and August 1
</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Scheduled Maturity Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">August&nbsp;1, 2016
</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;1110 protection<SUP style="font-size: 85%; vertical-align: text-top">(3)</SUP>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">Yes
</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>This percentage is calculated as of the Cut-Off Date and assumes that all of the Aircraft
have been subjected to the lien of the Aircraft Security Agreement as of such date. In
calculating this percentage, we have assumed that the aggregate appraised value of the
Aircraft is $425,233,333 as of such date. The appraisal value is only an estimate and
reflects certain assumptions. See &#147;Description of the Aircraft and the Appraisals &#151; The
Appraisals.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>See &#147;Loan to Aircraft Value Ratios of Notes&#148; in this prospectus summary for the method and
assumptions we used in calculating the loan to Aircraft value ratios and a discussion of
certain ways that such loan to Aircraft value ratios could change.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>American deposited the entire proceeds from the sale of the Old Notes with the Trustee to be
held as Cash Collateral for American&#146;s obligations under the Notes until the date on which
American has repaid the 1999-1 EETC with respect to each Aircraft and subjected each such
Aircraft to the lien of the Aircraft Security Agreement. There will be Section&nbsp;1110
protection with respect to any Aircraft subjected to the lien of the Aircraft Security
Agreement but not with respect to the Cash Collateral. See &#147;Risk Factors &#151; Risk Factors
Relating to the Notes and the Exchange Offer &#151; Payment on the Notes and the ability to
exercise remedies with respect to certain collateral may be restricted in the case of a
bankruptcy of American.&#148;</TD>
</TR>

</TABLE>


</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>The Aircraft</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes are expected to be secured by a lien on each of 12 Boeing aircraft, consisting of
nine Boeing 737-823 aircraft, one Boeing 767-323ER aircraft and two Boeing 777-223ER aircraft
delivered new to American from May&nbsp;1999 to September&nbsp;1999 (each, an &#147;<I>Aircraft</I>&#148; and, collectively,
the &#147;<I>Aircraft</I>&#148;). All of the Aircraft are being operated by American. See &#147;Description of the
Aircraft and the Appraisals&#148; for a description of each Aircraft.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On and subject to the terms and conditions of the Indenture, American has agreed to enter into
a secured debt financing with respect to each Aircraft on or prior to the Cut-Off Date. Set forth
below is certain information about the Aircraft expected to secure the Notes:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Allocable Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>of the Notes on</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Registration</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Manufacturer&#146;s</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>the Cut-Off</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Appraised</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Aircraft Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Serial Number</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Delivery Date</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Date</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N909AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5/19/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">17,069,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">26,260,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N910AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5/26/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,069,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,260,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N912AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6/25/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,153,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,390,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N914AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/19/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,238,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,520,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N915AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7/28/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,238,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,520,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N916AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8/6/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,316,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,640,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N917AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8/27/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,316,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,640,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N918AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9/10/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,770,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N919AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9/15/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,770,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 767-323ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N399AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5/28/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,097,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 777-223ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N778AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6/21/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,552,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,156,667</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 777-223ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">N779AN</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6/27/1999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47,552,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73,156,667</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>276,400,000</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left"><B>$</B></TD>
    <TD align="right"><B>425,233,333</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The Allocable Portion of the Notes on the Cut-Off Date set forth above with respect to each
Aircraft represents the portion of the principal amount of the Notes attributable to such
Aircraft as of such date. The Allocable Portion of the Notes with respect to each Aircraft
will not change from the amount set forth above during the period from the Issuance Date to
the first Payment Date unless any Allocable Portion of the Notes is redeemed as set forth
under &#147;Description of the Notes &#151; Redemption.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The appraised value of each Aircraft set forth above is the lesser of the average and median
appraised value of such Aircraft as appraised by three independent appraisal and consulting
firms. Such appraisals indicate appraised current market value of such Aircraft at or around
the time of such appraisals. The appraisers based their appraisals on varying assumptions
(which may not reflect accurately current market conditions) and methodologies. See
&#147;Description of the Aircraft and the Appraisals &#151; The Appraisals.&#148; An appraisal is only an
estimate of value and you should not rely on any appraisal as a measure of realizable value.
See &#147;Risk Factors &#151; Risk Factors Relating to the Notes and the Exchange Offer &#151; Appraisals
should not be relied upon as a measure of realizable value of the Aircraft.&#148;</TD>
</TR>

</TABLE>


</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Loan to Aircraft Value Ratios</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides loan to Aircraft value ratios (&#147;<I>LTVs</I>&#148;) for the Notes as of the
Cut-Off Date and each Payment Date, assuming that all of the Aircraft have been subjected to the
lien of the Aircraft Security Agreement on or prior to the Cut-Off Date. See &#147;&#151; Summary of
Transaction and Use of Proceeds&#148; in this prospectus summary. The table is not a forecast or
prediction of expected or likely LTVs, but simply a mathematical calculation based upon one set of
assumptions. See &#147;Risk Factors &#151; Risk Factors Relating to the Notes and the Exchange Offer &#151;
Appraisals should not be relied upon as a measure of realizable value of the Aircraft.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We compiled the following table on an aggregate basis. The Notes are issued pursuant to the
Indenture, and all of the Aircraft, subject to the terms and conditions of the Indenture, are
expected to be subjected to the lien of the Aircraft Security Agreement as security for American&#146;s
obligations on the Notes issued under the Indenture. This means that all proceeds realized from
the sale of any Aircraft or other exercise of default remedies will be available to cover any
shortfalls on the Notes. The relevant LTVs in a default situation for the Notes would depend on
various factors, including the extent to which the debtor or trustee in bankruptcy agrees to
perform American&#146;s obligations under the Indenture and the Aircraft Security Agreement. Therefore,
the following LTVs are presented for illustrative purpose only.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Balance</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV%</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(3)</B></SUP></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">425,233,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">276,400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">416,121,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">257,994,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">407,009,048</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">240,135,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">397,896,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">222,821,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">388,784,762</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">206,055,656</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">379,672,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">189,836,042</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">370,560,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,163,156</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">361,448,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">159,036,999</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">352,336,190</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">144,457,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">343,224,048</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,424,870</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">334,111,905</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116,938,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">321,962,381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,027,693</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">309,812,857</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">89,845,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">297,663,333</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,392,198</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">285,513,810</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>In calculating the aggregate Assumed Aircraft Value, we assumed that the appraised value of
each Aircraft determined as described under &#147;Description of the Aircraft and the Appraisals&#148;
declines in accordance with the Depreciation Assumption described under &#147;Description of the
Notes &#151; Loan to Value Ratios of Notes.&#148; Other rates or methods of depreciation could result
in materially different LTVs. We cannot assure you that the depreciation rate and method
assumed for purposes of the above table are the ones most likely to occur or predict the
actual future value of any Aircraft. See &#147;Risk Factors &#151; Risk Factors Relating to the Notes
and the Exchange Offer &#151; Appraisals should not be relied upon as a measure of realizable value
of the Aircraft.&#148;</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>The &#147;principal balance&#148; indicates, as of any date, after giving effect to any principal
payments scheduled to be made on such date, the portion of the original principal amount of
the Notes that has not been paid to the Noteholders and assumes that all of the Aircraft have
been subjected to the lien of the Aircraft Security Agreement as of the Cut-Off Date.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(3)</TD>
    <TD>&nbsp;</TD>
    <TD>We obtained the LTVs for the Cut-Off Date and each Payment Date by dividing (<I>i</I>) the expected
outstanding principal balance of the Notes after giving effect to any principal payment
scheduled to be made on such date,</TD>
</TR>

</TABLE>


</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">



<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by (<I>ii</I>) the aggregate Assumed Aircraft Value of the
Aircraft on such date based on the assumptions described above. The outstanding principal
balances and LTVs will change if any Allocable Portion of the Notes is redeemed as set forth
under &#147;Description of the Notes &#151; Redemption&#148; or if a default in payment of principal on the
Notes occurs.</TD>
</TR>

</TABLE>
</DIV>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">

<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Summary of the Terms of the Exchange Offer</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">The Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">On July&nbsp;31, 2009 (the &#147;<I>Issuance Date</I>&#148;), we issued and
privately placed $276,400,000 aggregate principal amount of
13% 2009-2 Secured Notes due 2016 pursuant to exemptions
from the registration requirements of the Securities Act.
The Initial Purchasers for the Old Notes were Morgan
Stanley &#038; Co. Incorporated and Stifel, Nicolaus &#038; Company,
Incorporated (the &#147;<I>Initial Purchasers</I>&#148;).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When we use the term &#147;<I>Old Notes</I>&#148; in this prospectus, we
mean the 13% 2009-2 Secured Notes due 2016 which were
privately placed with the Initial Purchasers on July&nbsp;31,
2009, and were not registered with the SEC.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When we use the term &#147;<I>New Notes</I>&#148; in this prospectus, we
mean the 13% 2009-2 Secured Notes due 2016 registered with
the Commission and offered hereby in exchange for the Old
Notes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">When we use the term &#147;<I>Notes</I>&#148; in this prospectus, the
related discussion applies to both the Old Notes and the
New Notes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The terms of the New Notes are identical in all material
respects to the terms of the Old Notes, except that the New
Notes are registered under the Securities Act and will not
be subject to restrictions on transfer, will bear a
different CUSIP and ISIN number than the Old Notes, will
not entitle their holders to registration rights and will
be subject to terms relating to book-entry procedures and
administrative terms relating to transfers that differ from
those of the Old Notes.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">The Exchange Offer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You may exchange Old Notes for a like principal amount of
New Notes. The consummation of the exchange offer is not
conditioned upon any minimum or maximum aggregate principal
amount of Old Notes being tendered for exchange.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Resale of New Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We believe the New Notes that will be issued in the
exchange offer may be resold by most investors without
compliance with the registration and prospectus delivery
provisions of the Securities Act, subject to certain
conditions. You should read the discussion under the
heading &#147;The Exchange Offer&#148; for further information
regarding the exchange offer and resale of the New Notes.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</div>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Registration Rights Agreement
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We have undertaken the exchange offer pursuant to the terms
of the Registration Rights Agreement we entered into with
the Initial Purchasers, dated July&nbsp;31, 2009 (the
&#147;<I>Registration Rights Agreement</I>&#148;). Pursuant to the
Registration Rights Agreement, American agreed, at no cost
to the Noteholders, (<I>a</I>) either to consummate an exchange
offer for the Notes pursuant to an effective registration
statement, or to cause resales of the Notes to be
registered under the Securities Act (the &#147;<I>Registration
Condition</I>&#148;), and (<I>b</I>) to obtain ratings for the Notes from
each of Moody&#146;s and Standard &#038; Poor&#146;s (the &#147;<I>Rating
Condition</I>&#148;). If either the Registration Condition or the
Rating Condition is not satisfied on or before December&nbsp;31,
2009, the interest rate on the Notes will permanently
increase by 1.00% starting on January&nbsp;1, 2010. See &#147;The
Exchange Offer&#148; and &#147;Exchange Offer; Registration Rights;
Ratings.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">Consequences of Failure to Exchange
the Old Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You will continue to hold Old Notes that remain subject to
their existing transfer restrictions if:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-19px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;you do not tender your Old Notes; or</DIV></TD>
</TR>

<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-19px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;you tender your Old Notes and they are not accepted
for exchange.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">We will have no obligation to register the Old Notes after
we consummate the exchange offer. See &#147;The Exchange
Offer&#151;Terms of the Exchange Offer; Period for Tendering Old
Notes.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Expiration Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exchange offer will expire at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 , New York
City time, on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009 (the &#147;<I>Expiration
Date</I>&#148;), unless we extend it, in which case Expiration Date
means the latest date and time to which the exchange offer
is extended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Conditions to the Exchange Offer
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exchange offer is subject to several customary
conditions. We will not be required to accept for exchange,
or to issue New Notes in exchange for, any Old Notes, and
we may terminate or amend the exchange offer, if we
determine in our reasonable judgment at any time before the
Expiration Date that the exchange offer would violate
applicable law or any applicable interpretation of the
staff of the SEC. The foregoing conditions are for our sole
benefit and may be waived by us at any time. In addition,
we will not accept for exchange any Old Notes tendered, and
no New Notes will be issued in exchange for any such Old
Notes, if at any time any stop order is threatened or in
effect with respect to:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-19px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;the registration statement of which this prospectus
constitutes a part; or</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-19px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;the qualification of the Indenture under the Trust
Indenture Act of 1939, as amended (the &#147;<I>Trust Indenture
Act</I>&#148;).</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;The Exchange Offer&#151;Conditions to the Exchange Offer.&#148;
We reserve the right to terminate or amend the exchange
offer at any time prior to the Expiration Date upon the
occurrence of any of the foregoing events.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</div>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Procedures for Tendering Old Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If you wish to accept the exchange offer, you must tender
your Old Notes and do the following on or prior to the
Expiration Date, unless you follow the procedures described
under &#147;The Exchange Offer&#151;Guaranteed Delivery Procedures:&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-19px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;if Old Notes are tendered in accordance with the
book-entry procedures described under &#147;The Exchange
Offer&#151;Book-Entry Transfer,&#148; transmit an Agent&#146;s Message to
the Exchange Agent through the Automated Tender Offer
Program (&#147;A<I>TOP</I>&#148;) of The Depositary Trust Company (&#147;<I>DTC</I>&#148;),
or</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:41px; text-indent:-19px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;&nbsp;transmit a properly completed and duly executed
letter of transmittal, or a facsimile copy thereof, to the
Exchange Agent, including all other documents required by
the letter of transmittal.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;The Exchange Offer&#151;Procedures for Tendering Old Notes.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Guaranteed Delivery Procedures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">If you wish to tender your Old Notes, but cannot properly
do so prior to the Expiration Date, you may tender your Old
Notes according to the guaranteed delivery procedures set
forth under &#147;The Exchange Offer&#151;Guaranteed Delivery
Procedures.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Withdrawal Rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tenders of Old Notes may be withdrawn at any time prior to
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, New York City time, on the Expiration Date.
To withdraw a tender of Old Notes, a notice of withdrawal
must be actually received by the Exchange Agent at its
address set forth in &#147;The Exchange Offer&#151;Exchange Agent&#148;
prior to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, New York City time, on the
Expiration Date. See &#147;The Exchange Offer&#151;Withdrawal
Rights.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">Acceptance of Old Notes and Delivery
of New Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Except in some circumstances, any and all Old Notes that
are validly tendered in the exchange offer prior to
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, New York City time, on the Expiration Date will be
accepted for exchange. The New Notes issued pursuant to the
exchange offer will be delivered promptly after such
acceptance. See &#147;The Exchange Offer&#151;Acceptance of Old Notes
for Exchange; Delivery of New Notes.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certain U.S. Federal Tax Considerations
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The exchange of the Old Notes for the New Notes will not
constitute a taxable exchange for U.S. federal income tax
purposes. See &#147;Certain U.S. Federal Income Tax
Considerations.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exchange Agent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">U.S. Bank National Association<SUP style="font-size: 85%; vertical-align: text-top"> </SUP>is serving as the
Exchange Agent (the &#147;<I>Exchange Agent</I>&#148;).</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</div>

<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>The Notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The forms and terms of the New Notes are the same in all material respects as the form and
terms of the Old Notes, except that the New Notes:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are registered under the Securities Act and will not be subject to restrictions on
transfer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will bear a different CUSIP and ISIN number than the Old Notes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not entitle their holders to registration rights; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will be subject to terms relating to book-entry procedures and administrative terms
relating to transfers that differ from those of the Old Notes.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Issuer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">American Airlines, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">The Notes
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$276,400,000 principal amount of 13.0% 2009-2 Secured Notes due 2016</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Trustee and Security Agent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">U.S. Bank Trust National Association</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Principal
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payments of principal on the Notes will be made on each Payment Date as
follows:</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Payment Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Principal Payment Amount</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,405,129.71</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,859,800.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,313,071.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,766,342.88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,219,614.32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,672,885.72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,126,157.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,579,428.57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,032,700.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,485,971.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,911,204.82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,182,233.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,453,261.99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,392,198.11</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Scheduled Maturity Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">August&nbsp;1, 2016</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Notes bear interest at the rate of 13.0% per annum. If either the
Registration Condition or the Rating Condition is not satisfied on or
before December&nbsp;31, 2009, the interest rate on the Notes will permanently
increase by 1.00% starting on January&nbsp;1, 2010. See &#147;Exchange Offer;
Registration Rights; Ratings.&#148; Interest on the Notes accrues from the
most recent date to which interest has been paid or, if no interest has
been paid, from the Issuance Date. Interest on the Notes is calculated
on the basis of a 360-day year consisting of twelve 30-day months.
Interest is payable on the Notes on each Payment Date, commencing on
February&nbsp;1, 2010.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Payment Dates
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February 1 and August&nbsp;1, commencing on February&nbsp;1, 2010.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Record Dates
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The fifteenth day preceding the related Payment Date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Collateral
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Initially, the Notes are secured by the Cash Collateral. Cash Collateral
may be released from time to time as Aircraft are subjected to the lien
of the Aircraft Security Agreement as set forth under &#147;Description of the
Notes &#151; Collateral &#151; Release of Cash Collateral.&#148;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</div>

<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">After the 1999-1 Maturity Date and the release of the Aircraft from the
liens created under the 1999-1 Indentures, subject to the terms and
conditions of the Indenture, the Notes are expected to be secured by a
lien on each Aircraft under the Aircraft Security Agreement. The pool of
Aircraft is expected to consist of 12 Boeing aircraft owned by American,
consisting of nine Boeing 737-823 aircraft, one Boeing 767-323ER aircraft
and two Boeing 777-223ER aircraft, each of which was delivered new to
American during the period from May&nbsp;1999 to September&nbsp;1999. The lien on
the Aircraft under the Aircraft Security Agreement may be released from
time to time as set forth under &#147;Description of the Notes &#151; Redemption.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Redemption
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Mandatory Redemption</I>. If fewer than all of the Aircraft have been
subjected to the lien of the Aircraft Security Agreement for any reason
on or prior to the Cut-Off Date, on the Cut-Off Redemption Date, American
will be required to redeem the Allocable Portion of the Notes
attributable to each such Aircraft not subjected to the lien of the
Aircraft Security Agreement. The redemption price will be the Allocable
Portion of the Notes attributable to each such Aircraft, together with
accrued and unpaid interest on such Allocable Portion, and the Make-Whole
Amount (if any) with respect to such Allocable Portion. Notwithstanding
the foregoing, no Make-Whole Amount will be payable in the case of a
redemption because of the occurrence of a 1999-1 Event of Loss with
respect to such Aircraft (or an event that would constitute a 1999-1
Event of Loss but for the requirement that notice be given or time elapse
or both). Upon any such partial redemption with respect to an Aircraft,
the amount of the Cash Collateral equal to the Allocable Portion of the
Notes attributable to such Aircraft will be released to American so long
as no Event of Default shall have occurred and be continuing, and the
obligation of American thereafter to make the scheduled interest and
principal payments with respect to such Allocable Portion of the Notes
will cease. The investment earnings on all such Cash Collateral shall be
paid over to American on the last day on which any Cash Collateral with
respect to the Allocable Portion of the Notes attributable to any
Aircraft is released to American.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In addition, if an Event of Loss occurs with respect to an Aircraft that
has been subjected to the lien of the Aircraft Security Agreement,
American will either:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;substitute for such Aircraft under the Aircraft Security
Agreement an aircraft meeting certain requirements; or</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;redeem the Allocable Portion of the Notes attributable such
Aircraft.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The redemption price in such case will be the Allocable Portion of the
Notes attributable to such Aircraft, together with accrued and unpaid
interest on such Allocable Portion, but without any premium. Following
such partial redemption, the lien on such Aircraft under the Aircraft
Security Agreement will be released and such Aircraft will no longer
secure the amounts that may be owing under the Indenture. In addition,
the obligation of American thereafter to make the scheduled interest and
principal payments with respect to such Allocable Portion of the Notes
will cease.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;Description of the Notes &#151; Redemption &#151; Mandatory Redemption&#148; for
further details. The Allocable Portion of the Notes with respect to each
Aircraft on the Cut-Off Date and each Payment Date is set forth in
Appendix
III. For any date before the first Payment Date, the Allocable
Portion of the Notes with respect to each Aircraft will be the amount
specified in Appendix</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</div>

<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="67%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">III for the Cut-Off Date. For any date after the
first Payment Date, other than a Payment Date, the Allocable Portion of
the Notes with respect to each Aircraft will be the amount specified in
Appendix&nbsp;III for the Payment Date that immediately precedes such date.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>Optional Redemption</I>. American may elect to redeem all, but not less than
all, of the Notes at any time prior to the Scheduled Maturity Date. The
redemption price will be the unpaid principal amount of the Notes,
together with accrued and unpaid interest thereon, plus the Make-Whole
Amount (if any). Following such redemption, the lien on the Aircraft
under the Aircraft Security Agreement will be released. See &#147;Description
of the Equipment Notes &#151; Redemption &#151; Optional Redemption.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;1110 Protection
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">It is a condition to the subjection of an Aircraft to the lien of the
Aircraft Security Agreement that American&#146;s General Counsel provide an
opinion to the Trustee and the Security Agent that the benefits of
Section&nbsp;1110 (&#147;<I>Section&nbsp;1110</I>&#148;) of the U.S. Bankruptcy Code (&#147;<I>Bankruptcy
Code</I>&#148;) will be available with respect to such Aircraft. The Cash
Collateral and any other cash held as collateral as a result of the
exercise of remedies under the Aircraft Security Agreement will not be
entitled to the benefits of Section&nbsp;1110. See &#147;Risk Factors &#151; Risk
Factors Relating to the Notes and the Exchange Offer &#151; Payment on the
Notes and the ability to exercise remedies with respect to certain
collateral may be restricted in the case of a bankruptcy of American.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ratings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pursuant to the Registration Rights Agreement, American agreed, at no
cost to the Noteholders, to obtain ratings for the Notes from each of
Moody&#146;s and Standard &#038; Poor&#146;s. If the Rating Condition is not satisfied
on or before December&nbsp;31, 2009, the interest rate on the Notes will
permanently increase by 1.00% starting on January&nbsp;1, 2010. See &#147;Exchange
Offer; Registration Rights; Ratings.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Certain ERISA Considerations
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Each person who acquires a Note or any interest therein will be deemed to
have represented that either:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;no assets of (<I>a</I>) an employee benefit plan subject to Title I of
the Employee Retirement Income Security Act of 1974, as amended, (<I>b</I>) a
plan described in Section&nbsp;4975(e)(1) of the Internal Revenue Code of
1986, as amended, (<I>c</I>) an entity whose underlying assets are deemed to
include assets of any such employee benefit plan or plan, or (<I>d</I>) a
foreign governmental or church plan that is subject to any U.S. federal,
state, local or foreign law or regulation that is substantially similar
to Section&nbsp;406 of ERISA or Section&nbsp;4975 of the Code have been used to
purchase such Note or interest therein; or</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-15px"><B>&#149;</B>&nbsp;&nbsp;&nbsp;the purchase and holding of such Note or interest therein by such
person are exempt from the prohibited transaction restrictions of ERISA,
the Code or any similar provision of Similar Law, as applicable, pursuant
to one or more prohibited transaction statutory or administrative
exemptions.</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">See &#147;Certain ERISA Considerations.&#148;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Governing Law
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Notes are governed by the laws of the State of New York.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
</div>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<P>
<DIV style="width: 100%; border: 1px solid black; padding: 11px;">


<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Ratio of Earnings to Fixed Charges</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Six Months Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>June 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000"><B>Year Ended December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2009</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2006</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">2004</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ratio of earnings to fixed charges (1)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>As of June&nbsp;30, 2009, American guaranteed approximately $425&nbsp;million of unsecured debt of its
parent, AMR Corporation and approximately $284&nbsp;million of secured debt of AMR Eagle. The
impact of these unconditional guarantees is not included in the above computation. Earnings
were inadequate to cover fixed charges by $2,564&nbsp;million, $956&nbsp;million, $898&nbsp;million, $774
million and $1,820&nbsp;million for the years ended December&nbsp;31, 2008, December&nbsp;31, 2005, December
31, 2004, the six months ended June&nbsp;30, 2009 and the six months ended June&nbsp;30, 2008,
respectively.</TD>
</TR>

</TABLE>


</DIV>



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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should carefully consider all of the information contained in or incorporated by reference
in this prospectus, including but not limited to, our and AMR&#146;s Annual Reports on Form 10-K for the
year ended December&nbsp;31, 2008 (and, in the case of AMR, as updated by AMR&#146;s Current Report on Form
8-K filed on April&nbsp;21, 2009), our and AMR&#146;s Quarterly Reports on Form 10-Q for the quarters ended
March&nbsp;31, 2009 and June&nbsp;30, 2009. In addition, you should carefully consider the risk factors
described below, along with any risk factors that may be included in our future reports to the SEC.</I>
</DIV>

<DIV align="left">
<A name="112"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risk Factors Relating to the Company</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to become profitable and our ability to continue to fund our obligations on an
ongoing basis will depend on a number of risk factors, many of which are largely beyond our
control. Some of the factors that may have a negative impact on us are described below:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>As a result of significant losses in recent years, our financial condition has been
materially weakened.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We incurred significant losses in 2001-2005, which materially weakened our financial
condition. We lost $892&nbsp;million in 2005, $821&nbsp;million in 2004, $1.3&nbsp;billion in 2003, $3.5&nbsp;billion
in 2002 and $1.6&nbsp;billion in 2001. Although we earned a profit of $356&nbsp;million in 2007 and $164
million in 2006, we lost $2.5&nbsp;billion in 2008 (which included a $1.0&nbsp;billion impairment charge) and
$754&nbsp;million in the six months ended June&nbsp;30, 2009. Because of our weakened financial condition,
we are vulnerable both to the impact of unexpected events (such as terrorist attacks or spikes in
jet fuel prices) and to deterioration of the operating environment (such as a deepening of the
current global recession or significant increased competition).
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>The severe global economic downturn has resulted in weaker demand for air travel and
lower investment asset returns, which may have a significant negative impact on us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are experiencing significantly weaker demand for air travel driven by the severe downturn
in the global economy. Many of the countries we serve are experiencing economic slowdowns or
recessions. We began to experience weakening demand late in 2008, and this weakness has continued
in 2009. We reduced capacity in 2008, and in 2009 we have announced additional reductions to our
capacity plan for this year. If the global economic downturn persists or worsens, demand for air
travel may continue to weaken. No assurance can be given that capacity reductions or other steps
we may take will be adequate to offset the effects of reduced demand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The economic downturn has resulted in broadly lower investment asset returns and values, and
our pension assets suffered a material decrease in value in 2008 related to broader stock market
declines, which will result in higher pension expense in 2009 and future years and higher required
contributions in future years. In addition, under these unfavorable economic conditions, the
amount of the cash reserves we are required to maintain under our credit card processing agreements
may increase substantially. These issues individually or collectively may have a material adverse
impact on our liquidity. Also, disruptions in the capital markets and other sources of funding may
make it impossible for us to obtain necessary additional funding or make the cost of that funding
prohibitive.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We face numerous challenges as we seek to maintain sufficient liquidity, and we will
need to raise substantial additional funds. We may not be able to raise those funds, or to
do so on acceptable terms.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have significant debt, lease and other obligations in the next several years, including
significant pension funding obligations. For example, in 2009 we will be required to make
approximately $1.3&nbsp;billion of principal payments on long term debt and payments on capital leases,
and we expect to make approximately $1.6&nbsp;billion of capital expenditures. In addition, the global
economic downturn, potential increases in the amount of required reserves under credit card
processing agreements, and the obligation to post cash collateral on fuel hedging contracts have
negatively impacted, and may in the future negatively impact, our liquidity. To meet our
commitments and to maintain sufficient liquidity as we continue to implement our restructuring and
cost reduction initiatives, we will need continued access to substantial additional funding.
Moreover, while we have arranged financings that, subject
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">to certain terms and conditions
(including, in the case of one of the financing arrangements covering twelve aircraft, a condition
that, at the time of borrowing, we have a certain amount of unrestricted cash and short term
investments), cover all of our 2009-2011 aircraft delivery commitments through 2011, we will also
need to raise substantial additional funds to meet our commitments to purchase aircraft and execute
our fleet replacement plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to obtain future financing is limited by the value of our unencumbered assets. A
very large majority of our aircraft assets (including most of our aircraft eligible for the
benefits of Section&nbsp;1110) are encumbered. Also, the market value of our aircraft assets has
declined in recent years, and may continue to decline.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the terrorist attacks of September&nbsp;2001 (the &#147;<I>Terrorist Attacks</I>&#148;), our credit ratings
have been lowered to significantly below investment grade. These reductions have increased our
borrowing costs and otherwise adversely affected borrowing terms, and limited borrowing options.
Additional reductions in our credit ratings might have other effects on us, such as further
increasing borrowing or other costs or further restricting our ability to raise funds.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of other factors, including our financial results in recent years, our substantial
indebtedness, the difficult revenue environment we face, our reduced credit ratings, recent
historically high fuel prices, and the financial difficulties experienced in the airline industry,
adversely affect the availability and terms of funding for us. In addition, the global economic
downturn and recent severe disruptions in the capital markets and other sources of funding have
resulted in greater volatility, less liquidity, widening of credit spreads, and substantially more
limited availability of funding. As a result of these and other factors, although we believe we
can access sufficient liquidity to fund our operations and obligations for the remainder of 2009,
there can be no assurance that we will be able to do so. An inability to obtain necessary
additional funding on acceptable terms would have a material adverse impact on us and on our
ability to sustain our operations.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>The amount of the reserves we are required to maintain under our credit card processing
agreements could increase substantially, which would materially adversely impact our
liquidity.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American has agreements with a number of credit card companies and processors to accept credit
cards for the sale of air travel and other services. Under certain of American&#146;s current credit
card processing agreements, the related credit card company or processor may hold back, under
certain circumstances, a reserve from American&#146;s credit card receivables.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under one such agreement, which was recently amended, the amount of such reserve generally is
based on the amount of unrestricted cash (not including undrawn credit facilities) held by the
Company and the processor&#146;s exposure to the Company under the agreement. Given the volatility of
fuel prices and revenues, uncertainty in the capital markets and uncertainty about other sources of
funding, and other factors, it is difficult to forecast the required amount of such reserve at any
time. The amount of the reserve was $154&nbsp;million as of June&nbsp;30, 2009. The agreement limits the
maximum amount of the reserve (determined as described above) during the period ending February&nbsp;15,
2010, and the Company currently estimates such maximum amount during that period to be
approximately $300&nbsp;million. However, if current conditions persist, absent a waiver or
modification of the agreement, such required amount could be substantially greater after such
period.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our initiatives to generate additional revenues and to reduce our costs may not be
adequate or successful.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As we seek to improve our financial condition, we must continue to take steps to generate
additional revenues and to reduce our costs. Although we have a number of initiatives underway to
address our cost and revenue challenges, some of these initiatives involve changes to our business
which we may be unable to implement. In addition, we expect that, as time goes on, it will be
progressively more difficult to identify and implement significant revenue enhancement and cost
savings initiatives. The adequacy and ultimate success of our initiatives to generate additional
revenues and reduce our costs are not known at this time and cannot be assured. Moreover, whether
our initiatives will be adequate or successful depends in large measure on factors beyond our
control, notably the overall industry environment, including passenger demand, yield and industry
capacity growth, and fuel prices. It will be very difficult for us to continue to fund our
obligations on an ongoing basis, and to return to
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">profitability, if the overall industry revenue
environment does not improve substantially or if fuel prices were to increase and persist for an
extended period at high levels.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We may be adversely affected by increases in fuel prices, and we would be adversely
affected by disruptions in the supply of fuel.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our results are very significantly affected by the volatile price and the availability of jet
fuel, which are in turn affected by a number of factors beyond our control. Fuel prices have only
recently declined from historic high levels.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to the competitive nature of the airline industry, we may not be able to pass on increased
fuel prices to customers by increasing fares. Although we had some success in raising fares and
imposing fuel surcharges in reaction to recent high fuel prices, these fare increases and
surcharges did not keep pace with the extraordinary increases in the price of fuel that occurred in
2007 and 2008. Furthermore, even though fuel prices have declined significantly from their recent
historic high levels, reduced demand or increased fare competition, or both, and resulting lower
revenues may offset any potential benefit of these lower fuel prices.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we do not currently anticipate a significant reduction in fuel availability, dependence
on foreign imports of crude oil, limited refining capacity and the possibility of changes in
government policy on jet fuel production, transportation and marketing make it impossible to
predict the future availability of jet fuel. If there are additional outbreaks of hostilities or
other conflicts in oil producing areas or elsewhere, or a reduction in refining capacity (due to
weather events, for example), or governmental limits on the production or sale of jet fuel, there
could be a reduction in the supply of jet fuel and significant increases in the cost of jet fuel.
Major reductions in the availability of jet fuel or significant increases in its cost would have a
material adverse impact on us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a large number of older aircraft in our fleet, and these aircraft are not as fuel
efficient as more recent models of aircraft. We believe it is imperative that we continue to
execute our fleet renewal plans. However, due to the recent machinist strike at Boeing, deliveries
of the Boeing 737-800 aircraft we currently have on order have been delayed. In addition, we
expect delays in the deliveries of the Boeing 787-9 aircraft we currently have on order.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While we seek to manage the risk of fuel price increases by using derivative contracts, there
can be no assurance that, at any given time, we will have derivatives in place to provide any
particular level of protection against increased fuel costs. In addition, a deterioration of our
financial position could negatively affect our ability to enter into derivative contracts in the
future. Moreover, declines in fuel prices below the levels established in derivative contracts may
require us to post cash collateral to secure the loss positions on such contracts, and if such
contracts close when fuel prices are below the applicable levels, we would be required to make
payments to close such contracts; these payments would be treated as additional fuel expense.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our indebtedness and other obligations are substantial and could adversely affect our
business and liquidity.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have and will continue to have significant amounts of indebtedness, obligations to make
future payments on aircraft equipment and property leases, and obligations under aircraft purchase
agreements, as well as a high proportion of debt to equity capital. In 2009, we will be required
to make approximately $1.3&nbsp;billion of principal payments on long-term debt and payments on capital
leases. We expect to incur substantial additional debt (including secured debt) and lease
obligations in the future. We also have substantial pension funding obligations. Our substantial
indebtedness and other obligations have important consequences. For example, they:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our ability to obtain additional funding for working capital, capital
expenditures, acquisitions and general corporate purposes, and adversely affect the
terms on which such funding can be obtained;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require us to dedicate a substantial portion of our cash flow from operations to
payments on our indebtedness and other obligations, thereby reducing the funds
available for other purposes;</TD>
</TR>



</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make us more vulnerable to economic downturns; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>limit our ability to withstand competitive pressures and reduce our flexibility in
responding to changing business and economic conditions.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We may be unable to comply with our financial covenants.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American has a $433&nbsp;million secured bank term loan facility (the &#147;<I>Credit Facility</I>&#148;) with a
final maturity on December&nbsp;17, 2010. The Credit Facility contains a liquidity covenant (the
"<I>Liquidity Covenant</I>&#148;) and a covenant that requires AMR to maintain certain minimum ratios of cash
flow to fixed charges (the &#147;<I>EBITDAR Covenant</I>&#148;). We were in compliance with the Liquidity Covenant
as of June&nbsp;30, 2009. In June&nbsp;2009, AMR and American entered into an amendment to the Credit
Facility which waived compliance with the EBITDAR Covenant for the quarter ended June&nbsp;30, 2009;
however, even absent this waiver we would have complied with this covenant as of June&nbsp;30, 2009. In
addition, the amendment reduced the minimum ratios AMR is required to satisfy to 0.95 to 1.00 for
the one, two and three quarter periods ending September&nbsp;30, 2009, December&nbsp;31, 2009 and March&nbsp;31,
2010, respectively, to 1.00 to 1.00 for the four quarter period ending June&nbsp;30, 2010, and to 1.05
to 1.00 for the four quarter period ending September&nbsp;30, 2010. Given the volatility of fuel prices
and revenues, uncertainty in the capital markets and uncertainty about other sources of funding,
and other factors, it is difficult to assess whether we will be able to continue to comply with the
Liquidity Covenant and the EBITDAR Covenant, and there are no assurances that we will be able to do
so. Failure to comply with these covenants would result in a default under the Credit Facility
which &#151; if we did not take steps to obtain a waiver of, or otherwise mitigate, the default &#151; could
result in a default under a significant amount of our other debt and lease obligations, and
otherwise have a material adverse impact on us and our ability to sustain our operations.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our business is affected by many changing economic and other conditions beyond our
control, and our results of operations tend to be volatile and fluctuate due to seasonality.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business and our results of operations are affected by many changing economic and other
conditions beyond our control, including, among others:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actual or potential changes in international, national, regional and local economic,
business and financial conditions, including recession, inflation, higher interest
rates, wars, terrorist attacks or political instability;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in consumer preferences, perceptions, spending patterns or demographic
trends;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in the competitive environment due to industry consolidation and other
factors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>actual or potential disruptions to the air traffic control systems;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>increases in costs of safety, security and environmental measures;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>outbreaks of diseases that affect travel behavior; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>weather and natural disasters.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result, our results of operations tend to be volatile and subject to rapid and unexpected
change. In addition, due to generally greater demand for air travel during the summer, our
revenues in the second and third quarters of the year tend to be stronger than revenues in the
first and fourth quarters of the year.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>The airline industry is fiercely competitive and may undergo further consolidation or
changes in industry alliances, and we are subject to increasing competition.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service over almost all of our routes is highly competitive and fares remain at low levels by
historical standards. We face vigorous, and, in some cases, increasing, competition from major
domestic airlines, national,
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">regional, all-cargo and charter carriers, foreign air carriers,
low-cost carriers and, particularly on shorter segments, ground and rail transportation. We also
face increasing and significant competition from marketing/operational alliances formed by our
competitors. The percentage of routes on which we compete with carriers having substantially lower
operating costs than ours has grown significantly over the past decade, and we now compete with
low-cost carriers on a large majority of our domestic non-stop mainline network routes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain airline alliances have been granted immunity from antitrust regulations by
governmental authorities for specific areas of cooperation, such as joint pricing decisions. To
the extent alliances formed by our competitors can undertake activities that are not available to
us, our ability to effectively compete may be hindered.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pricing decisions are significantly affected by competition from other airlines. Fare
discounting by competitors historically has had a negative effect on our financial results because
we must generally match competitors&#146; fares, since failing to match would result in even less
revenue. We have faced increased competition from carriers with simplified fare structures, which
are generally preferred by travelers. Any fare reduction or fare simplification initiative may not
be offset by increases in passenger traffic, reduction in cost or changes in the mix of traffic
that would improve yields. Moreover, decisions by our competitors that increase or reduce overall
industry capacity, or capacity dedicated to a particular domestic or foreign region, market or
route, can have a material impact on related fare levels.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been numerous mergers and acquisitions within the airline industry and numerous
changes in industry alliances. Recently, two of our largest competitors, Delta Air Lines, Inc. and
Northwest Airlines Corporation, merged, and the combined entity became the largest scheduled
passenger airline in the world in terms of available seat miles and revenue passenger miles. In
addition, another two of our largest competitors, United Air Lines, Inc. and Continental Airlines,
Inc., recently announced that they had entered into a framework agreement to cooperate extensively
and under which Continental would join the global alliance of which United, Lufthansa and certain
other airlines are members.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the future, there may be additional mergers and acquisitions, and changes in airline
alliances, including those that may be undertaken in response to the merger of Delta and Northwest
or other developments in the airline industry. Any airline industry consolidation or changes in
airline alliances could substantially alter the competitive landscape and result in changes in our
corporate or business strategy. We regularly assess and explore the potential for consolidation in
our industry and changes in airline alliances, our strategic position and ways to enhance our
competitiveness, including the possibilities for our participation in merger activity.
Consolidation involving other participants in our industry could result in the formation of one or
more airlines with greater financial resources, more extensive networks, and/or lower cost
structures than exist currently, which could have a material adverse effect on us. For similar
reasons, changes in airline alliances could also adversely affect our competitive position.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2008, we entered into a joint business agreement and related marketing arrangements with
British Airways and Iberia, providing for commercial cooperation on flights between North America
and most countries in Europe, pooling and sharing of certain revenues and costs, expanded
codesharing, enhanced frequent flyer program reciprocity, and cooperation in other areas. Along
with these carriers and certain other carriers, we have applied to the U.S. Department of
Transportation for antitrust immunity for this planned cooperation. Implementation of this
agreement and the related arrangements is subject to conditions, including various U.S. and foreign
regulatory approvals, successful negotiation of certain detailed financial and commercial
arrangements, and other approvals. Agencies from which such approvals must be obtained may impose
requirements or limitations as a condition of granting any such approvals, such as requiring
divestiture of routes, gates, slots or other assets. No assurances can be given as to any
arrangements that may ultimately be implemented or any benefits that we may derive from such
arrangements.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We compete with reorganized carriers, which results in competitive disadvantages for
us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We must compete with air carriers that have reorganized under the protection of Chapter&nbsp;11 of
the Bankruptcy Code in recent years, including United, Delta, Northwest and U.S. Airways. It is
possible that other significant competitors may seek to reorganize in or out of Chapter&nbsp;11.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successful reorganizations by other carriers present us with competitors with significantly
lower operating costs and stronger financial positions derived from renegotiated labor, supply, and
financing contracts. These competitive pressures may limit our ability to adequately price our
services, may require us to further reduce our operating costs, and could have a material adverse
impact on us.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Fares are at low levels and our reduced pricing power adversely affects our ability to
achieve adequate pricing, especially with respect to business travel.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our passenger yield remains very low by historical standards. We believe that this is due in
large part to a corresponding decline in our pricing power. Our reduced pricing power is the
product of several factors including: greater cost sensitivity on the part of travelers
(particularly business travelers); pricing transparency resulting from the use of the Internet;
greater competition from low-cost carriers and from carriers that have recently reorganized under
the protection of Chapter&nbsp;11; other carriers being well hedged against rising fuel costs and able
to better absorb high jet fuel prices; and fare simplification efforts by certain carriers. We
believe that our reduced pricing power could persist indefinitely.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our corporate or business strategy may change.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In light of the rapid changes in the airline industry, we evaluate our assets on an ongoing
basis with a view to maximizing their value to us and determining which are core to our operations.
We also regularly evaluate our corporate and business strategies, and they are influenced by
factors beyond our control, including changes in the competitive landscape we face. Our corporate
and business strategies are, therefore, subject to change.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning in late 2007 and continuing into 2008, AMR, American&#146;s parent company, conducted a
strategic value review involving, among other things, AMR Eagle, American Beacon Advisors, Inc.,
AMR&#146;s investment advisory subsidiary (&#147;<I>American Beacon Advisors</I>&#148;) and AAdvantage, our frequent
flyer program. The purpose of the review was to determine whether there existed the potential for
unlocking additional stockholder value with respect to one or more of these strategic assets
through some type of separation transaction. As a result of this review, AMR announced in late
2007 that it planned to divest AMR Eagle; however, in mid-2008 AMR announced that, given the
then-current industry environment, AMR had decided to place that planned divestiture on hold until
industry conditions are more favorable and stable. Also pursuant to the review, AMR sold American
Beacon Advisors to a third party in September&nbsp;2008 (AMR maintained a minority equity stake).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the future, AMR may consider and engage in discussions with third parties regarding the
divestiture of AMR Eagle and other separation transactions, and may decide to proceed with one or
more such transactions. There can be no assurance that AMR will complete any separation
transactions or that any announced plans or transactions will be consummated, and no prediction can
be made as to the impact of any such transactions on stockholder value or on us.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our business is subject to extensive government regulation, which can result in
increases in our costs, disruptions to our operations, limits on our operating flexibility,
reductions in the demand for air travel, and competitive disadvantages.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Airlines are subject to extensive domestic and international regulatory requirements. Many of
these requirements result in significant costs. For example, the FAA from time to time issues
directives and other regulations relating to the maintenance and operation of aircraft. Compliance
with those requirements drives significant expenditures and has in the past, and may in the future,
cause disruptions to our operations. In addition, the ability of U.S. carriers to operate
international routes is subject to change because the applicable arrangements between the United
States and foreign governments may be amended from time to time, or because appropriate slots or
facilities are not made available.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moreover, additional laws, regulations, taxes and airport rates and charges have been enacted
from time to time that have significantly increased the costs of airline operations, reduced the
demand for air travel or restricted the way we can conduct our business. For example, the Aviation
and Transportation Security Act, which became law in 2001, mandated the federalization of
certain
airport security procedures and resulted in the imposition of
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">additional security requirements on
airlines. In addition, many aspects of our operations are subject to increasingly stringent
environmental regulations, and concerns about climate change, in particular, may result in the
imposition of additional regulation. For example, the U.S. Congress is considering climate change
legislation, and the European Union (the &#147;<I>EU</I>&#148;) has approved a proposal that will put a cap on
carbon dioxide emissions for all flights into and out of the EU effective in 2012. Laws or
regulations similar to those described above or other U.S. or foreign governmental actions in the
future may adversely affect our business and financial results.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of our operations, demand for air travel, and the manner in which we conduct our
business each may be affected by changes in law and future actions taken by governmental agencies,
including:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>changes in law which affect the services that can be offered by airlines in
particular markets and at particular airports;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the granting and timing of certain governmental approvals (including foreign
government approvals) needed for codesharing alliances and other arrangements with
other airlines;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restrictions on competitive practices (for example court orders, or agency
regulations or orders, that would curtail an airline&#146;s ability to respond to a
competitor);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the adoption of regulations that impact customer service standards (for example new
passenger security standards, passenger bill of rights);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>restrictions on airport operations, such as restrictions on the use of takeoff and
landing slots at airports or the auction of slot rights currently or previously held by
us; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the adoption of more restrictive locally imposed noise restrictions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the air traffic control (&#147;<I>ATC</I>&#148;) system, which is operated by the FAA, is not
successfully managing the growing demand for U.S. air travel. U.S. airlines carry about 740
million passengers a year and are forecasted to accommodate a billion passengers annually by 2015.
Air-traffic controllers rely on outdated technologies that routinely overwhelm the system and
compel airlines to fly inefficient, indirect routes. We support a common-sense approach to ATC
modernization that would allocate cost to all ATC system users in proportion to the services they
consume. The reauthorization by the U.S. Congress of legislation that funds the FAA, which
includes proposals regarding upgrades to the ATC system, is pending, but it is uncertain when any
such legislation will be enacted.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We could be adversely affected by conflicts overseas or terrorist attacks.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual or threatened U.S. military involvement in overseas operations has, on occasion, had an
adverse impact on our business, financial position (including access to capital markets) and
results of operations, and on the airline industry in general. The continuing conflicts in Iraq
and Afghanistan, or other conflicts or events in the Middle East or elsewhere, may result in
similar adverse impacts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Terrorist Attacks had a material adverse impact on us. The occurrence of another
terrorist attack (whether domestic or international and whether against us or another entity) could
again have a material adverse impact on us.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our international operations could be adversely affected by numerous events,
circumstances or government actions beyond our control.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our current international activities and prospects could be adversely affected by factors such
as reversals or delays in the opening of foreign markets, exchange controls, currency and political
risks, environmental regulation, taxation and changes in international government regulation of our
operations, including the inability to obtain or retain needed route authorities and/or slots.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For example, the &#147;open skies&#148; air services agreement between the United States and the EU
which took effect in March&nbsp;2008 provides airlines from the United States and EU member states open
access to each other&#146;s markets, with freedom of pricing and unlimited rights to fly beyond the
United States and any airport in the EU including London&#146;s Heathrow Airport. The agreement has
resulted in American facing increased competition in these markets, including Heathrow, where we
have lost market share.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We could be adversely affected by an outbreak of a disease that affects travel
behavior.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the second quarter of 2009, there was an outbreak of the H1N1 virus which had an adverse
impact throughout our network but primarily on our operations to and from Mexico. In 2003, there
was an outbreak of Severe Acute Respiratory Syndrome (&#147;<I>SARS</I>&#148;), which had an adverse impact
primarily on our Asia operations. In addition, in the past there have been concerns about
outbreaks or potential outbreaks of other diseases, such as avian flu. Any outbreak of a disease
(including a worsening of the outbreak of the H1N1 virus) that affects travel behavior could have a
material adverse impact on us. In addition, outbreaks of disease could result in quarantines of
our personnel or an inability to access facilities or our aircraft, which could adversely affect
our operations.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our labor costs are higher than those of our competitors.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wages, salaries and benefits constitute a significant percentage of our total operating
expenses. In 2008, they constituted approximately 23&nbsp;percent of our total operating expenses. All
of the major hub-and-spoke carriers with whom American competes have achieved significant labor
cost savings through or outside of bankruptcy proceedings. We believe American&#146;s labor costs are
higher than those of its primary competitors, and it is unclear how long this labor cost
disadvantage may persist.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We could be adversely affected if we are unable to have satisfactory relations with any
unionized or other employee work group.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our operations could be adversely affected if we fail to have satisfactory relations with any
labor union representing our employees. In addition, any significant dispute we have with, or any
disruption by, an employee work group could adversely impact us. Moreover, one of the fundamental
tenets of our strategic Turnaround Plan is increased union and employee involvement in our
operations. To the extent that we are unable to have satisfactory relations with any unionized or
other employee work group, our ability to execute our strategic plans could be adversely affected.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American is currently in mediated negotiations with each of its three major unions regarding
amendments to their respective labor agreements. The negotiations process in the airline industry
typically is slow and sometimes contentious. The union that represents American&#146;s pilots has
recently filed a number of grievances, lawsuits and complaints, most of which American believes are
part of a corporate campaign related to the union&#146;s labor agreement negotiations with American.
While American is vigorously defending these claims, unfavorable outcomes of one or more of them
could require American to incur additional costs, change the way it conducts some parts of its
business, or otherwise adversely affect us.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Our insurance costs have increased substantially and further increases in insurance
costs or reductions in coverage could have an adverse impact on us.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We carry insurance for public liability, passenger liability, property damage and all-risk
coverage for damage to our aircraft. As a result of the Terrorist Attacks, aviation insurers
significantly reduced the amount of insurance coverage available to commercial air carriers for
liability to persons other than employees or passengers for claims resulting from acts of
terrorism, war or similar events (war-risk coverage). At the same time, these insurers
significantly increased the premiums for aviation insurance in general.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The U.S. government has agreed to provide commercial war-risk insurance for U.S. based
airlines through August&nbsp;31, 2010, covering losses to employees, passengers, third parties and
aircraft. If the U.S. government does not provide such insurance at any time beyond that date, or
reduces the coverage provided by such insurance, we
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">will attempt to purchase similar coverage with
narrower scope from commercial insurers at an additional cost. To the extent this coverage is not
available at commercially reasonable rates, we would be adversely affected.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the price of commercial insurance had declined since the period immediately after the
Terrorist Attacks, in the event commercial insurance carriers further reduce the amount of
insurance coverage available to us, or significantly increase its cost, we would be adversely
affected.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We may be unable to retain key management personnel.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Terrorist Attacks, a number of our key management employees have elected to retire
early or leave for more financially favorable opportunities at other companies, both within and
outside of the airline industry. There can be no assurance that we will be able to retain our key
management employees. Any inability to retain our key management employees, or attract and retain
additional qualified management employees, could have a negative impact on us.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We could be adversely affected by a failure or disruption of our computer,
communications or other technology systems.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are heavily and increasingly dependent on technology to operate our business. The computer
and communications systems on which we rely could be disrupted due to various events, some of which
are beyond our control, including natural disasters, power failures, terrorist attacks, equipment
failures, software failures and computer viruses and hackers. We have taken certain steps to help
reduce the risk of some (but not all) of these potential disruptions. There can be no assurance,
however, that the measures we have taken are adequate to prevent or remedy disruptions or failures
of these systems. Any substantial or repeated failure of these systems could impact our operations
and customer service, result in the loss of important data, loss of revenues, and increased costs,
and generally harm our business. Moreover, a failure of certain of our vital systems could limit
our ability to operate our flights for an extended period of time, which would have a material
adverse impact on our operations and our business.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>We are at risk of losses and adverse publicity which might result from an accident
involving any of our aircraft.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If one of our aircraft were to be involved in an accident, we could be exposed to significant
tort liability. The insurance we carry to cover damages arising from any future accidents may be
inadequate. In the event that our insurance is not adequate, we may be forced to bear substantial
losses from an accident. In addition, any accident involving an aircraft operated by us could
adversely affect the public&#146;s perception of us.
</DIV>

<DIV align="left">
<A name="113"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Risk Factors Relating to the Notes and the Exchange Offer</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Noteholders may not be able to resell the Notes easily or at a favorable price.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New Notes are a new issue of securities with no established trading market. We do not
intend to apply for listing of the Notes on any securities exchange or otherwise. The Initial
Purchasers are not obligated to make a market in the Notes, and any such market-making may be
discontinued at any time, at the sole discretion of the Initial Purchasers. In addition, such
market-making activities may be limited by the Securities Act and the Exchange Act during the
pendency of the exchange offer or the effectiveness of a shelf registration in lieu thereof.
Accordingly, no assurance can be given as to the liquidity of, or trading markets for, the New
Notes or in the case of non-exchanging holders of Old Notes, the trading market for the Old Notes
following the exchange offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The liquidity of, and trading market for, the Old Notes or the New Notes also may be adversely
affected by general declines in the markets or by declines in the market for similar securities.
Such declines may adversely affect such liquidity and trading markets independent of our financial
performance and prospects.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>You may have difficulty selling the Old Notes that you do not exchange.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you do not exchange your Old Notes for New Notes in the exchange offer, your Old Notes will
continue to be subject to significant restrictions on transfer. Those transfer restrictions are
described in the Indenture and arose because we originally issued the Old Notes under exemptions
from the registration requirements of the Securities Act. The Old Notes may not be offered, sold or
otherwise transferred, except in compliance with the registration requirements of the Securities
Act, pursuant to an exemption from registration under the Securities Act or in a transaction not
subject to the registration requirements of the Securities Act, and in compliance with applicable
state securities laws. We did not register the Old Notes under the Securities Act, and we do not
intend to do so. If you do not exchange your Old Notes, your ability to sell the Old Notes may be
significantly limited. If a large number of outstanding Old Notes are exchanged for New Notes
issued in the exchange offer, it may be more difficult for you to sell your unexchanged Old Notes
due to the limited amounts of Old Notes that would remain outstanding following the exchange offer.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Holders of Old Notes who do not tender their Old Notes will have no further
registration rights.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of Old Notes who do not tender their Old Notes will not have any further registration
rights under the Registration Rights Agreement or otherwise and will no longer have the right to
receive additional interest under the Registration Rights Agreement unless we fail to obtain
ratings for the Notes as described under &#147;Exchange Offer; Registration Rights; Ratings.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Your Old Notes may not be accepted for exchange if you fail to follow the exchange
offer procedures, and, as a result, your Old Notes could continue to be subject to existing
transfer restrictions.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are not required to accept your Old Notes for exchange if you do not follow the exchange
offer procedures. We will issue New Notes as part of the exchange offer only after a timely receipt
of your Old Notes, a properly completed and duly executed letter of transmittal or Agent&#146;s Message
and all other required documents, or waiver of any such requirements, in accordance with the
procedures described under &#147;The Exchange Offer.&#148; If we do not receive your Old Notes, confirmation
of a book-entry transfer of your Old Notes, letter of transmittal or Agent&#146;s Message and other
required documents by the Expiration Date, we may not accept your Old Notes for exchange. We are
under no duty to notify you of defects or irregularities with respect to your tender of Old Notes
for exchange. If there are defects or irregularities with respect to your tender of Old Notes, we
may not accept your Old Notes for exchange. See &#147;The Exchange Offer.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Appraisals should not be relied upon as a measure of realizable value of the Aircraft.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three independent appraisal and consulting firms have prepared appraisals of the Aircraft.
The appraisal letters provided by these firms are annexed to this prospectus as Appendix&nbsp;II. Such
appraisals of the Aircraft are subject to a number of significant assumptions and methodologies
(which differ among the appraisers) and were prepared without a physical inspection of the
Aircraft. The appraisals may not accurately reflect the current market value of the Aircraft.
Appraisals that are based on other assumptions and methodologies (or a physical inspection of the
Aircraft) may result in valuations that are materially different from those contained in such
appraisals. See &#147;Description of the Aircraft and the Appraisals &#151; The Appraisals.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An appraisal is only an estimate of value. It does not necessarily indicate the price at
which an aircraft may be purchased or sold in the market. In particular, the appraisals of the
Aircraft are estimates of the values of the Aircraft assuming the Aircraft are in a certain
condition, which may not be the case when the Aircraft are subjected to the lien of the Aircraft
Security Agreement after the 1999-1 Maturity Date and on or prior to the Cut-Off Date. An
appraisal should not be relied upon as a measure of realizable value. The proceeds realized upon
the exercise of remedies with respect to any Aircraft, including a sale of such Aircraft, may be
less than its appraised value. The value of an Aircraft if remedies are exercised under the
Aircraft Security Agreement will depend on various factors, including market, economic and airline
industry conditions; the supply of similar aircraft; the availability of buyers; the condition of
such Aircraft; the time period in which such Aircraft is sought to be sold; and whether such
Aircraft is sold separately or as part of a block.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Terrorist Attacks, the airline industry has suffered substantial losses. In
response to adverse market conditions, we and many other U.S. air carriers have reduced the number
of aircraft in operation, and there may be further reductions, particularly by air carriers in
bankruptcy or liquidation. Any such reduction of aircraft of the same models as the Aircraft could
adversely affect the value of the Aircraft.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, we cannot assure you that the proceeds realized upon any exercise of remedies
with respect to the Aircraft would be sufficient to satisfy in full payments due on the Notes.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>If we fail to perform maintenance responsibilities, the value of the Aircraft may
deteriorate.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent described in the Aircraft Security Agreement, we will be responsible for the
maintenance, service, repair and overhaul of the Aircraft. If we fail to perform these
responsibilities adequately, the value of the Aircraft may be reduced. In addition, the value of
the Aircraft may deteriorate even if we fulfill our maintenance responsibilities. As a result, it
is possible that upon a liquidation, there will be less proceeds than anticipated to repay
Noteholders. See &#147;Description of the Notes &#151; Certain Provisions of the Aircraft Security Agreement
&#151; Maintenance and Operation.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Inadequate levels of insurance may result in insufficient proceeds to repay
Noteholders.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent described in the Aircraft Security Agreement, we must maintain all-risk aircraft
hull insurance on the Aircraft. If we fail to maintain adequate levels of insurance, the proceeds
which could be obtained upon an Event of Loss of an Aircraft may be insufficient to repay the
Allocable Portion of the Notes with respect to such Aircraft. See &#147;Description of the Notes &#151;
Certain Provisions of the Aircraft Security Agreement &#151; Insurance.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Repossession of Aircraft may be difficult, time-consuming and expensive.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There will be no general geographic restrictions on our ability to operate the Aircraft.
Although we do not currently intend to do so, we are permitted to register the Aircraft in certain
foreign jurisdictions and to lease the Aircraft, and to enter into interchange or pooling
arrangements with respect to the Aircraft, with unrelated third parties. It may be difficult,
time-consuming and expensive for the Security Agent to exercise its repossession rights,
particularly if an Aircraft is located outside the United States, is registered in a foreign
jurisdiction or is leased to or in the possession of a foreign or domestic operator. Additional
difficulties may exist if such a lessee or other operator is the subject of a bankruptcy,
insolvency or similar event. See &#147;Description of the Notes &#151; Certain Provisions of the Aircraft
Security Agreement &#151; Registration, Leasing and Possession.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, some jurisdictions may allow for other liens or other third party rights to have
priority over the Security Agent&#146;s security interest in an Aircraft. As a result, the benefits of
the Security Agent&#146;s security interest in an Aircraft may be less than they would be if the
Aircraft were located or registered in the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon repossession of an Aircraft, the Aircraft may need to be stored and insured. The costs
of storage and insurance can be significant and the incurrence of such costs could reduce the
proceeds available to repay the Noteholders. In addition, at the time of foreclosing on the lien
on the Aircraft under the Aircraft Security Agreement, an Airframe subject to the lien of the
Aircraft Security Agreement might not be equipped with the Engines associated with that Airframe.
If American fails to obtain title to engines not owned by American that are attached to repossessed
Aircraft, it could be difficult, expensive and time-consuming to assemble an Aircraft consisting of
an Airframe and the associated Engines subject to the lien of the Aircraft Security Agreement.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>The proceeds from the disposition of any Aircraft may not be sufficient to pay all
amounts distributable to the Noteholders.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the continuation of any Event of Default under the Indenture, the Aircraft may be sold
in the exercise of remedies. The market for Aircraft during the continuation of any Event of
Default may be very limited, and there can be no assurance as to whether they could be sold or the
price at which they could be sold.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>As a Noteholder, you will have no protection against our entry into extraordinary
transactions, including acquisitions and other business combinations, and there are no
financial or other covenants in the Notes or the underlying agreements that impose
restrictions on our financial and business operations or our ability to execute any such
transaction.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes and the other Operative Documents will not contain any financial or other covenants
or &#147;event risk&#148; provisions protecting the Noteholders in the event of a highly leveraged or other
extraordinary transaction, including an acquisition or other business combination, affecting
American or its affiliates. We do from time to time analyze opportunities presented by various
types of transactions, and we may conduct our business in a manner that could cause the market
price or liquidity of the Notes to decline, could have a material adverse effect on our financial
condition or otherwise could restrict or impair our ability to pay amounts due under the Notes
and/or the related agreements, including by entering into a highly leveraged or other extraordinary
transaction.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Fewer than all of the Aircraft may be subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under certain circumstances, fewer than all of the Aircraft may be subjected to the lien of
the Aircraft Security Agreement on or prior to the Cut-Off Date. This could occur because an
Aircraft suffers a 1999-1 Event of Loss (or an event that would constitute a 1999-1 Event of Loss
but for the requirement that notice be given or time elapse or both) or for other reasons. See
&#147;Description of the Notes &#151; Collateral &#151; Release of Cash Collateral.&#148; If fewer than all of the
Aircraft have been subjected to the lien of the Aircraft Security Agreement on or prior to the
Cut-Off Date, on the Cut-Off Redemption Date, we will be obligated to redeem the Allocable Portion
of the Notes attributable to each Aircraft that has not been subjected to the lien of the Aircraft
Security Agreement. The redemption price will be the Allocable Portion of the Notes attributable
to each such Aircraft, together with accrued and unpaid interest on such Allocable Portion, and the
Make-Whole Amount (if any) with respect to such Allocable Portion. Notwithstanding the foregoing,
no Make-Whole Amount will be payable in the case of a redemption because of the occurrence of a
1999-1 Event of Loss with respect to such Aircraft (or an event that would constitute a 1999-1
Event of Loss but for the requirement that notice be given or time elapse or both). Upon any such
partial redemption with respect to an Aircraft, the amount of the Cash Collateral equal to the
Allocable Portion of the Notes attributable to such Aircraft will be released to us so long as no
Event of Default shall have occurred and be continuing, and our obligation thereafter to make the
scheduled interest and principal payments with respect to such Allocable Portion of the Notes will
cease.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Payments on the Notes and the ability to exercise remedies with respect to certain
collateral may be restricted in the case of a bankruptcy of American.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1110, which provides certain special rights to secured parties with a security
interest in aircraft equipment such as the Aircraft (see &#147;Description of the Notes &#151; Remedies&#148;),
would not apply to the Cash Collateral deposited with the Trustee on initial issuance of the Old
Notes or any cash collateral held by the Security Agent. If we become the subject of a case under
the Bankruptcy Code, the ability of the Noteholders to enforce their security interest in the Cash
Collateral or such other cash collateral would be subject to the automatic stay under Section&nbsp;362
of the Bankruptcy Code. Any resulting delay in the enforcement of the security interest could be
for a substantial period of time. Moreover, the Bankruptcy Code permits a debtor, with the
approval of the bankruptcy court, to use cash collateral even though the debtor is in default under
the applicable debt instrument, provided that the secured creditor is given &#147;adequate protection.&#148;
What constitutes &#147;adequate protection&#148; varies under the circumstances, and it is not possible to
predict in advance what a bankruptcy court might judge to be &#147;adequate protection&#148; in a particular
instance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the substitution of the Aircraft for the Cash Collateral could be subject to
partial avoidance as a &#147;preference&#148; under Section&nbsp;547 of the Bankruptcy Code if (1)&nbsp;it occurred
within 90&nbsp;days before a bankruptcy filing by us (or one year in the case of Notes held by an
&#147;insider&#148; of American within the meaning of the U.S. Bankruptcy Code) and (2)&nbsp;it enabled the
Noteholders to receive more than they would receive if we were liquidated under Chapter&nbsp;7 of the
Bankruptcy Code and the substitution had not occurred which would likely be the case.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>The Notes are not currently rated, and any rating of the Notes, if obtained, may be
lowered or withdrawn in the future.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes are not currently rated by any rating agency. While American has agreed to use its
reasonable best efforts to obtain ratings of the Notes from both Moody&#146;s Investors Service, Inc.
(&#147;<I>Moody&#146;s</I>&#148;) and Standard &#038; Poor&#146;s Ratings Services, a Standard &#038; Poor&#146;s Financial Services LLC
business (&#147;<I>Standard &#038; Poor&#146;s</I>&#148; and together with Moody&#146;s, the &#147;<I>Rating Agencies</I>&#148;) on or before
December&nbsp;31, 2009, there can be no assurance that either Rating Agency will provide a rating on the
Notes. In addition, there is no requirement that the Notes be rated at or above a certain rating
category. Any rating that may be obtained will not be a recommendation to purchase, hold or sell
the Notes, because such rating would not address market price or suitability for a particular
investor. A rating may change during any given period of time and may be lowered or withdrawn
entirely by a Rating Agency if in its judgment circumstances in the future (including the
downgrading of American) so warrant. Moreover, any change in a Rating Agency&#146;s assessment of the
risks of aircraft-backed debt (and similar securities such as the Notes) could adversely affect any
rating issued by such Rating Agency with respect to the Notes. The failure of American to obtain
ratings of the Notes will result in an adjustment to the interest rate for the Notes (see &#147;Exchange
Offer; Registration Rights; Ratings&#148;). Such failure or the reduction, suspension or withdrawal of
any ratings of the Notes will not, by itself, constitute an Event of Default.
</DIV>


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<DIV align="left">
<A name="114"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE EXCHANGE OFFER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Registration Rights Agreement, we agreed to prepare and file with the SEC a
registration statement on an appropriate form under the Securities Act with respect to a proposed
offer to the holders of the Old Notes to issue and deliver to such holders of Old Notes, in
exchange for their Old Notes, a like aggregate principal amount of New Notes that are identical in
all material respects to the Old Notes, except for provisions relating to registration rights and
the transfer restrictions relating to the Old Notes, and except for certain related differences
described below. See &#147;Exchange Offer; Registration Rights; Ratings.&#148;
</DIV>

<DIV align="left">
<A name="115"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Terms of the Exchange Offer; Period for Tendering Old Notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus and the accompanying letter of transmittal contain the terms and conditions of
the exchange offer. Upon the terms and subject to the conditions included in this prospectus and in
the accompanying letter of transmittal, which together constitute the exchange offer, we will
accept for exchange Old Notes which are properly tendered on or prior to the Expiration Date,
unless you have previously withdrawn them.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When you tender Old Notes as provided below, our acceptance of the Old Notes will constitute a
binding agreement between you and American upon the terms and subject to the conditions in this
prospectus and in the accompanying letter of transmittal. In tendering Old Notes, you should also
note the following important information:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>You may only tender Old Notes in minimum denominations of $2,000 and any integral
multiple of $1,000 in excess thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will keep the exchange offer open for not less than 20 business days, or longer
if required by applicable law, after the date on which notice of the exchange offer is
mailed to holders of the Old Notes. We are sending this prospectus, together with the
letter of transmittal, on or about the date of this prospectus, to all of the
registered holders of Old Notes at their addresses listed in the Trustee&#146;s security
register with respect to the Old Notes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The exchange offer expires at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, New York City time, on
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2009; provided, however, that we, in our sole discretion, may extend the period of
time for which the exchange offer is open.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As of the date of this prospectus, $276,400,000 aggregate principal amount of Old
Notes was outstanding. The exchange offer is not conditioned upon any minimum principal
amount of Old Notes being tendered.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our obligation to accept Old Notes for exchange in the exchange offer is subject to
the conditions described under &#147;&#151;Conditions to the Exchange Offer.&#148;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We expressly reserve the right, at any time, to extend the period of time during
which the exchange offer is open, and thereby delay acceptance of any Old Notes, by
giving oral or written notice of an extension to the Exchange Agent and notice of that
extension to the Noteholders as described below. During any extension, all Old Notes
previously tendered will remain subject to the exchange offer unless withdrawal rights
are exercised as described under &#147;&#151;Withdrawal Rights.&#148; Any Old Notes not accepted for
exchange for any reason will be returned without expense to the tendering Noteholder as
promptly as practicable after the expiration or termination of the exchange offer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We expressly reserve the right to amend or terminate the exchange offer, and not to
accept for exchange any Old Notes that we have not yet accepted for exchange, at any
time prior to the Expiration Date.</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We will give oral or written notice of any extension, amendment, termination or
non-acceptance described above to holders of the Old Notes as promptly as practicable.
If we extend the Expiration Date, we will give notice by means of a press release or
other public announcement no later than 9:00 a.m., New York City time, on the business
day after the previously scheduled Expiration Date. Without limiting the manner in
which we may choose to make any public announcement and subject to applicable law, we
will have no obligation to publish, advertise or otherwise communicate any public
announcement other than by issuing a release to an appropriate news agency. Such
announcement may state that we are extending the exchange offer for a specified period
of time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Holders of Old Notes do not have any appraisal or dissenters&#146; rights in connection
with the exchange offer.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Old Notes which are not tendered for exchange, or are tendered but not accepted, in
connection with the exchange offer will remain outstanding and be entitled to the
benefits of the Indenture, but will not be entitled to any further registration rights
under the Registration Rights Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We intend to conduct the exchange offer in accordance with the applicable
requirements of the Exchange Act and the rules and regulations of the SEC thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By executing, or otherwise becoming bound by, the letter of transmittal, you will be
making to us the representations described under &#147;&#151;Resale of the New Notes.&#148;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>Important rules concerning the exchange offer</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should note the following important rules concerning the exchange offer:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All questions as to the validity, form, eligibility, time of receipt and acceptance
of Old Notes tendered for exchange will be determined by us in our sole discretion,
which determination shall be final and binding.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We reserve the absolute right to reject any and all tenders of any particular Old
Notes not properly tendered or to not accept any particular Old Notes if such
acceptance might, in our judgment or the judgment of our counsel, be unlawful.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>We also reserve the absolute right to waive any defects or irregularities or
conditions of the exchange offer as to any particular Old Notes either before or after
the Expiration Date, including the right to waive the ineligibility of any holder who
seeks to tender Old Notes in the exchange offer. Unless we agree to waive any defect or
irregularity in connection with the tender of Old Notes for exchange, you must cure any
defect or irregularity within any reasonable period of time as we shall determine.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Our interpretation of the terms and conditions of the exchange offer as to any
particular Old Notes either before or after the Expiration Date shall be final and
binding on all parties. Neither American, the Exchange Agent nor any other person shall
be under any duty to notify you of any defect or irregularity with respect to any
tender of Old Notes for exchange, nor shall any of them incur any liability for failing
to so notify you.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="116"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Procedures for Tendering Old Notes</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><B><I>What to submit and how</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you, as a holder of any Old Notes, wish to tender your Old Notes for exchange in the
exchange offer, you must, except as described under &#147;&#151;Guaranteed Delivery Procedures,&#148; transmit the
following on or prior to the Expiration Date to the Exchange Agent:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if Old Notes are tendered in accordance with the book-entry procedures
described under &#147;&#151;Book-Entry Transfer,&#148; an Agent&#146;s Message, as defined below,
transmitted through DTC&#146;s ATOP, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a properly completed and duly executed letter of transmittal, or a facsimile
copy thereof, to the Exchange Agent at the address set forth below under &#147;&#151;Exchange
Agent,&#148; including all other documents required by the letter of transmittal.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition,
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a timely confirmation of a book-entry transfer of Old Notes into the Exchange
Agent&#146;s account at DTC using the procedure for book-entry transfer described under
&#147;&#151;Book-Entry Transfer&#148; (a &#147;<I>Book-Entry Confirmation</I>&#148;), along with an Agent&#146;s Message,
must be actually received by the Exchange Agent prior to the Expiration Date, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certificates for Old Notes must be actually received by the Exchange Agent
along with the letter of transmittal on or prior to the Expiration Date, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>you must comply with the guaranteed delivery procedures described below.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term &#147;<I>Agent&#146;s Message</I>&#148; means a message, transmitted through ATOP by DTC to, and received
by, the Exchange Agent and forming a part of a Book-Entry Confirmation, that states that DTC has
received an express acknowledgement that the tendering holder has received and agrees to be bound
by the letter of transmittal or, in the case of an Agent&#146;s Message relating to guaranteed delivery,
that such holder has received and further agrees to be bound by the notice of guaranteed delivery,
and that we may enforce the letter of transmittal, and the notice of guaranteed delivery, as the
case may be, against such holder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The method of delivery of Old Notes, letters of transmittal, notices of guaranteed delivery
and all other required documentation, including delivery of Old Notes through DTC and transmission
of Agent&#146;s Messages through DTC&#146;s ATOP, is at your election and risk. Delivery will be deemed made
only when all required documentation is actually received by the Exchange Agent. Delivery of
documents or instructions to DTC does not constitute delivery to the Exchange Agent. If delivery is
by mail, we recommend that registered mail, properly insured, with return receipt requested, be
used. In all cases, sufficient time should be allowed to assure timely delivery to the Exchange
Agent. Holders tendering Old Notes or transmitting Agent&#146;s Messages through DTC&#146;s ATOP must allow
sufficient time for completion of ATOP procedures during DTC&#146;s normal business hours. No Old Notes,
Agent&#146;s Messages, letters of transmittal, notices of guaranteed delivery or any other required
documentation should be sent to American.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>How to sign your letter of transmittal and other documents</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signatures on a letter of transmittal or a notice of withdrawal, as the case may be, must be
guaranteed unless the Old Notes being surrendered for exchange are tendered:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;by a registered holder of the Old Notes who has not completed the box entitled &#147;Special
Issuance Instructions&#148; or &#147;Special Delivery Instructions&#148; on the letter of transmittal, or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;for the account of an &#147;eligible guarantor&#148; institution within the meaning of Rule&nbsp;17Ad-15
under the Exchange Act, or a commercial bank or trust company having an office or correspondent in
the United States that is a member in good standing of a medallion program recognized by the
Securities Transfer Association Inc., including the Securities Transfer Agents Medallion Program
(&#147;<I>STAMP</I>&#148;), the Stock Exchanges Medallion Program (&#147;<I>SEMP</I>&#148;) and the New York Stock Exchange Medallion
Signature Program (&#147;<I>MSP</I>&#148;) (each, an &#147;<I>Eligible Institution</I>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If signatures on a letter of transmittal or a notice of withdrawal, as the case may be, are
required to be guaranteed, the guarantees must be by an Eligible Institution.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the letter of transmittal is signed by a person or persons other than the registered holder
or holders of Old Notes, the Old Notes must be endorsed or accompanied by appropriate powers of
attorney, in either case signed exactly as the name or names of the registered holder or holders
appear on the Old Notes and with the signatures guaranteed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the letter of transmittal or any Old Notes or powers of attorney are signed by trustees,
executors, administrators, guardians, attorneys-in-fact, officers or corporations or others acting
in a fiduciary or representative capacity, the person should so indicate when signing and, unless
waived by us, proper evidence satisfactory to us of such person&#146;s authority to so act must be
submitted.
</DIV>

<DIV align="left">
<A name="117"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Acceptance of Old Notes for Exchange; Delivery of New Notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once all of the conditions to the exchange offer are satisfied or waived, we will accept,
promptly after the Expiration Date, all Old Notes properly tendered and not properly withdrawn, and
will issue the New Notes of the same series promptly after such acceptance. See &#147;&#151;Conditions to the
Exchange Offer&#148; below. For purposes of the exchange offer, our giving of oral or written notice of
acceptance to the Exchange Agent will be considered our acceptance of the tendered Old Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In all cases, we will issue New Notes in exchange for Old Notes of the same series that are
accepted for exchange only after timely receipt by the Exchange Agent of:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a Book-Entry Confirmation or Old Notes in proper form for transfer,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a properly transmitted Agent&#146;s Message or a properly completed and duly executed
letter of transmittal, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all other required documentation.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we do not accept any tendered Old Notes for any reason included in the terms and conditions
of the exchange offer, if you submit certificates representing Old Notes in a greater principal
amount than you wish to exchange or if you properly withdraw tendered Old Notes in accordance with
the procedures described under
&#147;&#151;Withdrawal Rights,&#148; we will return any unaccepted, non-exchanged or properly withdrawn Old
Notes, as the case may be, without expense to the tendering holder. In the case of Old Notes
tendered by book-entry transfer into the Exchange Agent&#146;s account at DTC using the book-entry
transfer procedures described below, unaccepted, non-exchanged or properly withdrawn Old Notes will
be credited to an account maintained with DTC. We will return the Old Notes or have them credited
to the DTC account, as applicable, as promptly as practicable after the expiration or termination
of the exchange offer.
</DIV>

<DIV align="left">
<A name="118"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Book-Entry Transfer</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Exchange Agent will make a request to establish an account with respect to the Old Notes
at DTC for purposes of the exchange offer promptly after the date of this prospectus. Any financial
institution that is a participant in DTC&#146;s systems, including Euroclear Bank, S.A./N.V., as
operator of the Euroclear System (&#147;<I>Euroclear</I>&#148;), or Clearstream Banking, soci&#233;t&#233; anonyme
(&#147;<I>Clearstream</I>&#148;) may make book-entry delivery of Old Notes by causing DTC to transfer Old Notes into
the Exchange Agent&#146;s account at DTC in accordance with DTC&#146;s ATOP procedures for transfer. However,
the exchange for the Old Notes so tendered will only be made after timely confirmation of
book-entry transfer of Old Notes into the Exchange Agent&#146;s account, and timely receipt by the
Exchange Agent of an Agent&#146;s Message and all other documents required by the letter of transmittal.
Only participants in DTC may deliver Old Notes by book-entry transfer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although delivery of Old Notes may be effected through book-entry transfer into the Exchange
Agent&#146;s account at DTC, the letter of transmittal, or a facsimile copy thereof, properly completed
and duly executed, with any required signature guarantees, or an Agent&#146;s Message, with all other
required documentation, must in any case be transmitted to and received by the Exchange Agent at
its address listed under &#147;&#151;Exchange Agent&#148; on or prior to
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Expiration Date, or you must comply
with the guaranteed delivery procedures described below under &#147;&#151;Guaranteed Delivery Procedures.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If your Old Notes are held through DTC, you must complete the accompanying form called
&#147;Instructions to Registered Holder and/or Book-Entry Participant,&#148; which will instruct the DTC
participant through whom you hold your Old Notes of your intention to tender your Old Notes or not
tender your Old Notes. Please note that delivery of documents or instructions to DTC does not
constitute delivery to the Exchange Agent and we will not be able to accept your tender of Old
Notes until the Exchange Agent actually receives from DTC the information and documentation
described under &#147;&#151;Acceptance of Old Notes for Exchange; Delivery of Old Notes.&#148;
</DIV>

<DIV align="left">
<A name="119"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Guaranteed Delivery Procedures</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are a registered holder of Old Notes and you want to tender your Old Notes but the
procedure for book-entry transfer cannot be completed prior to the Expiration Date, your Old Notes
are not immediately available or time will not permit your Old Notes to reach the Exchange Agent
before the Expiration Date, a tender may be effected if:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the tender is made through an Eligible Institution, as defined above,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prior to the Expiration Date, the Exchange Agent receives from such Eligible
Institution, by facsimile transmission, mail or hand delivery, a properly completed and
duly executed notice of guaranteed delivery, substantially in the form provided by us,
or an Agent&#146;s Message with respect to guaranteed delivery in lieu thereof, in either
case stating:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#151;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the name and address of the holder of Old Notes,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#151; &nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount of Old Notes tendered,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#151; &nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the tender is being made by delivering such notice and
guaranteeing that, within three New York Stock Exchange trading days after the
Expiration Date, a Book-Entry Confirmation or the certificates for all
physically tendered Old Notes, in proper form for transfer, together with
either an appropriate Agent&#146;s Message or a properly completed and duly executed
letter of transmittal in lieu therof, and all other required documentation,
will be deposited by that Eligible Institution with the Exchange Agent, and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a Book-Entry Confirmation or the certificates for all physically tendered Old Notes,
in proper form for transfer, together with either an appropriate Agent&#146;s Message or a
properly completed and duly executed letter of transmittal in lieu therof, and all
other required documentation, are received by the Exchange Agent within three New York
Stock Exchange trading days after the Expiration Date.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left">
<A name="120"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Withdrawal Rights</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can withdraw your tender of Old Notes at any time on or prior to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, New York
City time, on the Expiration Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a withdrawal to be effective, a written notice of withdrawal must be actually received by
the Exchange Agent prior to such time, properly transmitted either through DTC&#146;s ATOP or to the
Exchange Agent at the address listed below under &#147;&#151;Exchange Agent.&#148; Any notice of withdrawal must:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>specify the name of the person having tendered the Old Notes to be withdrawn;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>identify the Old Notes to be withdrawn;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>specify the principal amount of the Old Notes to be withdrawn;</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>contain a statement that the tendering holder is withdrawing its election to have
such Notes exchanged for New Notes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except in the case of a notice of withdrawal transmitted through DTC&#146;s ATOP system,
be signed by the holder in the same manner as the original signature on the letter of
transmittal by which the Old Notes were tendered, including any required signature
guarantees, or be accompanied by documents of transfer to have the trustee with respect
to the Old Notes register the transfer of the Old Notes in the name of the person
withdrawing the tender;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if certificates for Old Notes have been delivered to the Exchange Agent, specify the
name in which the Old Notes are registered, if different from that of the withdrawing
holder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if certificates for Old Notes have been delivered or otherwise identified to the
Exchange Agent, then, prior to the release of those certificates, specify the serial
numbers of the particular certificates to be withdrawn, and, except in the case of a
notice of withdrawal transmitted through DTC&#146;s ATOP system, include a notice of
withdrawal signed in the same manner as the letter of transmittal by which the Old
Notes were tendered, including any required signature guarantees; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if Old Notes have been tendered using the procedure for book-entry transfer
described above, specify the name and number of the account at DTC from which the Old
Notes were tendered and the name and number of the account at DTC to be credited with
the withdrawn Old Notes, and otherwise comply with the procedures of DTC.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Please note that all questions as to the validity, form, eligibility and time of receipt of
notices of withdrawal will be determined by us, and our determination shall be final and binding on
all parties. Any Old Notes so withdrawn will be considered not to have been validly tendered for
exchange for purposes of the exchange offer. New Notes will not be issued in exchange for such
withdrawn Old Notes unless the Old Notes so withdrawn are validly re-tendered.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have properly withdrawn Old Notes and wish to re-tender them, you may do so by
following one of the procedures described under &#147;&#151;Procedures for Tendering Old Notes&#148; above at any
time on or prior to the Expiration Date.
</DIV>

<DIV align="left">
<A name="121"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Conditions to the Exchange Offer</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provisions of the exchange offer, we will not be required to accept
for exchange, or to issue New Notes in exchange for, any Old Notes and may terminate or amend the
exchange offer, if we determine in our reasonable judgment at any time before the Expiration Date
that the exchange offer would violate applicable law or any applicable interpretation of the staff
of the SEC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing conditions are for our sole benefit and may be waived by us regardless of the
circumstances giving rise to that condition. Our failure at any time to exercise the foregoing
rights shall not be considered a waiver by us of that right. The rights described in the prior
paragraph are ongoing rights which we may assert at any time and from time to time.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, we will not accept for exchange any Old Notes tendered, and no New Notes will be
issued in exchange for any such Old Notes, if at any time any stop order is threatened or in effect
with respect to the registration statement of which this prospectus constitutes a part or the
qualification of the Indenture under the Trust Indenture Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We reserve the right to terminate or amend the exchange offer at any time prior to the
Expiration Date upon the occurrence of any of the foregoing events.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="122"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exchange Agent</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Bank National Association has been appointed as the Exchange Agent for the exchange
offer. All executed letters of transmittal, notices of guaranteed delivery, notices of withdrawal
and any other required documentation should be directed to the Exchange Agent at the address set
forth below. Questions and requests for assistance, requests for additional copies of this
prospectus or of the letter of transmittal and requests for notices of guaranteed delivery should
be directed to the Exchange Agent, addressed as follows:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Deliver To:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px"><I>By registered or certified mail, hand</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>By facsimile:</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>For information call:</I></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><I>delivery or overnight courier:</I></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(651) 495-8158
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(651) 495-3520</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">U.S. Bank Corporate Trust</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Attn: Lori Buckles &#151; Specialized</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">Finance</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">60 Livingston Avenue</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">2nd Floor</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">St. Paul, MN 55107</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delivery to an address other than the address of the Exchange Agent as listed above or
transmission of instructions via facsimile other than as listed above does not constitute a valid
delivery.
</DIV>

<DIV align="left">
<A name="123"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Fees and Expenses</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal solicitation is being made by mail; however, additional solicitation may be made
by telephone or in person by our officers, regular employees and affiliates. We will not pay any
additional compensation to any of our officers and employees who engage in soliciting tenders. We
will not make any payment to brokers, dealers or others soliciting acceptances of the exchange
offer. However, we will pay the Exchange Agent reasonable and customary fees for its services and
will reimburse it for its reasonable out-of-pocket expenses in connection with the exchange offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The estimated cash expenses to be incurred in connection with the exchange offer, including
legal, accounting, SEC filing, printing and Exchange Agent expenses, will be paid by us and are
estimated in the aggregate to be $305,000.
</DIV>

<DIV align="left">
<A name="124"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Transfer Taxes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders who tender their Old Notes for exchange will not be obligated to pay any transfer
taxes in connection therewith, except that holders who instruct us to register New Notes in the
name of, or request that Old Notes not tendered or not accepted in the exchange offer be returned
to, a person other than the registered tendering holder will be responsible for the payment of any
applicable transfer tax.
</DIV>

<DIV align="left">
<A name="125"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Resale of the New Notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under existing interpretations of the staff of the SEC contained in several no-action letters
to third parties, the New Notes would in general be freely transferable by holders thereof (other
than affiliates of us) after the exchange offer without further registration under the Securities
Act (subject to certain representations required to be made by each holder of Old Notes
participating in the exchange offer, as set forth below). The relevant no-action letters include
the Exxon Capital Holdings Corporation letter, which was made available by the SEC on May&nbsp;13, 1988,
the Morgan Stanley &#038; Co. Incorporated letter, which was made available by the SEC on June&nbsp;5, 1991,
the K-111 Communications Corporation letter, which was made available by the SEC on May&nbsp;14, 1993,
and the Shearman &#038; Sterling letter, which was made available by the SEC on July&nbsp;2, 1993.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->33<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However, any purchaser of Old Notes who is an &#147;affiliate&#148; of ours or who intends to
participate in the exchange offer for the purpose of distributing the New Notes:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not be able to rely on such SEC interpretation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not be able to tender its Old Notes in the exchange offer; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>must comply with the registration and prospectus delivery requirements of the
Securities Act in connection with any sale or transfer of Old Notes unless such sale or
transfer is made pursuant to an exemption from those requirements.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By executing, or otherwise becoming bound by, the letter of transmittal, each holder of the
Old Notes will represent that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any New Notes to be received by such holder will be acquired in the ordinary course
of its business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has no arrangements or understandings with any person to participate in the
distribution of the Notes within the meaning of the Securities Act; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is not an &#147;affiliate&#148; of us or, if it is such an affiliate, such holder will
comply with the registration and prospectus delivery requirements of the Securities Act
to the extent applicable.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not sought, and do not intend to seek, a no-action letter from the SEC with respect to
the effects of the exchange offer, and there can be no assurance that the SEC staff would make a
similar determination with respect to the New Notes as it has made in previous no-action letters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, in connection with any resales of those Old Notes, each exchanging dealer, as
defined below, receiving New Notes for its own account in exchange for Old Notes, where such Old
Notes were acquired by such exchanging dealer as a result of market-making activities or other
trading activities, must acknowledge that it will deliver a prospectus meeting the requirements of
the Securities Act in connection with any resale of such New Notes. See &#147;Plan of Distribution.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The SEC has taken the position in the Shearman &#038; Sterling no-action letter, which it made
available on July&nbsp;2, 1993, that exchanging dealers may fulfill their prospectus delivery
requirements with respect to the New Notes, other than a resale of an unsold allotment from the
original sale of the Old Notes, by delivery of the prospectus contained in the exchange offer
registration statement.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="126"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exchange offer is intended to satisfy our obligations under the Registration Rights
Agreements we entered into in connection with the private offering of the Old Notes. We will not
receive any cash proceeds from the issuance of the New Notes under the exchange offer. In
consideration for issuing the New Notes as contemplated by this prospectus, we will receive Old
Notes in like principal amounts, the terms of which are identical in all material respects to the
New Notes, subject to limited exceptions. Old Notes surrendered in exchange for New Notes will be
retired and canceled and cannot be reissued. Accordingly, the issuance of the New Notes will not
result in any increase in our indebtedness.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American deposited the entire proceeds from the sale of the Old Notes with the Trustee under
the Indenture to be held by the Trustee as cash collateral for American&#146;s obligations under the
Notes. See &#147;Description of the Notes &#151; Collateral.&#148;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="127"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF THE NOTES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary describes certain material terms of the Notes. The summary does not
purport to be complete and is qualified in its entirety by reference to all of the provisions of
the Notes, the Indenture and the Aircraft Security Agreement (collectively, the &#147;<I>Operative
Documents</I>&#148;). We urge you to read each of the Operative Documents for additional detail and further
information because they, and not this description, define your rights. Each of the Operative
Documents and specimen copies of the Notes have been filed as exhibits to the registration
statement of which this prospectus constitutes a part. Copies are available as set forth under
&#147;Where You Can Find More Information.&#148; The references to Sections in parentheses in the following
summary are to the relevant Sections of the applicable Operative Document.
</DIV>

<DIV align="left">
<A name="128"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The American Airlines, Inc. 13.0% 2009-2 Secured Notes due 2016 (the &#147;<I>Old Notes</I>&#148;) were issued
on July&nbsp;31, 2009 (the &#147;<I>Issuance Date</I>&#148;) under an Indenture (the &#147;<I>Indenture</I>&#148;) between American and
U.S. Bank Trust National Association, as trustee (the &#147;<I>Trustee</I>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New Notes will be issued pursuant to the Indenture. The forms and terms of the New Notes
are the same in all material respects as the form and terms of the Old Notes, except that the New
Notes:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are registered under the Securities Act and will not be subject to restrictions on
transfer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will bear a different CUSIP and ISIN number than the Old Notes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not entitle their holders to registration rights; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will be subject to terms relating to book-entry procedures and administrative terms
relating to transfers that differ from those of the Old Notes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New Notes will be issued only in fully registered form, without coupons, in minimum
denominations of $2,000 or integral multiples of $1,000 in excess thereof, except that one Note may
be issued in a different denomination. (Indenture, Section&nbsp;2.01(b)) The Notes are secured by a
lien on the collateral and are full recourse obligations of American. See &#147;&#151; Collateral.&#148; The New
Notes will be subject to the provisions described below under &#147;&#151; Book-Entry, Delivery and Form.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although separate Notes are not issued with respect to each Aircraft, the Indenture specifies
that a certain portion of the outstanding principal amount of the Notes is allocable to each
Aircraft (the &#147;<I>Allocable Portion</I>&#148;). The Allocable Portion of the Notes with respect to each
Aircraft on the Cut-Off Date and each Payment Date is specified in Appendix&nbsp;III. For any date
before the first Payment Date, the Allocable Portion of the Notes with respect to each Aircraft
will be the amount specified in Appendix&nbsp;III for the Cut-Off Date. For any date after the first
Payment Date, other than a Payment Date, the Allocable Portion of the Notes with respect to each
Aircraft will be the amount specified in Appendix&nbsp;III for the Payment Date that immediately
precedes such date.
</DIV>

<DIV align="left">
<A name="129"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Payments of Principal and Interest</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes are limited to $276,400,000 of principal in the aggregate. Subject to the
provisions of the Indenture, payments of principal on the Notes are scheduled to be paid on each
February 1 and August&nbsp;1, commencing February&nbsp;1, 2010 (each February 1 and August&nbsp;1, a &#147;<I>Payment
Date</I>&#148;), until August&nbsp;1, 2016 (the &#147;<I>Scheduled Maturity Date</I>&#148;) as set forth below.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Payment</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Payment Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">18,405,129.71</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,859,800.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,313,071.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,766,342.88</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,219,614.32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,672,885.72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,126,157.20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,579,428.57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,032,700.21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,485,971.65</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,911,204.82</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,182,233.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,453,261.99</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">77,392,198.11</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date and the Allocable Portion of the Notes attributable to
each Aircraft that has not been subjected to the lien of the Aircraft Security Agreement is
redeemed, or if any Aircraft subjected to the lien of the Aircraft Security Agreement suffers an
Event of Loss and the Allocable Portion of the Notes with respect to such Aircraft is redeemed, in
each case as set forth under &#147;&#151; Redemption &#151; Mandatory Redemption,&#148; the foregoing principal payment
schedule will change. Such schedule will be recomputed to give effect to such redemptions and
notice thereof will be delivered to the Noteholders as provided in the Indenture. (Indenture,
Section&nbsp;2.07(b))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest accrues on the unpaid principal amount of each Note at the fixed rate per annum set
forth on the cover page of this prospectus, subject to a potential increase if we fail to obtain
ratings for the Notes as described in &#147;Exchange Offer; Registration Rights; Ratings&#148; (the &#147;<I>Stated
Interest Rate</I>&#148;)<I>. </I>Interest on the Notes is payable on each Payment Date. Interest on the Notes
accrues from the most recent date to which interest has been paid or, if no interest has been paid,
from the Issuance Date. Interest on the Notes is calculated on the basis of a 360-day year
consisting of twelve 30-day months.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of principal and interest are made to holders of record of the Notes on the 15th day
preceding the applicable Payment Date, whether or not such record date is a Business Day. If any
date scheduled for a payment of principal, interest or Make-Whole Amount, if any, is not a Business
Day, such payment will be made on the next succeeding Business Day without additional interest.
(Indenture, Section&nbsp;2.07(d))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the money for purposes of any payment of principal or interest on the Notes has not been
deposited, in whole or in part, with the Trustee by American on any Payment Date, the Trustee will
make such payment on the next Business Day on which some or all of the money has been deposited
with the Trustee. However, if some or all of the money has not been deposited with the Trustee for
purposes of making a payment of principal or interest on the Notes within five days after the
Payment Date for such payment, American will be required to fix a special payment date and special
record date for such payment and to give written notice to the Noteholders of such special dates
and the amount of defaulted principal or interest to be paid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Business Day</I>&#148; means any day other than: a Saturday, a Sunday, or other day on which
commercial banks are authorized or required by law to close in New York, New York, Fort Worth,
Texas, or the city and state in which the Trustee is located.
</DIV>

<DIV align="left">
<A name="130"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Redemption</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Mandatory Redemption</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date for any reason, on the Cut-Off Redemption Date, American
will be required to redeem the
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Allocable Portion of the Notes with respect to each Aircraft that
has not been subjected to the lien of the Aircraft Security Agreement. In the case of a redemption
for any reason other than because of the occurrence with respect to such Aircraft of a 1999-1 Event
of Loss (or an event that would constitute a 1999-1 Event of Loss but for the requirement that
notice be given or time elapse or both), the redemption price in such case will be the Allocable
Portion of the Notes with respect to such Aircraft, together with all accrued and unpaid interest
on such Allocable Portion to (but excluding) the date of redemption, plus the Make-Whole Amount, if
any, with respect to such Allocable Portion and all other obligations with respect to such Aircraft
owed or then due and payable to the Noteholders. (Indenture, Section&nbsp;2.19(b)) In the case of a
redemption because of the occurrence with respect to such Aircraft of a 1999-1 Event of Loss (or an
event that would constitute a 1999-1 Event of Loss but for the requirement that notice be given or
time elapse or both), the redemption price in such case will be the Allocable Portion of the Notes
with respect to such Aircraft, together with all accrued and unpaid interest on such Allocable
Portion to (but excluding) the date of redemption, but without any Make-Whole Amount or other
premium, and all other obligations with respect to such Aircraft owed or then due and payable to
the Noteholders. (Indenture, Section&nbsp;2.19(a)) In each case, upon any such partial redemption with
respect to an Aircraft, Cash Collateral in an amount equal to the Allocable Portion of the Notes
attributable to such Aircraft will be released to American so long as no Event of Default shall
have occurred and be continuing, and the obligation of American thereafter to make the scheduled
interest and principal payments with respect to such Allocable Portion of the Notes will cease.
(Indenture, Section&nbsp;1.03(e)) The investment earnings on all such Cash Collateral shall be paid over
to American on the last day on which any Cash Collateral with respect to the Allocable Portion of
the Notes attributable to any Aircraft is released to American.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Loss occurs with respect to an Aircraft that has been subjected to the lien of
the Aircraft Security Agreement and such Aircraft is not replaced by American under the Aircraft
Security Agreement as set forth under &#147;&#151; Certain Provisions of the Aircraft Security Agreement &#151;
Event of Loss,&#148; American will be required to redeem the Allocable Portion of the Notes with respect
to such Aircraft. The redemption price in such case will be the Allocable Portion of the Notes
with respect to such Aircraft, together with all accrued and unpaid interest on such Allocable
Portion to (but excluding) the date of redemption, but without any premium, and all other
obligations with respect to such Aircraft owed or then due and payable to the Noteholders.
(Indenture, Section&nbsp;2.19(c)) Following such partial redemption, the lien on such Aircraft under the
Aircraft Security Agreement will be released and such Aircraft will no longer secure the amounts
that may be owing under the Indenture or the Aircraft Security Agreement. (Aircraft Security
Agreement, Section&nbsp;7.05) In addition, the obligation of American thereafter to make the scheduled
interest and principal payments with respect to such Allocable Portion of the Notes will cease.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Optional Redemption</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All, but not less than all, of the Notes may be redeemed prior to maturity at any time, at the
option of American. The redemption price in such case will be equal to 100% of the unpaid
principal thereof, together with all accrued and unpaid interest thereon to (but excluding) the
date of redemption, plus the Make-Whole Amount (if any), and all other obligations owed or then due
and payable to Noteholders under the Indenture. (Indenture, Section&nbsp;2.20)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>General</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With respect to any redemption, the Trustee will send to each Noteholder a notice of
redemption at least 15&nbsp;days but not more than 60&nbsp;days before any redemption date. If applicable,
such notice shall identify the Allocable Portion of the Notes to be redeemed. If less than all of
the Notes are to be redeemed, the Notes will be redeemed on a pro rata basis. On the redemption
date, interest will cease to accrue on the Notes or the Allocable Portion thereof called for
redemption, unless American fails to make the redemption payment for such Notes. (Indenture,
Section&nbsp;2.24)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Make-Whole Amount</I>&#148; means, with respect to the Notes or any Allocable Portion of the Notes,
the amount (as determined by an independent investment banker selected by American (and, following
the occurrence and during the continuance of an Event of Default, reasonably acceptable to the
Trustee)), if any, by which (i)&nbsp;the present value of the remaining scheduled payments of principal
and interest (or in the case of any Allocable Portion of the Notes, the remaining amounts listed in
Appendix&nbsp;III under &#147;Scheduled Principal Payment&#148; for the relevant Aircraft plus scheduled payments
of interest thereon) from the redemption date to, and including, the Scheduled
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Maturity Date
computed by discounting each such payment on a semiannual basis from its respective payment date
(assuming a 360-day year of twelve 30-day months) using a discount rate equal to the Treasury Yield
plus 0.75% (such percentage, the &#147;<I>Make-Whole Spread</I>&#148;), exceeds (ii)&nbsp;the outstanding aggregate
principal amount of the Notes or such Allocable Portion plus accrued but unpaid interest thereon to
the date of redemption. (Indenture, Annex A)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of determining the Make-Whole Amount, &#147;<I>Treasury Yield</I>&#148; means, at the date of
determination, the interest rate (expressed as a semiannual equivalent and as a decimal rounded to
the number of decimal places as appears in the interest rate applicable to the Notes and, in the
case of United States Treasury bills, converted to a bond equivalent yield) determined to be the
per annum rate equal to the semiannual yield to maturity for United States Treasury securities
maturing on the Average Life Date and trading in the public securities market either as determined
by interpolation between the most recent weekly average constant maturity, non-inflation-indexed
series yield to maturity for two series of United States Treasury securities, trading in the public
securities markets, (A)&nbsp;one maturing as close as possible to, but earlier than, the Average Life
Date and (B)&nbsp;the other maturing as close as possible to, but later than, the Average Life Date, in
each case as reported in the most recent H.15(519) or, if a weekly average constant maturity,
non-inflation-indexed series yield to maturity for United States Treasury securities maturing on
the Average Life Date is reported in the most recent H.15(519), such weekly average yield to
maturity as reported in such H.15(519). &#147;<I>H.15(519)</I>&#148; means the weekly statistical release designated
as such, or any successor publication, published by the Board of Governors of the Federal Reserve
System. The date of determination of a Make-Whole Amount shall be the third Business Day prior to
the applicable redemption date and the &#147;<I>most recent H.15(519)</I>&#148; means the latest H.15(519) published
prior to the close of business on the third Business Day prior to the applicable redemption date.
(Indenture, Annex A)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Average Life Date</I>&#148; for the Notes or each Allocable Portion of the Notes to be redeemed shall
be the date which follows the redemption date by a period equal to the Remaining Weighted Average
Life at the redemption date of the Notes or such Allocable Portion. &#147;<I>Remaining Weighted Average
Life</I>&#148; of the Notes or any Allocable Portion of the Notes, at the redemption date of the Notes or
such Allocable Portion, shall be the number of days equal to the quotient obtained by dividing:
(i)&nbsp;the sum of the products obtained by multiplying (A)&nbsp;the amount of each then remaining
installment of principal, including the payment due on the Scheduled Maturity Date (or in the case
of any Allocable Portion of the Notes, each remaining amount listed in Appendix&nbsp;III under
&#147;Scheduled Principal Payment&#148; for the relevant Aircraft to, and including, the Scheduled Maturity
Date), by (B)&nbsp;the number of days from and including the redemption date to but excluding the
scheduled payment date of such principal installment (or in the case of the any Allocable Portion
of the Notes, the scheduled payment date for such amount so listed in Appendix&nbsp;III) by (ii)&nbsp;the
then unpaid principal amount of the Notes or such Allocable Portion. (Indenture, Annex A)
</DIV>

<DIV align="left">
<A name="131"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Collateral</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the Issuance Date, American entered into the Indenture with the Trustee, providing for the
grant of a security interest in the Cash Collateral. The Trustee invested the Cash Collateral in
certain permitted investments and any interest accruing on the Cash Collateral is, so long as no
Event of Default shall have occurred and be continuing, for American&#146;s account. The investment
earnings on the Cash Collateral shall be paid over to American on the last day on which any Cash
Collateral with respect to the Allocable Portion of the Notes attributable to any Aircraft is
released to American.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On and subject to the terms and conditions of the Indenture, American agreed to subject the
Aircraft to the lien of the Aircraft Security Agreement following the 1999-1 Maturity Date and on
or prior to the Cut-Off Date. This includes an assignment for security purposes to the Security
Agent of certain of American&#146;s warranty rights with respect to such Aircraft under its purchase
agreements with Boeing. (Aircraft Security Agreement, Granting Clause) The subjection of each
Aircraft to the lien of the Aircraft Security Agreement is subject to a number of terms and
conditions, including that no Event of Default (or an event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both) under the Indenture
shall have occurred and be continuing; that no 1999-1 Event of Loss (or an event that would
constitute a 1999-1 Event of Loss but for the requirement that notice be given or time elapse or
both) with respect to such Aircraft shall have occurred and be continuing; that there shall be no
liens on such Aircraft (including the liens created under the applicable 1999-1 Indenture), other
than certain &#147;permitted liens&#148; as defined in the Indenture; that there shall be an assignment for
security purposes of certain of American&#146;s rights under its purchase agreement with the
manufacturer of such
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aircraft; and that American&#146;s General Counsel shall have provided an opinion
that the benefit of Section&nbsp;1110 will be available with respect to such Aircraft. The Aircraft may
be subjected to the lien of the Aircraft Security Agreement on different dates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Release of Cash Collateral</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On and subject to the terms of the Indenture, once an Aircraft has been subjected to the lien
of the Aircraft Security Agreement, and provided that no Event of Default shall have occurred and
be continuing, the Trustee shall release an amount of Cash Collateral equal to the Allocable
Portion of the Notes attributable to such Aircraft to American. The investment earnings on all
such Cash Collateral shall be paid over to American on the last day on which any Cash Collateral
with respect to the Allocable Portion of the Notes attributable to any Aircraft is released to
American.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Aircraft may be subjected to the lien of the Aircraft Security Agreement at various
times following the 1999-1 Maturity Date and on or prior to the Cut-Off Date, no assurance can be
given that all of the terms and conditions therefor in the Indenture will be satisfied on or prior
to the Cut-Off Date. In particular, there is a chance that an Aircraft might suffer a 1999-1 Event
of Loss (or an event that would constitute a 1999-1 Event of Loss but for the requirement that
notice be given or time elapse or both) on or prior to the Cut-Off Date. If for this or other
reasons fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date, American will be obligated to redeem the Allocable
Portion of the Notes with respect to each Aircraft that was not subjected to the lien of the
Aircraft Security Agreement, as described under &#147;&#151; Redemption &#151; Mandatory Redemption&#148; above.
Following such redemptions, Cash Collateral in an amount equal to such Allocable Portion of the
Notes will be released to American so long as no Event of Default shall have occurred and be
continuing. (Indenture, Section&nbsp;1.03(e))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Cash</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash, including the Cash Collateral and funds held as the result of an occurrence of Event of
Loss with respect to an Aircraft, held from time to time by the Trustee or the Security Agent, as
the case may be, is invested and reinvested by the Trustee or the Security Agent, as the case may
be, at the direction of American, in investments described in the Indenture or the Aircraft
Security Agreement, as the case may be. (Indenture, Section&nbsp;5.06; Aircraft Security Agreement,
Section&nbsp;5.06) Such investments are not entitled to the benefits of Section&nbsp;1110. See &#147;Risk Factors
&#151; Risk Factors Relating to the Notes and the Exchange Offer &#151; Payment on the Notes and the ability
to exercise remedies with respect to certain collateral may be restricted in the case of a
bankruptcy of American.&#148;
</DIV>

<DIV align="left">
<A name="132"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Loan to Value Ratios of Notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables in Appendix&nbsp;III to this prospectus set forth LTVs for the Allocable Portion of the
Notes with respect to each Aircraft as of the Cut-Off Date and each Payment Date. For any date
before the first Payment Date, the Allocable Portion of the Notes with respect to each Aircraft
will be the amount specified in Appendix&nbsp;III for the Cut-Off Date. For any date after the first
Payment Date, other than a Payment Date, the Allocable Portion of the Notes with respect to each
Aircraft will be the amount specified in Appendix&nbsp;III for the Payment Date that immediately
precedes such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The LTVs for the Cut-Off Date and each Payment Date listed in the tables in Appendix&nbsp;III were
obtained by dividing (<I>i</I>) the Allocable Portion of the Notes with respect to each Aircraft (assuming
all of the Aircraft are subjected to the lien of the Aircraft Security Agreement on or prior to the
Cut-Off Date, and that no Payment Default or redemption has occurred) determined immediately after
giving effect to any principal payments scheduled to be made on each such date by (<I>ii</I>) the assumed
aircraft value (the &#147;<I>Assumed Aircraft Value</I>&#148;) on such date, calculated based on the Depreciation
Assumption, of such Aircraft.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables in Appendix&nbsp;III are based on the assumption (the &#147;<I>Depreciation Assumption</I>&#148;) that
the Assumed Aircraft Value of each Aircraft depreciates annually by approximately 3% of the value
at delivery per year for the first 15&nbsp;years after delivery of such Aircraft by the manufacturer, by
approximately 4% per year thereafter for the next five years and by approximately 5% each year
after that. The appraised value of each Aircraft is the theoretical
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">value that, when depreciated
from the initial delivery of such Aircraft by the manufacturer in accordance with the Depreciation
Assumption, results in the appraised value of such Aircraft specified under &#147;Prospectus Summary &#151;
The Aircraft&#148; and &#147;Description of the Aircraft and the Appraisals &#151; The Appraisals.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other rates or methods of depreciation could result in materially different LTVs, and no
assurance can be given (<I>i</I>) that the depreciation rate and method assumed for the purposes of the
tables are the ones most likely to occur or (<I>ii</I>) as to the actual future value of any Aircraft.
Thus, the tables should not be considered a forecast or prediction of expected or likely LTVs, but
simply a mathematical calculation based on one set of assumptions. See &#147;Risk Factors &#151; Risk
Factors Relating to the Notes and the Exchange Offer &#151; Appraisals should not be relied upon as a
measure of realizable value of the Aircraft.&#148;
</DIV>

<DIV align="left">
<A name="133"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Events of Default</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the following constitutes an &#147;<I>Event of Default</I>&#148; with respect to the Notes:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure by American to pay any interest, principal or Make-Whole Amount (if any)
within 15&nbsp;days after the same has become due on any Note (such failure, without giving
effect to any such notice or grace period, a &#147;<I>Payment Default</I>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure by American to pay any amount (other than interest, principal or
Make-Whole Amount (if any)) when due under the Indenture or any Note for more than 30
days after American receives written notice from the Trustee or the holders of at least
25% of the principal amount of the outstanding Notes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure by American to perform or observe in any material respect any other
covenant, condition or agreement to be performed or observed by it under the Indenture
(other than American&#146;s obligation to subject the Aircraft to the lien of the Aircraft
Security Agreement on or prior to the Cut-Off Date) that continues for a period of 60
days after American receives written notice from the Trustee or the holders of at least
25% of the principal amount of the outstanding Notes; <I>provided </I>that, if such failure is
capable of being remedied, no such failure will constitute an Event of Default for a
period of one year after such notice is received by American so long as American is
diligently proceeding to remedy such failure;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any representation or warranty made by American in the Indenture or in any Note
proves to have been incorrect in any material respect when made, and such incorrectness
continues to be material to the transactions contemplated by the Indenture and remains
unremedied for a period of 60&nbsp;days after American receives written notice from the
Trustee or the holders of at least 25% of the principal amount of the outstanding
Notes; <I>provided </I>that, if such incorrectness is capable of being remedied, no such
incorrectness will constitute an Event of Default for a period of one year after such
notice is received by American so long as American is diligently proceeding to remedy
such incorrectness;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the occurrence of certain events of bankruptcy, reorganization or insolvency of
American (each, an &#147;<I>American Bankruptcy Event</I>&#148;); or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>after the Aircraft Security Agreement is entered into, the occurrence of an Aircraft
Security Event of Default. (Indenture, Section&nbsp;4.01)</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the following constitutes an &#147;<I>Aircraft Security Event of Default</I>&#148; with respect to the
Notes:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure by American to pay to the Security Agent any amount when due under the
Aircraft Security Agreement for more than 30&nbsp;days after American receives written
notice from the Security Agent or the Trustee;</TD>
</TR>


</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure by American to carry and maintain (or cause to be maintained) insurance
or indemnity on or with respect to any Aircraft that has been subjected to the lien of
the Aircraft Security Agreement in accordance with the provisions of the Aircraft
Security Agreement; <I>provided </I>that no such failure to carry and maintain insurance will
constitute an Aircraft Security Event of Default until the earlier of (<I>i</I>) the date such
failure has continued unremedied for a period of 30&nbsp;days after the Security Agent
receives notice of the cancellation or lapse of such insurance or (<I>ii</I>) the date such
insurance is not in effect as to the Security Agent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the failure by American to perform or observe (or cause to be performed or observed)
in any material respect any other covenant, condition or agreement to be performed or
observed by it under the Aircraft Security Agreement that continues for a period of 60
days after American receives written notice from the Security Agent or the Trustee;
<I>provided </I>that, if such failure is capable of being remedied, no such failure will
constitute an Aircraft Security Event of Default for a period of one year after such
notice is received by American so long as American is diligently proceeding to remedy
such failure; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any representation or warranty made by American in the Aircraft Security Agreement
proves to have been incorrect in any material respect when made, and such incorrectness
continues to be material to the transactions contemplated by the Aircraft Security
Agreement and remains unremedied for a period of 60&nbsp;days after American receives
written notice from the Security Agent or the Trustee; <I>provided </I>that, if such
incorrectness is capable of being remedied, no such incorrectness will constitute an
Aircraft Security Event of Default for a period of one year after such notice is
received by American so long as American is diligently proceeding to remedy such
incorrectness;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><I>provided </I>that notwithstanding anything to the contrary contained in the foregoing, any
failure by American to perform or observe any covenant, condition or agreement shall not
constitute an Aircraft Security Event of Default if such failure arises by reason of an
event referred to in the definition of &#147;Event of Loss&#148; so long as American is continuing to
comply with all of the terms described under &#147;&#151; Certain Provisions of the Aircraft Security
Agreement &#151; Event of Loss.&#148; (Aircraft Security Agreement, Section&nbsp;4.01)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an event occurs and is continuing which is, or after notice or passage of time, or both,
would be an Event of Default (a &#147;<I>Default</I>&#148;) and if such Default is known to the Trustee, the Trustee
shall mail to American, the Security Agent and each Noteholder notice of such Default within 90
days after the occurrence thereof except as otherwise permitted by the Trust Indenture Act. Except
in the case of a Payment Default, the Trustee may withhold the notice if and so long as it, in good
faith, determines that withholding the notice is in the interests of the Noteholders. (Indenture,
Section&nbsp;5.05)
</DIV>

<DIV align="left">
<A name="134"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Remedies</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default (other than an American Bankruptcy Event) occurs and is continuing, the
Trustee may, and upon receipt of written instruction of the holders of a majority of the principal
amount of the outstanding Notes, the Trustee shall, declare by notice to American, all unpaid
principal of, and accrued but unpaid interest on, the outstanding Notes and other amounts otherwise
payable under the Indenture, if any, to be due and payable immediately (without premium). If an
American Bankruptcy Event occurs, such amounts shall be due and payable without any declaration or
other act on the part of the Trustee or any Noteholder. The holders of a majority of the principal
amount of the outstanding Notes by notice to the Trustee may rescind an acceleration and its
consequences if (<I>i</I>) there has been paid to or deposited with the Trustee an amount sufficient to
pay all overdue installments of principal and interest on the Notes, and all other amounts owing
under the Operative Documents, that have become due otherwise than by such declaration of
acceleration and (<I>ii</I>) all other Events of Default, other than nonpayment of principal amount or
interest on the Notes that have become due solely because of such acceleration, have been cured or
waived<I>; provided </I>that no such rescission or annulment will extend to or affect any subsequent
Default or Event of Default or impair any right consequent thereon. (Indenture, Section&nbsp;4.02(d))
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of a majority of the principal amount of the outstanding Notes by notice to the
Trustee may authorize the Trustee to waive an existing Default or Event of Default and its
consequences, except a Default or Event of Default (<I>i</I>) in the payment of principal of, interest on,
or Make-Whole Amount, if any, with respect to, any Note (other than with the consent of the holder
thereof) or (<I>ii</I>) in respect of a covenant or provision of the Indenture or the Aircraft Security
Agreement that cannot be amended or supplemented without the consent of each Noteholder affected
thereby. See &#147;&#151; Modifications and Waiver of the Indenture and Certain Other Operative Documents.&#148;
When a Default or Event of Default is waived, it is cured and ceases, and American, the
Noteholders, the Trustee and the Security Agent shall be restored to their former positions and
rights hereunder respectively; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon. (Indenture, Section&nbsp;4.05)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Noteholder may institute any remedy with respect to the Indenture, the Aircraft Security
Agreement or the Notes unless such Noteholder has previously given to the Trustee written notice of
a continuing Event of Default, the holders of at least 25% of the principal amount of the
outstanding Notes have requested in writing that the Trustee pursue the remedy, such holder has
offered the Trustee indemnity against any loss, liability and expense satisfactory to the Trustee,
the Trustee has failed so to act for 60&nbsp;days after receipt of the same and during such 60&nbsp;day
period, the holders of a majority of the principal amount of the outstanding Notes have not given
the Trustee a direction inconsistent with the request. (Indenture, Section&nbsp;4.06) Notwithstanding
the foregoing, the right of any Noteholder to receive payment when due of principal, interest and
Make-Whole Amount, if any, or to bring suit for the enforcement of any such payment, shall not be
impaired or affected without the consent of such Noteholder. (Indenture, Section&nbsp;4.09)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of a majority of the principal amount of the outstanding Notes may direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee
(subject, in the case of any actions based on the status of the Trustee as trustee, to any
limitations otherwise expressly provided for in the Operative Documents) or exercising any trust or
power conferred on it; <I>provided </I>that the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction. The Trustee may refuse to follow any
direction or authorization if the Trustee has been advised by counsel that such action requested is
contrary to the Indenture or is otherwise contrary to law. The Trustee shall have no obligation to
take any action requested by the Noteholders unless it receives a satisfactory indemnification from
them for following any actions or omissions to act which are in accordance with any such direction
or authorization. (Indenture, Sections&nbsp;4.02(b) and 5.01(d))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indenture and the Aircraft Security Agreement provide that, if an Event of Default has
occurred and is continuing, the Trustee or the Security Agent, as the case may be, may exercise
certain rights or remedies available to it under the Indenture and the Aircraft Security Agreement
or under applicable law. Such remedies include the right to take possession of any Aircraft
subject to the Aircraft Security Agreement and to sell all or any part of the Airframe or any
Engine comprising such Aircraft. (Indenture, Section&nbsp;4.02(a); Aircraft Security Agreement, Section
4.02(a))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default occurs and is continuing, any sums held or received by the Trustee may
be applied to reimburse the Trustee and the Security Agent for any tax, expense or other loss
incurred by it and to pay any other amounts due to the Trustee or the Security Agent prior to any
payments to Noteholders. (Indenture, Section&nbsp;3.03)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of Chapter&nbsp;11 bankruptcy proceedings in which an air carrier is a debtor, Section
1110 provides special rights to holders of security interests with respect to &#147;equipment&#148; (as
defined in Section&nbsp;1110). Section&nbsp;1110 provides that, subject to the limitations specified
therein, the right of a secured party with a security interest in &#147;equipment&#148; to take possession of
such equipment in compliance with the provisions of a security agreement and to enforce any of its
rights or remedies thereunder is not affected after 60&nbsp;days after the date of the order for relief
in a case under Chapter&nbsp;11 of the Bankruptcy Code by any provision of the Bankruptcy Code. Section
1110, however, provides that the right to take possession of an aircraft and enforce other remedies
may not be exercised for 60&nbsp;days following the date of the order for relief (or such longer period
consented to by the holder of a security interest and approved by the court) and may not be
exercised at all after such period if the trustee in reorganization agrees, subject to the approval
of the court, to perform the debtor&#146;s obligations under the security agreement and cures all
defaults (other than a default of a kind specified in Section&nbsp;365(b)(2) of the Bankruptcy Code,
such as a default that is a breach of a provision relating to the financial condition, bankruptcy
or insolvency of the debtor).
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Equipment</I>&#148; is defined in Section&nbsp;1110, in part, as &#147;an aircraft, aircraft engine, propeller,
appliance, or spare part (as defined in section 40102 of title 49 of the United States Code) that
is subject to a security interest granted by, leased to, or conditionally sold to a debtor that, at
the time such transaction is entered into, holds an air carrier operating certificate issued
pursuant to chapter 447 of title 49 of the United States Code for aircraft capable of carrying 10
or more individuals or 6,000 pounds or more of cargo.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is a condition to the subjection of an Aircraft to the lien of the Aircraft Security
Agreement that American&#146;s General Counsel provide an opinion to the Trustee and the Security Agent
that, if American were to become a debtor under Chapter&nbsp;11 of the Bankruptcy Code, the Trustee
would be entitled to the benefits of Section&nbsp;1110 with respect to the Airframe and Engines
comprising such Aircraft. This opinion will be subject to certain qualifications and assumptions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinion of American&#146;s General Counsel will not address the possible replacement of an
Aircraft after an Event of Loss in the future, the consummation of which is conditioned upon the
contemporaneous delivery of an opinion of counsel to the effect that the Security Agent will be
entitled to Section&nbsp;1110 benefits with respect to the replacement Airframe unless there is a change
in law or court interpretation that results in Section&nbsp;1110 not being available. See &#147;&#151; Certain
Provisions of the Aircraft Security Agreement &#151; Events of Loss.&#148; The opinion of American&#146;s General
Counsel also will not address the availability of Section&nbsp;1110 with respect to the bankruptcy
proceedings of any possible lessee of an Aircraft if it is leased by American.
</DIV>

<DIV align="left">
<A name="135"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Post Default Appraisals</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence and continuation of an Event of Default, the Trustee will be required to
obtain three desktop appraisals from the Appraisers or other appraisers selected by the holders of
a majority of the principal amount of the outstanding Notes setting forth the appraised current
market value, current lease rate and distressed value (in each case, as defined by the
International Society of Transport Aircraft Trading or any successor organization) of the Aircraft
subject to the lien of the Aircraft Security Agreement (each such appraisal, an &#147;<I>Appraisal</I>&#148;). For
so long as any Event of Default shall be continuing, the Trustee will be required to obtain
additional Appraisals on the date that is 364&nbsp;days from the date of the most recent Appraisal or if
an American Bankruptcy Event shall have occurred and is continuing, on the date that is 180&nbsp;days
from the date of the most recent Appraisal and shall post such Appraisals on the DTC&#146;s Internet
bulletin board or make such other commercially reasonable efforts as the holders of a majority of
the principal amount of the outstanding Notes may deem appropriate to make such Appraisals
available to all Noteholders. (Indenture, Section&nbsp;4.02(e))
</DIV>

<DIV align="left">
<A name="136"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Priority of Distributions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the existence of an Event of Default, if the Notes have become due and payable in full
as described in &#147;&#151; Remedies,&#148; all amounts received by the Trustee in respect of the Notes will be
promptly paid in the following order:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the Trustee or the Security Agent, to the extent required to pay, reimburse or
indemnify for any tax, expense or loss actually incurred by the Trustee or the Security
Agent and to pay certain out-of-pocket costs and expenses actually incurred by the
Trustee or the Security Agent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to reimburse any Noteholder in respect of indemnification payments made to the
Trustee or the Security Agent in connection with actions taken by the Trustee or the
Security Agent at the direction of the Noteholders (including actions taken in
connection with the exercise of remedies), in each case, pro rata;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the Noteholders, to the extent required to pay in full amounts due on the Notes;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the Company. (Indenture, Section&nbsp;3.03)</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<A name="137"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Reports</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promptly after the occurrence of an American Bankruptcy Event or an Event of Default resulting
from the failure of American to make payments on any Note and on every Payment Date while the
American Bankruptcy Event or such Event of Default shall be continuing, the Trustee will provide to
the Noteholders and American a statement setting forth the following information:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>after an American Bankruptcy Event, with respect to each Aircraft subject to the
lien of the Aircraft Security Agreement, whether such Aircraft is (<I>i</I>) subject to the
60-day period of Section&nbsp;1110, (<I>ii</I>) subject to an election by American under Section
1110(a) of the Bankruptcy Code, (<I>iii</I>) covered by an agreement contemplated by Section
1110(b) of the Bankruptcy Code or (<I>iv</I>) not subject to any of (<I>i</I>), (<I>ii</I>) or (<I>iii</I>);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the best of the Trustee&#146;s knowledge, after requesting such information from
American, (<I>i</I>) whether each such Aircraft is currently in service or parked in storage,
(<I>ii</I>) the maintenance status of such Aircraft and (<I>iii</I>) location of the Engines
associated with such Aircraft. American has agreed to provide such information upon
request of the Trustee, but no more frequently than every three months with respect to
each Aircraft so long as it is subject to the lien of the Aircraft Security Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the current aggregate outstanding principal amount of the Notes and the Allocable
Portion of the Notes for each such Aircraft as of the next Payment Date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the expected amount of interest which will have accrued on the Notes as of the next
Payment Date;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other amounts expected to be paid to each person on the next Payment Date pursuant
to the Indenture;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>details of the amounts expected to be paid on the next Payment Date identified by
reference to the relevant provision of the Indenture; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>after an American Bankruptcy Event, any operational reports filed by American with
the bankruptcy court which are available to the Trustee on a non-confidential basis.
(Indenture, Section&nbsp;6.01)</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, American shall furnish to the Trustee within 120&nbsp;days after the end of each
calendar year a certificate signed by a principal executive officer, principal financial officer or
principal accounting officer of American stating that to his or her knowledge during such preceding
calendar year no Default or Event of Default has occurred (or, if a Default or Event of Default
shall have occurred, describing all such Defaults or Events of Default of which he or she may have
knowledge). (Indenture, Section&nbsp;10.03(c))
</DIV>

<DIV align="left">
<A name="138"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Modifications and Waiver of the Indenture and Certain Other Operative Documents</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American and the Trustee may amend or supplement the Indenture, the Notes, the Aircraft
Security Agreement and any related document, in each case without notice to or the consent of the
Noteholders:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to evidence the succession of another entity to American and provide for the
assumption by such entity of American&#146;s obligations under the Indenture, the Notes, the
Aircraft Security Agreement and any related document in the case of a merger,
consolidation or transfer of all or substantially all of the assets of American;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to add to the covenants of American for the benefit of Noteholders, or surrender any
right or power conferred upon American in the Indenture, the Notes, the Aircraft
Security Agreement or any related document;</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->45<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to comply with requirements of the SEC or otherwise to the extent necessary in
connection with, or to continue, the qualification of the Indenture or any other
agreement under the Trust Indenture Act or under any similar U.S. federal statute or to
add provisions permitted by the Trust Indenture Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to add or change any of the provisions of the Indenture or the other Operative
Documents as necessary or advisable to obtain credit ratings on the Notes; <I>provided</I>
that no such addition or change shall materially adversely affect the interest of any
Noteholder, as evidenced solely by the delivery of the certificate of an officer of
American;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to comply with any requirement of the SEC or of any other regulatory body or to
comply with any applicable law, rules, or regulations of or relating to any exchange or
quotation system on which any Notes are listed (or to facilitate any listing of any
Notes on any exchange or quotation system);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to comply with any requirement of DTC, Euroclear, Clearstream or like depositary, or
of the Trustee, in respect of the provisions of the Indenture, the Notes, the Aircraft
Security Agreement or any related document, relating to transfers and exchanges of the
Notes or beneficial interests therein, or to include on the Notes any legend as may be
required by law or as may otherwise be necessary or advisable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to provide for any successor or additional Trustee or Security Agent with respect to
the Notes or to add to or change any of the provisions of the Indenture or the Aircraft
Security Agreement as shall be necessary or advisable to provide for or facilitate the
administration of the trusts under the Indenture or the Aircraft Security Agreement by
more than one Trustee or Security Agent, respectively;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to provide for the delivery of Notes or any supplement to the Indenture, the Notes,
the Aircraft Security Agreement or any other related document in or by means of any
computerized, electronic, or other medium, including computer diskette;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to provide for the guarantee by AMR Corporation or another entity of the Indenture,
the Notes, the Aircraft Security Agreement or any other related document, and to make
appropriate provisions in respect of such guarantor;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to correct, supplement or amplify the description of the collateral, or convey,
transfer, assign, mortgage or pledge any property to or with the Trustee or Security
Agent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to cure any ambiguity or correct any mistake, defect or inconsistency;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to make any other change not inconsistent with the Indenture or the Aircraft
Security Agreement; <I>provided </I>that such action does not materially adversely affect the
interests of any Noteholder. (Indenture, Section&nbsp;12.01)</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, subject to certain limited exceptions described below, American and the Trustee
may otherwise amend or supplement the Indenture, the Notes, the Aircraft Security Agreement and any
other related documents, with the consent of the holders a majority of the principal amount of the
outstanding Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether before or after the occurrence of an Event of Default, the holders a majority of the
principal amount of the outstanding Notes may authorize the Trustee to, and the Trustee upon such
authorization shall, waive compliance by American with any provision of the Indenture, the Notes,
the Aircraft Security Agreement or any
related document (other than certain provisions in the Indenture and the Aircraft Security
Agreement as described below). However, no amendment, supplement or waiver of any provision in the
Indenture, any Note, the Aircraft Security Agreement or any related document may, without the
consent of each Noteholder affected:
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->46<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the amount of Notes whose holders must consent to an amendment, supplement or
waiver;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the rate or change the time for payment of interest on any Note;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reduce the amount or change the time for payment of principal of, redemption price
of, or Make-Whole Amount, if any, with respect to (in each case, whether on redemption
or otherwise), any Note;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the place of payment where, or the coin or currency in which any Note (or the
redemption price thereof), interest thereon or Make-Whole Amount, if any, with respect
thereto, is payable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>change the priority of distributions and application of payments specified in the
Indenture in a manner materially adverse to the Noteholders;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>impair the right of any Noteholder to institute suit for the enforcement of any
amount of principal or interest payable on any Note when due;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>waive a Payment Default with respect to any Note; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>create any lien with respect to any part of the collateral, including any Aircraft
subjected to the lien of the Aircraft Security Agreement, that is prior to or <I>pari
passu </I>with the lien thereon pursuant to the Indenture or the Aircraft Security
Agreement, as applicable, except as permitted by the Indenture or the Aircraft Security
Agreement, or deprive the Trustee or the Security Agent of the benefit of the lien on
the collateral, including any such Aircraft, created by the Indenture or the Aircraft
Security Agreement, except as permitted by the Indenture or the Aircraft Security
Agreement. (Indenture, Section&nbsp;12.02)</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American or any affiliate of American may, to the extent permitted by applicable law, at any
time purchase or otherwise acquire any or all of the Notes, including in the open market or by
tender at any price or by private agreement. In determining whether the holders of the required
principal amount of the Notes have consented to an amendment, modification or waiver, any such
Notes owned by American or any affiliate of American will be disregarded and deemed not
outstanding. (Indenture, Section&nbsp;2.13)
</DIV>

<DIV align="left">
<A name="139"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Merger, Consolidation and Transfer of Assets</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American is prohibited from consolidating with or merging into any other entity where American
is not the surviving entity or conveying, transferring, or leasing substantially all of its assets
as an entirety to any other entity unless:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the successor or transferee entity is organized and validly existing under the laws
of the United States or any state thereof or the District of Columbia;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the successor or transferee entity is, if and to the extent required under Section
1110 in order that the Trustee continues to be entitled to any benefits of Section&nbsp;1110
with respect to an Aircraft that has been subjected to the lien of the Aircraft
Security Agreement, a &#147;<I>citizen of the United States</I>&#148; (as defined in Title 49 of the
United States Code relating to aviation (the &#147;<I>Transportation Code</I>&#148;)) holding an air
carrier operating certificate issued by the Secretary of Transportation pursuant to
Chapter&nbsp;447 of the Transportation Code;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the successor or transferee entity expressly assumes all of the obligations of
American contained in the Notes, the Indenture and the Aircraft Security Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Aircraft that have been subjected to the lien of the Aircraft Security
Agreement are, at the time, registered with the FAA or such person is located in a
&#147;Contracting State&#148; (as such term is</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->47<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>used in the Cape Town Treaty), the transferor or
successor entity makes such filings and recordings with the FAA pursuant to the
Transportation Code and registrations under the Cape Town Treaty, or, if the Aircraft
are, at the time, not registered with the FAA, the transferor or successor entity makes
such filings and recordings with the applicable aviation authority, as are necessary to
evidence such consolidation, merger or transfer; and</TD>
</TR>
<TR style="font-size: 6pt"><TD>&nbsp;</TD></TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>American has delivered a certificate and an opinion or opinions of counsel
indicating that such transaction, in effect, complies with such conditions.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, after giving effect to such transaction, no Event of Default shall have occurred
and be continuing. (Indenture, <font style="white-space: nowrap">Section&nbsp;10.02(e))</font>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the Notes or any of the other Operative Documents contain any covenants or provisions
which may afford the Trustee, the Security Agent or Noteholders protection in the event of a highly
leveraged transaction, including transactions effected by management or affiliates, which may or
may not result in a change in control of American.
</DIV>

<DIV align="left">
<A name="140"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Book-Entry, Delivery and Form</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New Notes will be issued in book-entry form only, which means that the New Notes will be
represented by one or more permanent global certificates (&#147;<I>Global Notes</I>&#148;) registered in the name of
DTC or its nominee. You may hold interests in the Notes directly through DTC, Euroclear or
Clearstream if you are a participant in any of these clearing systems, or indirectly through
organizations which are participants in those systems. Links have been established among DTC,
Clearstream and Euroclear to facilitate the issuance of the Notes and cross-market transfers of the
Notes associated with secondary market trading. DTC is linked indirectly to Clearstream and
Euroclear through the depositary accounts of their respective U.S. depositaries. Notes in
book-entry form can be exchanged for definitive Notes under the circumstances described under &#147;&#151;The
Notes.&#148;
</DIV>

<DIV align="left">
<A name="141"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Book-Entry Procedures for the Global Notes</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All interests in the Global Notes, including those held through Euroclear or Clearstream, may
be subject to the procedures and requirements of DTC. Those interests held through Euroclear or
Clearstream may also be subject to the procedures and requirements of their systems. The
descriptions of the operations and procedures of DTC, Euroclear and Clearstream described below are
provided solely as a matter of convenience. These operations and procedures are solely within the
control of these settlement systems and are subject to change by them from time to time. Neither we
nor any paying agent, if applicable, takes any responsibility for these operations or procedures,
and investors are urged to contact the relevant system or its participants directly to discuss
these matters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The clearing systems have advised us as follows:
</DIV>

<DIV align="left">
<A name="142"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>DTC</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC is a limited-purpose trust company organized under the New York Banking Law, a banking
organization within the meaning of the New York Banking Law, a member of the U.S. Federal Reserve
System, a clearing corporation within the meaning of the New York Uniform Commercial Code and a
clearing agency registered under Section&nbsp;17A of the Exchange Act. DTC holds securities that its
participants, known as DTC participants, deposit with DTC. DTC also facilitates the settlement
among DTC participants of securities transactions, such as transfers and pledges, in deposited
securities through computerized records for DTC participants&#146; accounts. This eliminates the need to
exchange certificates. DTC participants include securities brokers and dealers, banks, trust
companies, clearing corporations and certain other organizations. DTC&#146;s book-entry system
is also used by other organizations such as securities brokers and dealers, banks and trust
companies that work through a DTC participant. The rules that apply to DTC and its participants are
on file with the SEC.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect that pursuant to procedures established by DTC:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon deposit of each Global Note, DTC will credit the accounts of participants in
DTC with an interest in the Global Note; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ownership of the Notes will be shown on, and the transfer of ownership of the Notes
will be effected only through, records maintained by DTC, with respect to the interests
of participants in DTC, and the records of participants and indirect participants, with
respect to the interests of persons other than participants in DTC.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The laws of some jurisdictions may require that some purchasers of securities take physical
delivery of the securities in definitive form. Accordingly, the ability to transfer interests in
the Notes represented by a Global Note to these persons may be limited. In addition, because DTC
can act only on behalf of its participants, who in turn act on behalf of persons who hold interests
through participants, the ability of a person having an interest in Notes represented by a Global
Note to pledge or transfer that interest to persons or entities that do not participate in DTC&#146;s
system, or to otherwise take actions in respect of that interest, may be affected by the lack of a
physical definitive security in respect of the interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as DTC or its nominee is the registered owner of a Global Note, DTC or the nominee, as
the case may be, will be considered the sole owner or Noteholder represented by the Global Note for
all purposes under the Indenture. Except as provided below, owners of beneficial interests in a
Global Note:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not be entitled to have Notes represented by the Global Note registered in
their names;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not receive or be entitled to receive physical delivery of certificated Notes;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not be considered the owners or Noteholders under the Indenture for any
purpose, including with respect to the giving of any direction, instruction or approval
to the Trustee under the Indenture.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, each holder owning a beneficial interest in a Global Note must rely on the
procedures of DTC and, if the holder is not a participant or an indirect participant in DTC, on the
procedures of the DTC participant through which the holder owns its interest, to exercise any
rights of a Noteholder under the Indenture or the Global Note. We understand that under existing
industry practice, if we request any action of Noteholder, or a holder that is an owner of a
beneficial interest in a Global Note desires to take any action that DTC, as the holder of the
Global Note, is entitled to take, then DTC would authorize its participants to take the action and
the participants would authorize holders owning through participants to take the action or would
otherwise act upon the instruction of such holders. Neither we, the Trustee nor any paying agent,
if applicable will have any responsibility or liability for any aspect of the records relating to
or payments made on account of Notes by DTC, or for maintaining, supervising or reviewing any
records of DTC relating to the Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments with respect to the principal of, Make-Whole Amount, if any, and interest on, any
Notes represented by a Global Note registered in the name of DTC or its nominee on the applicable
record date will be payable by the Trustee or any paying agent, if applicable, to or at the
direction of DTC or its nominee in its capacity as the registered holder of the Global Note
representing those Notes under the Indenture. Under the terms of the Indenture, we, the Trustee and
any paying agent, if applicable may treat the persons in whose names the Notes, including the
Global Notes, are registered as the owners of the Notes for the purpose of receiving payment on the
Notes and for any and all other purposes whatsoever. Accordingly, neither we, the Trustee nor any
paying agent, if applicable, has or will have any responsibility or liability for the payment of
amounts to owners of beneficial interests in a Global Note, including principal, premium, if any,
additional interest, if any, and interest. Payments by the participants and the indirect
participants in DTC to the owners of beneficial interests in a Global Note will be governed by
standing instructions and customary industry practice and will be the responsibility of the
participants
or the indirect participants and DTC. Transfers between participants in DTC will be effected
in accordance with DTC&#146;s procedures, and will be settled in same-day funds. Transfers between
participants in Euroclear or Clearstream will be effected in the ordinary way in accordance with
their respective rules and operating procedures.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon receipt of any payment of principal or interest, DTC will credit DTC participants&#146;
accounts on the payment date according to such participants&#146; respective holdings of beneficial
interests in the Global Notes as shown on DTC&#146;s records. In addition, it is DTC&#146;s current practice
to assign any consenting or voting rights to DTC participants whose accounts are credited with
securities on a record date by using an omnibus proxy. Payments by DTC participants to owners of
beneficial interests in the Global Notes, and voting by DTC participants, will be governed by the
customary practices between the DTC participants and owners of beneficial interests, as is the case
with securities held for the accounts of customers registered in street name. However, these
payments will be the responsibility of the DTC participants and not of DTC, the Trustee, any paying
agent, if applicable, or us.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Clearstream</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clearstream is incorporated under the laws of Luxembourg as a professional depositary.
Clearstream holds securities for its participating organizations, known as Clearstream
participants, and facilitates the clearance and settlement of securities transactions between
Clearstream participants through electronic book-entry changes in accounts of Clearstream
participants, eliminating the need for physical movement of certificates. Clearstream provides to
Clearstream participants, among other things, services for safekeeping, administration, clearance
and settlement of internationally traded securities and securities lending and borrowing.
Clearstream interfaces with domestic markets in several countries. As a professional depositary,
Clearstream is subject to regulation by the Luxembourg Monetary Institute. Clearstream participants
are recognized financial institutions around the world, including underwriters, securities brokers
and dealers, banks, trust companies, clearing corporations and certain other organizations.
Indirect access to Clearstream is also available to others, such as banks, brokers, dealers and
trust companies that clear through or maintain a custodial relationship with a Clearstream
participant either directly or indirectly.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions with respect to Global Notes held beneficially through Clearstream will be
credited to cash accounts of Clearstream participants in accordance with its rules and procedures,
to the extent received by the U.S. depositary for Clearstream.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Euroclear</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Euroclear was created in 1968 to hold securities for its participants, known as Euroclear
participants, and to clear and settle transactions between Euroclear participants and between
Euroclear participants and participants of certain other securities intermediaries through
simultaneous electronic book-entry delivery against payment, eliminating the need for physical
movement of certificates and any risk from lack of simultaneous transfers of securities and cash.
Euroclear is owned by Euroclear Clearance System Public Limited Company and operated through a
license agreement by Euroclear Bank, S.A./N.V., known as the Euroclear operator. The Euroclear
operator provides Euroclear participants, among other things, with safekeeping, administration,
clearance and settlement, securities lending and borrowing and related services. Euroclear
participants include banks (including central banks), securities brokers and dealers and other
professional financial intermediaries.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indirect access to Euroclear is also available to others that clear through or maintain a
custodial relationship with a Euroclear participant, either directly or indirectly.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Euroclear operator is regulated and examined by the Belgian Banking and Finance
Commission. Securities clearance accounts and cash accounts with the Euroclear operator are
governed by the Terms and Conditions Governing Use of Euroclear and the related Operating
Procedures of the Euroclear System, and applicable Belgian law, collectively referred to as the
terms and conditions. The terms and conditions govern transfers of securities and cash within
Euroclear, withdrawals of securities and cash from Euroclear, and receipts of payments with respect
to securities in Euroclear. All securities in Euroclear are held on a fungible basis without
attribution of specific certificates to specific securities clearance accounts. The Euroclear
operator acts under the terms and conditions only on behalf of Euroclear participants, and has no
record of or relationship with persons holding through Euroclear participants.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions with respect to Global Notes held beneficially through Euroclear will be
credited to the cash accounts of Euroclear participants in accordance with the terms and
conditions, to the extent received by the U.S. depositary for Euroclear.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Global Clearance and Settlement Procedures</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secondary market trading between DTC participants will occur in the ordinary way in accordance
with DTC rules and will be settled in same-day funds using DTC&#146;s Same-Day Funds Settlement System.
Secondary market trading between Clearstream participants and/or Euroclear participants will occur
in the ordinary way in accordance with the applicable rules and operating procedures of Clearstream
and Euroclear and will be settled using the procedures applicable to conventional eurobonds in
same-day funds.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cross-market transfers between persons holding directly or indirectly through DTC
participants, on the one hand, and directly or indirectly through Clearstream or Euroclear
participants, on the other, will be effected in DTC in accordance with DTC rules on behalf of the
European international clearing system by its U.S. depositary; however, these cross-market
transactions will require delivery of instructions to the European international clearing system by
the counterparty in that system in accordance with its rules and procedures and within its
established deadlines (European time). The European international clearing system will, if a
transaction meets its settlement requirements, deliver instructions to its U.S. depositary to take
action to effect final settlement on its behalf by delivering or receiving interests in the
relevant Global Notes in DTC, and making or receiving payment in accordance with normal procedures
for settlement in DTC. Clearstream participants and Euroclear participants may not deliver
instructions directly to their respective U.S. depositary.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because of time-zone differences, credits of Global Notes received in Clearstream or Euroclear
as a result of a transaction with a DTC participant will be made during subsequent securities
settlement processing and dated the business day following the DTC settlement date. The credits or
any transactions in the Global Notes settled during this processing will be reported to the
Clearstream or Euroclear participants on the same business day. Cash received in Clearstream or
Euroclear as a result of sales of the Global Notes by or through a Clearstream participant or a
Euroclear participant to a DTC participant will be received with value on the DTC settlement date
but will be available in the Clearstream or Euroclear cash account only as of the business day
following settlement in DTC.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although DTC, Clearstream and Euroclear are expected to follow these procedures in order to
facilitate transfers of interests in the Global Notes among participants of DTC, Clearstream and
Euroclear, they will be under no obligation to perform or continue to perform these procedures and
these procedures may be changed or discontinued at any time. Neither we, the Trustee nor any paying
agent, if applicable, will have any responsibility for the performance by DTC, Euroclear or
Clearstream or their respective participants or indirect participants of their respective
obligations under the rules and procedures governing their operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Exchanges of Book-Entry Notes for Certificated Notes</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You may not exchange your beneficial interest in a Global Note for a Note in certificated form
unless:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DTC (<I>a</I>) notifies us that it is unwilling or unable to continue as depository
for the Global Note or (<I>b</I>) has ceased to be a clearing agency registered under the
Exchange Act, and in either case we thereupon fail to appoint a successor depository;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we, at our option, notify the Trustee in writing that we are electing to issue
the Notes in certificated form; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an Event of Default shall have occurred and be continuing with respect to the
Notes and the Trustee has received a written request from DTC to issue Notes in
certificated form.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In all cases, certificated Notes delivered in exchange for any Global Note or beneficial
interests therein will be registered in the names, and issued in any approved denominations,
requested by or on behalf of the depository (in accordance with its customary procedures). Any such
exchange will be effected through the DTC
Deposit/Withdraw at Custodian system and an appropriate adjustment will be made in the records
of the security registrar to reflect a decrease in the principal amount of the relevant Global
Note.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="143"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Indemnification</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American has agreed to indemnify the Trustee and the Security Agent, but not the Noteholders,
for certain losses, claims and other matters. (Indenture, Section&nbsp;8.02) Neither the Trustee nor
the Security Agent will be indemnified, however, for actions arising from its negligence or willful
misconduct, or for the inaccuracy of any representation or warranty made in its individual capacity
under the Indenture or the Aircraft Security Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Trustee nor the Security Agent will be required to take any action or refrain from
taking any action (other than notifying the Noteholders if it knows of an Event of Default as
described under &#147;&#151;Events of Default&#148;) unless it has received indemnification satisfactory to it
against any risks incurred in connection therewith. (Indenture, Section&nbsp;5.01(d); Aircraft Security
Agreement, Section&nbsp;5.01(d))
</DIV>

<DIV align="left">
<A name="144"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Provisions of the Aircraft Security Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following describes the terms of the Aircraft Security Agreement that will apply to each
Aircraft that has been subjected to the lien of the Aircraft Security Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Maintenance and Operation</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of the Aircraft Security Agreement, American will be obligated, among other
things and at its expense, to keep each Aircraft duly registered, and to maintain, service, repair,
and overhaul such Aircraft (or cause the same to be done) so as to keep it in such condition as
necessary to maintain the airworthiness certificate for such Aircraft in good standing at all times
(other than during temporary periods of storage, maintenance, testing or modification or during
periods of grounding by applicable governmental authorities). (Aircraft Security Agreement,
Sections&nbsp;7.02(a), (c)&nbsp;and (e))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American will agree not to maintain, use, service, repair, overhaul or operate any Aircraft in
violation of any law, rule or regulation of any government having jurisdiction over such Aircraft,
or in violation of any airworthiness certificate, license or registration relating to such Aircraft
issued by such government, except to the extent American (or any lessee) is contesting in good
faith the validity or application of any such law, rule or regulation or airworthiness certificate,
license or registration in any manner that does not involve any material risk of sale, forfeiture
or loss of such Aircraft or impair the lien of the Aircraft Security Agreement with respect to such
Aircraft. (Aircraft Security Agreement, Section&nbsp;7.02(b))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American must make all alterations, modifications, and additions to each Airframe and Engine
necessary to meet the applicable requirements of the Federal Aviation Administration (the &#147;<I>FAA</I>&#148; )
or any other applicable governmental authority of another jurisdiction in which the related
Aircraft may then be registered; provided that American (or any lessee) may in good faith contest
the validity or application of any such requirement in any manner that does not involve, among
other things, a material risk of sale, forfeiture or loss of such Aircraft and does not adversely
affect the Security Agent&#146;s interest in such Aircraft under (and as defined in) the Aircraft
Security Agreement. American (or any lessee) may add further parts and make other alterations,
modifications, and additions to any Airframe or any Engine as American (or any such lessee) may
deem desirable in the proper conduct of its business, including removal (without replacement) of
parts, so long as such alterations, modifications, additions, or removals do not materially
diminish the value or utility of such Airframe or Engine below its value or utility immediately
prior to such alteration, modification, addition, or removal (assuming such Airframe or Engine was
maintained in accordance with the Aircraft Security Agreement), except that the value (but not the
utility) of any Airframe or Engine may be reduced from time to time by the value of any such parts
which have been removed that American deems obsolete or no longer suitable or appropriate for use
on such Airframe or Engine. All parts (with certain exceptions) incorporated or installed in or
added to such Airframe or Engine as a result of such alterations, modifications or additions will
be subject to the lien of the Aircraft Security Agreement. American (or any lessee) is permitted to
remove (without replacement) parts that are in addition to, and not in replacement of or
substitution for, any part originally incorporated or installed in or attached to an Airframe or
Engine at the time of delivery thereof to
American, as well as any part that is not required to be incorporated or installed in or
attached to such Airframe or Engine pursuant to applicable requirements of the FAA or other
jurisdiction in which the related Aircraft may then be registered, or any part that can be removed
without materially diminishing the requisite value or utility of such Aircraft. (Aircraft Security
Agreement, Section&nbsp;7.04(c))
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth above, American will be obligated to replace or cause to be replaced all
parts that are incorporated or installed in or attached to any Airframe or any Engine and become
worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or permanently
rendered unfit for use. Any such replacement parts will become subject to the lien of the Aircraft
Security Agreement in lieu of the part replaced. (Aircraft Security Agreement, Section&nbsp;7.04(a))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Registration, Leasing and Possession</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although American has certain re-registration rights, as described below, American generally
is required to keep each Aircraft duly registered under the Transportation Code with the FAA and to
record the Aircraft Security Agreement under the Federal Aviation Act. (Aircraft Security
Agreement, Section&nbsp;7.02(e)) In addition, American will register the &#147;international interests&#148;
created pursuant to the Aircraft Security Agreement under the Cape Town Convention on International
Interests in Mobile Equipment and the related Aircraft Equipment Protocol (the &#147;<I>Cape Town Treaty</I>&#148;).
(Aircraft Security Agreement, Section&nbsp;7.02(e)) Although American has no current intention to do so,
American will be permitted to register an Aircraft in certain jurisdictions outside the United
States, subject to certain conditions specified in the Aircraft Security Agreement. These
conditions include a requirement that the laws of the new jurisdiction of registration will give
effect to the lien of and the security interest created by the Aircraft Security Agreement in the
applicable Aircraft. (Aircraft Security Agreement, Section&nbsp;7.02(e)) American also will be
permitted, subject to certain limitations, to lease any Aircraft to any United States certificated
air carrier, to certain foreign air carriers or to certain manufacturers of airframes or engines
(or their affiliates acting under an unconditional guarantee of such manufacturer). In addition,
subject to certain limitations, American will be permitted to transfer possession of any Airframe
or any Engine other than by lease, including transfers of possession by American or any lessee in
connection with certain interchange and pooling arrangements, &#147;wet leases,&#148; and transfers in
connection with maintenance or modifications and transfers to the government of the United States,
Canada, France, Germany, Japan, The Netherlands, Sweden, Switzerland and the United Kingdom or any
instrumentality or agency thereof. (Aircraft Security Agreement, Section&nbsp;7.02(a)) There will be no
general geographical restrictions on American&#146;s (or any lessee&#146;s) ability to operate any Aircraft.
The extent to which the Security Agent&#146;s lien would be recognized in an Aircraft if such Aircraft
were located in certain countries is uncertain. Permitted foreign air carrier lessees are not
limited to those based in a country that is a party to the Convention on the International
Recognition of Rights in Aircraft (Geneva 1948) (the &#147;<I>Mortgage Convention</I>&#148;) or a party to the Cape
Town Treaty. It is uncertain to what extent the Security Agent&#146;s security interest would be
recognized if an Aircraft is registered or located in a jurisdiction not a party to the Mortgage
Convention or the Cape Town Treaty. The Cape Town Treaty provides, that, subject to certain
exceptions, a registered &#147;international interest&#148; has priority over a subsequently registered
interest and over an unregistered interest for purposes of the law of those jurisdictions that have
ratified the Cape Town Treaty. There are many jurisdictions in the world that have not ratified the
Cape Town Treaty, and an Aircraft may be located in any such jurisdiction from time to time. There
is no legal precedent with respect to the application of the Cape Town Treaty in any jurisdiction
and therefore it is unclear how the Cape Town Treaty will be applied.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, any exercise of the right to repossess an Aircraft may be difficult, expensive
and time-consuming, particularly when such Aircraft is located outside the United States or has
been registered in a foreign jurisdiction or leased to or in possession of a foreign or domestic
operator. Any such exercise would be subject to the limitations and requirements of applicable law,
including the need to obtain consents or approvals for deregistration or re-export of such
Aircraft, which may be subject to delays and political risk. When a defaulting lessee or other
permitted transferee is the subject of a bankruptcy, insolvency, or similar event such as
protective administration, additional limitations may apply. See &#147;Risk Factors &#151; Risk Factors
Relating to the Notes and the Exchange Offer &#151; Repossession of Aircraft may be difficult,
time-consuming and expensive.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, some jurisdictions may allow for other liens or other third party rights to have
priority over the Security Agent&#146;s security interest in an Aircraft. As a result, the benefits of
the Security Agent&#146;s security interest in an Aircraft may be less than they would be if such
Aircraft were located or registered in the United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon repossession of such Aircraft, the Aircraft may need to be stored and insured. The costs
of storage and insurance can be significant, and the incurrence of such costs could reduce the
proceeds available to repay the Noteholders. In addition, at the time of foreclosing on the lien on
an Aircraft under the Aircraft Security Agreement, the Airframe relating thereto subject to the
Aircraft Security Agreement might not be the equipped with the Engines
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">associated with such
Aircraft and under the Aircraft Security Agreement. If American fails to transfer title to engines
not owned by American that are attached to repossessed Aircraft, it could be difficult, expensive
and time-consuming to assemble an Aircraft consisting of an Airframe and Engines subject to the
Aircraft Security Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liens</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American is required to maintain each Aircraft free of any liens, other than the lien of the
Aircraft Security Agreement, any other rights existing pursuant to the other Operative Documents
related thereto, the rights of others in possession of such Aircraft in accordance with the terms
of the Aircraft Security Agreement and liens attributable to other parties to the Operative
Documents related thereto and other than certain other specified liens, including but not limited
to (<I>i</I>) liens for taxes either not yet overdue or being contested in good faith by appropriate
proceedings so long as such proceedings do not involve any material risk of the sale, forfeiture or
loss of the Airframe or the Engine related to such Aircraft or the Security Agent&#146;s interest
therein or impair the lien of the Aircraft Security Agreement; (<I>ii</I>) materialmen&#146;s, mechanics&#146;,
workers&#146;, landlord&#146;s, repairmen&#146;s, employees&#146; or other similar liens arising in the ordinary course
of business and securing obligations that either are not yet overdue for more than 60&nbsp;days or are
being contested in good faith by appropriate proceedings so long as such proceedings do not involve
any material risk of the sale, forfeiture or loss of the Airframe or the Engine related to such
Aircraft or the Security Agent&#146;s interest therein or impair the lien of the Aircraft Security
Agreement; (<I>iii</I>) judgment liens so long as such judgment is discharged or vacated within 60&nbsp;days or
the execution of such judgment is stayed pending appeal or such judgment is discharged, vacated or
reversed within 60&nbsp;days after expiration of such stay and so long as during any such 60&nbsp;day period
there is not, or any such judgment or award does not involve, any material risk of the sale,
forfeiture or loss of any Aircraft, any Airframe or any Engine or the interest of the Security
Agent therein or impair the lien of the Aircraft Security Agreement; (<I>iv</I>) salvage or similar rights
of insurers under insurance policies maintained by American; (<I>v</I>) any other lien as to which
American has provided a bond, cash collateral or other security adequate in the reasonable opinion
of the Security Agent; and (<I>vi</I>) Liens approved in writing by the Security Agent with the consent of
the Trustee. (Aircraft Security Agreement, Section&nbsp;7.01)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Insurance</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to certain exceptions, American is required to maintain, at its expense (or at the
expense of a lessee), all-risk aircraft hull insurance covering each Aircraft (including, without
limitation, war risk and allied perils insurance if and to the extent the same is maintained by
American (or any permitted lessee) with respect to other aircraft operated by American (or any
permitted lessee) on same or similar routes), at all times in an amount not less than 110% of the
Allocable Portion of the Notes relating to such Aircraft. However, after giving effect to
self-insurance permitted as described below, the amount payable under such insurance may be less
than such amounts payable with respect to such Allocable Portion. If an Aircraft suffers an Event
of Loss, insurance proceeds up to an amount equal to the Allocable Portion of the Notes relating to
such Aircraft, together with accrued but unpaid interest thereon, plus an amount equal to the
interest that will accrue on such Allocable Portion of the Notes during the period commencing on
the day following the date of payment of such insurance proceeds to the Security Agent and ending
on the loss payment date (the sum of those amounts being, the &#147;<I>Loan Amount</I>&#148; for such Aircraft) will
be paid to the Security Agent. If an Aircraft or Engine suffers loss or damage not constituting an
Event of Loss but involving insurance proceeds in excess of $12,000,000 (in the case of a Boeing
777-223ER), $8,000,000 (in the case of a Boeing 767-323ER) or $6,000,000 (in the case of a Boeing
737-823), proceeds in excess of such specified amounts up to the applicable Loan Amount will be
payable to the Security Agent, and the proceeds up to such specified amounts and proceeds in excess
of the applicable Loan Amount will be payable directly to American unless there is a continuing
Event of Default or Payment Default, in which event all insurance proceeds will be payable to the
Security Agent. So long as the loss does not constitute an Event of Loss, insurance proceeds will
be applied to repair or replace the equipment. (Aircraft Security Agreement, Sections&nbsp;7.06(b) and
7.06(d))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, American is obligated to maintain or cause to be maintained aircraft liability
insurance at its expense (or at the expense of a lessee), including, without limitation, bodily
injury, personal injury and property
damage liability insurance (exclusive of manufacturer&#146;s product liability insurance), and
contractual liability insurance with respect to each Aircraft. Such liability insurance must be
underwritten by insurers of recognized responsibility. The amount of such liability insurance
coverage may not be less than the amount of aircraft liability insurance from time to time
applicable to similar aircraft in American&#146;s fleet on which American carries insurance
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and operated
by American on the same or similar routes on which the Aircraft is operated. (Aircraft Security
Agreement, Section&nbsp;7.06(a))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American may self-insure under a program applicable to all aircraft in its fleet, but the
amount of such self-insurance in the aggregate may not exceed for any 12-month policy year 1% of
the average aggregate insurable value (during the preceding policy year) of all aircraft on which
American carries insurance, unless an insurance broker of national standing certifies that the
standard among all other major U.S. airlines is a higher level of self-insurance, in which case
American may self-insure the Aircraft to such higher level. In addition, American may self-insure
to the extent of (<I>i</I>) any applicable deductible per occurrence that is not in excess of the amount
customarily allowed as a deductible in the industry or is required to facilitate claims handling,
or (<I>ii</I>) any applicable mandatory minimum per aircraft (or, if applicable, per annum or other
period) liability insurance or hull insurance deductibles imposed by the aircraft liability or hull
insurers. (Aircraft Security Agreement, Section&nbsp;7.06(c))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In respect of each Aircraft, American is required to name the Security Agent as an additional
insured party under the liability insurance policy required with respect to such Aircraft. In
addition, the hull and liability insurance policies will be required to provide that, in respect of
the interests of such additional insured party, the insurance shall not be invalidated or impaired
by any action or inaction of American. (Aircraft Security Agreement, Sections&nbsp;7.06(a) and 7.06(b))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Events of Loss</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Loss occurs with respect to an Airframe or the Airframe and one or more Engines
of an Aircraft, American must elect within 90&nbsp;days after such occurrence (<I>i</I>) to replace such
Airframe and any such Engines or (<I>ii</I>) to pay the Security Agent the Allocable Portion of the Notes
relating to such Aircraft together with interest accrued thereon. Depending upon American&#146;s
election, not later than the first Business Day after the 120th day following the date of
occurrence of such Event of Loss, American will (<I>i</I>) redeem the Notes in part under the Indenture by
paying to the Trustee the Allocable Portion of the Notes relating to such Aircraft, together with
accrued interest thereon, but without any premium or (<I>ii</I>) substitute an airframe (or airframe and
one or more engines, as the case may be) for the Airframe, or Airframe and Engine(s), that suffered
such Event of Loss. If American elects to replace an Airframe (or Airframe and one or more Engines,
as the case may be) that suffered such Event of Loss, it will do so with an airframe or airframe
and engines of the same model as the Airframe or Airframe and Engines to be replaced or a
comparable or improved model, and with a value and utility (without regard to hours or cycles) at
least equal to the Airframe or Airframe and Engines to be replaced, assuming that such Airframe and
such Engines were in the condition and repair required by the Aircraft Security Agreement. American
is also required to provide to the Security Agent opinions of counsel (<I>i</I>) to the effect that
Security Agent will be entitled to the benefits of Section&nbsp;1110 with respect to the replacement
airframe (unless, as a result of a change in law or governmental or judicial interpretation, such
benefits were not available with respect to the Aircraft that suffered the Event of Loss
immediately prior to such replacement), and (<I>ii</I>) as to the due registration of the replacement
aircraft, the due recordation of a supplement to the Aircraft Security Agreement relating to such
replacement aircraft, the registration of such replacement airframe with the International Registry
under the Cape Town Treaty, if applicable, and the validity and perfection of the security interest
granted to the Security Agent in the replacement aircraft. If American elects not to replace such
Airframe, or Airframe and Engine(s), then upon payment of the Allocable Portion of the Notes issued
with respect to the related Aircraft, together with accrued but unpaid interest thereon (but
without any premium), the lien of the Aircraft Security Agreement will terminate with respect to
such Aircraft, and the obligation of American thereafter to make the scheduled interest and
principal payments with respect to such Allocable Portion of the Notes will cease. The payments
made under the Aircraft Security Agreement by American will be deposited with the Security Agent.
Amounts in excess of the amounts due and owing under the Allocable Portion of the Notes issued with
respect to such Aircraft will be distributed by the Security Agent to American. (Indenture,
Sections&nbsp;2.19(c) and 3.02; Aircraft Security Agreement, Sections&nbsp;7.05(a) and 7.05(c))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Loss occurs with respect to an Engine alone, American will be required to
replace such Engine within 120&nbsp;days after the occurrence of such Event of Loss with another engine,
free and clear of all liens
(other than certain permitted liens). Such replacement engine will be the same model as the
Engine to be replaced, or a comparable or improved model of the same or another manufacturer,
suitable for installation and use on the related Airframe, and will have a value and utility
(without regard to hours or cycles) at least equal to the Engine to
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">be replaced, assuming that such
Engine was in the condition and repair required by the terms of the Aircraft Security Agreement.
(Aircraft Security Agreement, Section&nbsp;7.05(b))
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An &#147;<I>Event of Loss</I>&#148; with respect to any Aircraft, any Airframe or any Engine means any of the
following events with respect to such property:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the loss of such property or of the use thereof due to destruction, damage to such
property beyond repair or rendition of such property permanently unfit for normal use
for any reason whatsoever;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any damage to such property that results in an insurance settlement with respect to
such property on the basis of a total loss or a compromised or constructive total loss;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the theft, hijacking or disappearance of such property for a period exceeding 180
consecutive days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the requisition for use of such property by any government (other than a requisition
for use by the government of Canada, France, Germany, Japan, The Netherlands, Sweden,
Switzerland, the United Kingdom or the United States or the government of the country
of registry of the related Aircraft) that results in the loss of possession of such
property by American (or any lessee) for a period exceeding 12 consecutive months;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the operation or location of such Aircraft, while under requisition for use by any
government, in any area excluded from coverage by any insurance policy in effect with
respect to such Aircraft required by the terms of the Aircraft Security Agreement,
unless American has obtained indemnity or insurance in lieu thereof from such
government;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any requisition of title or other compulsory acquisition, capture, seizure,
deprivation, confiscation or detention (excluding requisition for use not involving a
requisition of title) for any reason of such Aircraft, Airframe, or Engine by any
government that results in the loss of title or use of such Aircraft, Airframe or
Engine by American (or a permitted lessee) for a period in excess of 180 consecutive
days;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as a result of any law, rule, regulation, order or other action by the FAA or other
government of the country of registry, the use of such Aircraft or Airframe in the
normal business of air transportation is prohibited by virtue of a condition affecting
all aircraft of the same type for a period of 18 consecutive months, unless American is
diligently carrying forward all steps that are necessary or desirable to permit the
normal use of such Aircraft or Airframe or, in any event, if such use is prohibited for
a period of three consecutive years; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to an Engine only, any divestiture of title to or interest in such
Engine or, in certain circumstances, the installation of such Engine on an airframe
that is subject to a conditional sale or other security agreement or the requisition
for use of by any government of such Engine not then installed on an Airframe.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An Event of Loss with respect to an Aircraft is deemed to have occurred if an Event of Loss
occurs with respect to the Airframe that is a part of such Aircraft unless American elects to
substitute a replacement Airframe pursuant to the Aircraft Security Agreement. (Aircraft Security
Agreement, Annex A)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, at any time before the Scheduled Maturity Date, the Allocable Portion of the Notes with
respect to an Aircraft are repaid in full in the case of an Event of Loss with respect to such
Aircraft, the lien on such Aircraft under the Aircraft Security Agreement will be released, and
such Aircraft will not thereafter secure any Notes.
</DIV>


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<DIV align="left">
<A name="145"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Governing Law</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indenture and the Notes are, and, the Aircraft Security Agreement will be, governed by the
laws of the State of New York. (Indenture, Section&nbsp;13.17; Aircraft Security Agreement, Section
10.15)
</DIV>

<DIV align="left">
<A name="146"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Trustee and Security Agent</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Bank Trust National Association is the Trustee and will be the Security Agent. Except as
otherwise provided in the Indenture and the Aircraft Security Agreement, neither the Trustee nor
the Security Agent, in its individual capacity, is or will be answerable or accountable under the
Indenture, the Aircraft Security Agreement or under the Notes under any circumstances except, among
other things, for its own willful misconduct or negligence. American and its affiliates have in
the past, and may from time to time in the future enter into, banking and trustee relationships
with the Trustee, the Security Agent and their respective affiliates. The address for the Trustee
and the Security Agent is U.S. Bank Trust National Association, One Federal Street, 3rd Floor, Mail
Code EX-FED-MA, Boston, Massachusetts 02110, Attention: Corporate Trust Services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee may resign at any time, and may be removed by American under certain
circumstances. In such cases, a successor Trustee will be appointed by American as provided in the
Indenture. The Security Agent may resign at any time, and may be removed by American under certain
circumstances. In such cases, a successor Security Agent will be appointed by American as provided
in the Aircraft Security Agreement. The holders of a majority of the principal amount of the
outstanding Notes may at any time remove the Trustee or cause the Trustee to remove the Security
Agent as provided in the Indenture or the Aircraft Security Agreement, respectively, in which event
a successor Trustee or Security Agent may be appointed by such holders with the consent of American
as provided in the Indenture or the Aircraft Security Agreement, respectively. Any resignation or
removal of the Trustee or the Security Agent and appointment of a successor Trustee or Security
Agent does not become effective until acceptance of the appointment by such successor Trustee or
Security Agent. (Indenture, Section&nbsp;5.09; Aircraft Security Agreement, Section&nbsp;8.01)
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->57<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="147"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>DESCRIPTION OF THE AIRCRAFT AND THE APPRAISALS</B>
</DIV>

<DIV align="left">
<A name="148"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Aircraft</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On and subject to the terms and conditions of the Indenture, American has agreed to subject
the Aircraft to the lien of the Aircraft Security Agreement following the 1999-1 Maturity Date and
on or prior to the Cut-Off Date. The pool of Aircraft consists of nine Boeing 737-823 aircraft,
one Boeing 767-323ER aircraft and two Boeing 777-223ER aircraft, each of which was delivered new to
American during the period from May&nbsp;1999 to September&nbsp;1999. The airframe constituting part of an
Aircraft is referred to herein as an &#147;<I>Airframe</I>,&#148; and each engine constituting part of an Aircraft
is referred to herein as an &#147;<I>Engine</I>.&#148; Each Aircraft is being operated by American. The Aircraft
have been designed to comply with Stage 3 noise level standards, which are the most restrictive
regulatory standards currently in effect in the United States with respect to the Aircraft for
aircraft noise abatement. The &#147;ER&#148; designation is provided by the manufacturer and is not
recognized by the FAA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Boeing 737-823 is a narrow-body commercial jet aircraft. Seating capacity in American&#146;s
two-class configuration for the Boeing 737-823 aircraft to be subjected to the lien of the Aircraft
Security Agreement is 148 seats. The Boeing 737-823 is powered by two CFM56-7B26 model commercial
jet engines manufactured by CFM International, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Boeing 767-323ER and the Boeing 777-223ER are both wide-body commercial jet aircraft.
Seating capacity in American&#146;s two-class configuration for the Boeing 767-323ER is 225 seats and
American&#146;s three-class configuration for the Boeing 777-223ER is 247 seats. The Boeing 767-323ER
is powered by two CF6-80C2B6 model commercial jet engines manufactured by The General Electric
Company. The Boeing 777-223ER is powered by two RB211-TRENT-892 model commercial jet engines
manufactured by Rolls-Royce plc.
</DIV>

<DIV align="left">
<A name="149"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>The Appraisals</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the appraised values of the Aircraft that are expected to be
financed with the proceeds from the sale of the Old Notes, as determined by Aircraft Information
Services, Inc. (&#147;<I>AISI</I>&#148;), BK Associates, Inc. (&#147;<I>BK</I>&#148;) and Morten Beyer &#038; Agnew, Inc. (&#147;<I>MBA</I>,&#148; and
together with AISI and BK, the &#147;<I>Appraisers</I>&#148;), independent aircraft appraisal and consulting firms,
and certain additional information regarding such Aircraft. The references to AISI, BK and MBA,
and to their respective appraisal reports, are included herein in reliance upon the authority of
each such firm as an expert with respect to the matters contained in its appraisal report.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Registration</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Manufacturer&#146;s</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000"><B>Appraiser&#146;s Valuations</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Appraised</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Aircraft Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Serial Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Delivery Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>AISI</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>BK</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>MBA</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Value</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N909AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29511</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">5/19/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">27,600,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">26,260,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">26,260,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N910AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29512</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">5/26/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27,600,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,260,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,260,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N912AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29513</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6/25/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27,600,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,390,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,390,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N914AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29515</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/19/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27,600,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,520,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,520,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N915AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29516</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/28/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27,600,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,520,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,520,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N916AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29517</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8/6/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28,200,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,640,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N917AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29518</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8/27/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28,200,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,640,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N918AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29519</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">9/10/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28,200,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,770,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,770,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N919AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29520</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">9/15/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25,640,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28,200,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,770,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,770,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 767-323ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N399AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29606</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">5/28/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36,570,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41,800,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42,080,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40,150,000</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 777-223ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N778AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29587</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6/21/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73,460,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">76,200,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69,810,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73,156,667</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Boeing 777-223ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N779AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29955</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6/27/1999</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73,460,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">76,200,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69,810,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">73,156,667</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">414,250,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">445,000,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">420,470,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$</TD>
    <TD align="right" valign="top">425,233,333</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>The appraised value of each Aircraft set forth above is the lesser of the average and median
appraised value of each such Aircraft. Such appraisals indicate current market value of such
Aircraft as appraised by the Appraisers at or around the time of such appraisals.</TD>
</TR>

</TABLE>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According to the International Society of Transport Aircraft Trading, appraised &#147;current
market value&#148; is defined as each Appraiser&#146;s opinion of the most likely trading price that may be
generated for an aircraft under the market circumstances that are perceived to exist at the time in
question. The current market value assumes that the aircraft is valued for its highest, best use,
that the parties to the sale transaction are willing, able, prudent and knowledgeable, and under no
unusual pressure for a prompt sale, and that the transaction would be negotiated in an
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">open and unrestricted market on an arms&#146;-length basis for cash or equivalent consideration,
and given an adequate amount of time for effective exposure to prospective buyers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the offering of the Old Notes, each Appraiser was asked to provide, and
each Appraiser furnished, its opinion as to the appraised value of each Aircraft based on appraised
current market value of such Aircraft at or about the time of the appraisal. As part of this
process, all three Appraisers performed &#147;desk-top&#148; appraisals without any physical inspection of
the Aircraft. The appraisals are based on various significant assumptions and methodologies which
vary among the appraisals. The appraisals may not reflect accurately the current market value of
the Aircraft. Appraisals that are based on different assumptions and methodologies (or a physical
inspection of the Aircraft) may result in valuations that are materially different from those
contained in the appraisals. The appraisals have not been updated in connection with this exchange
offer, and the results of the appraisals if conducted immediately prior to the date hereof could
differ from the appraisals delivered in connection with the offering of the Old Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Appraisers have delivered letters setting forth their respective appraisals in connection
with the offering of the Old Notes, copies of which are annexed to this prospectus as Appendix&nbsp;II.
For a discussion of the assumptions and methodologies used in each of the appraisals, please refer
to such letters.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An appraisal is only an estimate of value. It does not necessarily indicate the price at
which an aircraft may be purchased or sold in the market. In particular, the appraisals of the
Aircraft are estimates of the values of the Aircraft assuming the Aircraft are in a certain
condition, which may not be the case. An appraisal should not be relied upon as a measure of
realizable value. The proceeds realized upon the exercise of remedies with respect to any
Aircraft, including a sale of such Aircraft, may be less than its appraised value. The value of an
Aircraft if remedies are exercised under the Indenture will depend on various factors, including
market, economic and airline industry conditions; the supply of similar aircraft; the availability
of buyers; the condition of such Aircraft; the time period in which such Aircraft is sought to be
sold; and whether such Aircraft is sold separately or as part of a block.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the Terrorist Attacks, the airline industry has suffered substantial losses. In
response to adverse market conditions, we and many other U.S. air carriers have reduced the number
of aircraft in operation, and there may be further reductions, particularly by air carriers in
bankruptcy or liquidation. Any such reduction of aircraft of the same models as the Aircraft could
adversely affect the value of the Aircraft.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, we cannot assure you that the proceeds realized upon any exercise of remedies
with respect to the Aircraft would be sufficient to satisfy in full payments due on the Notes. See
&#147;Risk Factors &#151; Risk Factors Relating to the Notes and the Exchange Offer &#151; Appraisals should not
be relied upon as a measure of realizable value of the Aircraft.&#148;
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="150"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXCHANGE OFFER; REGISTRATION RIGHTS; RATINGS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following summary describes certain material terms of the Registration Rights Agreement.
The summary does not purport to be complete and is qualified in its entirety by reference to all of
the provisions of the Registration Rights Agreement, a copy of which is filed as an exhibit to the
registration statement of which this prospectus constitutes a part.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American has undertaken the exchange offer pursuant to the terms of the Registration Rights
Agreement. The consummation of the exchange offer is not conditioned upon any minimum or maximum
aggregate principal amount of Old Notes being tendered for exchange. American entered into the
Registration Rights Agreement with the Initial Purchasers concurrently with the issuance of the Old
Notes, pursuant to which American has agreed, for the benefit of and at no cost to the Noteholders,
to use its reasonable best efforts to: (i)&nbsp;file with the SEC a registration statement with respect
to the offer to exchange the Old Notes for the New Notes, which will have terms identical in all
material respects to the Old Notes, to the holders of such Old Notes entitled to make such
exchange, except that the New Notes:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are registered under the Securities Act and will not be subject to restrictions on
transfer;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will bear a different CUSIP and ISIN number than the Old Notes;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will not entitle their holders to registration rights; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>will be subject to terms relating to book-entry procedures and administrative terms
relating to transfers that differ from those of the Old Notes,</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(ii)&nbsp;cause the registration statement to be declared effective under the Securities Act, (iii)
offer the New Notes in exchange for surrender of the Old Notes and (iv)&nbsp;consummate the exchange
offer on or before December&nbsp;31, 2009. American will keep the exchange offer open for not less than
20 business days after the date notice of the exchange offer is mailed to the Noteholders. For each
Old Note validly tendered to the Trustee pursuant to the exchange offer and not withdrawn by the
holder thereof, the holder of such Old Note will receive a New Note having a principal amount equal
to that of such tendered Old Note. Interest on each New Note will accrue from the last Payment Date
on which interest was paid on the tendered Old Note in exchange thereof or, if no interest has been
paid on such Old Notes, from the Issuance Date. As part of the terms of the exchange offer, Old
Notes accepted for exchange will not accrue interest for any period from and after the last
interest payment date on which interest was paid or duly provided for on such Old Notes prior to
the Issuance Date of the New Notes or, if no such interest has been paid or duly provided for on
such Old Notes, will not accrue any interest.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of Old Notes who do not tender their Old Notes in the exchange offer will not have any
further registration rights under the Registration Rights Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under existing interpretations of the staff of the SEC contained in several no action letters
to third parties, the New Notes will in general be freely transferable by holders thereof (other
than affiliates of American) after the exchange offer without further registration under the
Securities Act (subject to certain representations required to be made by each holder of Old Notes
participating in the exchange offer, as set forth below). However, any purchaser of Old Notes who
is an &#147;affiliate&#148; of American or who intends to participate in the exchange offer for the purpose
of distributing the New Notes (1)&nbsp;will not be able to rely on such SEC interpretations, (2)&nbsp;will
not be able to tender its Old Notes in the exchange offer and (3)&nbsp;must comply with the registration
and prospectus delivery requirements of the Securities Act in connection with any sale or transfer
of Old Notes unless such sale or transfer is made pursuant to an exemption from such requirements.
In addition, in connection with any resales of New Notes, an exchanging dealer receiving New Notes
in the exchange offer will be subject to a prospectus delivery requirement with respect to resales
of those New Notes. The SEC has taken the position that exchanging dealers may fulfill their
prospectus delivery requirements with respect to the New Notes (other than a resale of an unsold
allotment from the original sale of the Old Notes) by delivery of the prospectus contained in the
registration statement of which this prospectus constitutes a part. Under the Registration Rights
Agreement, we are required to allow exchanging dealers to use the
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">prospectus contained in the exchange offer registration statement in connection with the
resale of such New Notes for a period of 90&nbsp;days after the consummation of the exchange offer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any changes in law or the applicable interpretations of the staff of the SEC do not permit
American to effect the exchange offer, American will, in lieu of effecting the registration of the
New Notes pursuant to the registration statement and at no cost to the Noteholders, (a)&nbsp;as promptly
as practicable, file with the SEC a shelf registration statement covering resales of the Notes (the
"<I>Shelf Registration Statement</I>&#148;), (b)&nbsp;use its reasonable best efforts to cause the Shelf
Registration Statement to be declared effective under the Securities Act on or before December&nbsp;31,
2009 and (c)&nbsp;use its reasonable best efforts to keep effective the Shelf Registration Statement for
a period of one year after its effective date (or for such shorter period as shall end when all of
the Notes covered by the Shelf Registration Statement have been sold pursuant thereto). American
will, in the event of the filing of a Shelf Registration Statement, provide to each registered
holder of the Notes copies of the prospectus which is a part of the Shelf Registration Statement,
notify each such registered holder when the Shelf Registration Statement for the Notes has become
effective and take certain other actions as are required to permit unrestricted resales of the
Notes. A Noteholder who sells Notes pursuant to the Shelf Registration Statement generally will be
required to be named as a selling securityholder in the related prospectus and to deliver the
prospectus to purchasers, will be subject to certain of the civil liability provisions under the
Securities Act in connection with such sales and will be bound by the provisions of the
Registration Rights Agreement which are applicable to such a Noteholder (including certain
indemnification obligations). In addition, each Noteholder will be required to deliver information
to be used in connection with the Shelf Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, pursuant to the Registration Rights Agreement, American has agreed, for the
benefit of and at no cost to the Noteholders, to use its reasonable best efforts to obtain ratings
for the Notes from each of Moody&#146;s and Standard &#038; Poor&#146;s on or before December&nbsp;31, 2009. See &#147;Risk
Factors &#151; Risk Factors Relating to the Notes and the Exchange Offer &#151; The Notes are not currently
rated, and any rating of the Notes, if obtained, may be lowered or withdrawn in the future.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If (a)&nbsp;neither the consummation of the exchange offer nor the declaration by the SEC of a
Shelf Registration Statement to be effective with respect to the Notes occurs on or before December
31, 2009, or (b)&nbsp;the Notes are not rated by Moody&#146;s and Standard &#038; Poor&#146;s on or before December&nbsp;31,
2009, then the interest rate per annum borne by the Notes shall be increased permanently by 1.00%
from and including January&nbsp;1, 2010. If a Shelf Registration Statement, if filed and declared
effective on or before December&nbsp;31, 2009, ceases to be effective at any time during the one year
period specified by the Registration Rights Agreement for more than 60&nbsp;days, whether or not
consecutive, the interest rate per annum borne by the Notes shall be increased by 1.00% from the
61st day until such time as the Shelf Registration Statement again becomes effective.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The maximum possible increase in the interest rate per annum borne by the Notes and the
Exchange Notes in connection with the circumstances set forth in the preceding paragraph is 1.00%.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="151"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a discussion of certain U.S. federal income tax considerations relating to
the exchange of Old Notes for New Notes pursuant to the exchange offer and the ownership and
disposition of New Notes by Holders (as defined below) that receive New Notes pursuant to the
exchange offer and hold such Notes as capital assets. This discussion is based on the U.S.
Internal Revenue Code of 1986, as amended (the &#147;<I>Code</I>&#148;), U.S. Treasury regulations promulgated or
proposed thereunder and administrative and judicial interpretations thereof, all as in effect on
the date hereof, and all of which are subject to change, possibly with retroactive effect, or to
different interpretation. This discussion does not address all of the U.S. federal income tax
considerations that may be relevant to specific Holders in light of their particular circumstances
or to Holders subject to special treatment under U.S. federal income tax law (such as banks,
insurance companies, dealers in securities or other persons that generally mark their securities to
market for U.S. federal income tax purposes, tax-exempt entities, retirement plans, regulated
investment companies, real estate investment trusts, certain former citizens or residents of the
United States, persons who hold the Notes as part of a straddle, hedge, conversion or other
integrated transaction or U.S. Holders (as defined below) that have a &#147;functional currency&#148; other
than the U.S. dollar). This discussion does not address any U.S. state or local or non-U.S. tax
considerations or any U.S. federal estate, gift or alternative minimum tax considerations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this discussion:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<I>U.S. Holder</I>&#148; means a beneficial owner of a Note that is, for U.S. federal income
tax purposes, (<I>i</I>) an individual who is a citizen or resident of the United States,
(<I>ii</I>) a corporation created or organized in or under the laws of the United States, any
state thereof or the District of Columbia, (<I>iii</I>) an estate the income of which is
subject to U.S. federal income tax regardless of its source or (<I>iv</I>) a trust (<I>x</I>) with
respect to which a court within the United States is able to exercise primary
supervision over its administration and one or more United States persons have the
authority to control all of its substantial decisions or (<I>y</I>) that has in effect a valid
election under applicable U.S. Treasury regulations to be treated as a United States
person;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<I>Non-U.S. Holder</I>&#148; means a beneficial owner of a Note that is neither a U.S. Holder
nor a partnership for U.S. federal income tax purposes; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<I>Holder</I>&#148; means a U.S. Holder or a Non-U.S. Holder.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an entity treated as a partnership for U.S. federal income tax purposes holds a Note, the
U.S. federal income tax treatment of the entity and its partners generally will depend upon the
status and activities of the entity and its partners. An investor that is treated as a partnership
for U.S. federal income tax purposes should consult its own tax advisor regarding the U.S. federal
income tax considerations relating to the Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE U.S. FEDERAL, STATE AND LOCAL, AND
NON-U.S., INCOME, ESTATE AND OTHER TAX CONSIDERATIONS RELATING TO THE EXCHANGE OF OLD NOTES FOR NEW
NOTES PURSUANT TO THE EXCHANGE OFFER AND THE OWNERSHIP AND DISPOSITION OF NEW NOTES IN LIGHT OF
THEIR PARTICULAR CIRCUMSTANCES.
</DIV>

<DIV align="left">
<A name="152"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exchange of Old Notes for New Notes</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exchange of Old Notes for New Notes pursuant to the exchange offer will not be treated as
a taxable event for U.S. federal income tax purposes. New Notes received in the exchange offer will
be treated for U.S. federal income tax purposes as a continuation of the original investment of the
Holder in the Old Notes exchanged therefor. In particular, no gain or loss will be recognized by
Holders as a result of the exchange offer and, for purposes of determining gain or loss on a
subsequent sale of New Notes, a Holder&#146;s tax basis and holding period for the New Notes will be the
same as the tax basis and holding period for the Old Notes exchanged therefor. Similarly, there
would be no U.S. federal income tax consequences to a Holder that does not participate in the
exchange offer.
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="153"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Certain Additional Payments</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes provide for the payment of additional interest by American in certain circumstances
in the event of a failure to meet certain targets regarding registration of the Notes or to obtain
ratings for the Notes, as described above under the heading &#147;Exchange Offer; Registration Rights;
Ratings&#148;.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury regulations provide special rules for contingent payment debt instruments which,
if applicable, could cause the timing, amount and character of a Holder&#146;s income, gain or loss with
respect to the Notes to be different from the consequences discussed below. For purposes of
determining whether a debt instrument is a contingent payment debt instrument, remote or incidental
contingencies are ignored. American intends to treat the possibility of its making any such
payment of additional interest on the Notes as remote or to treat such payments as incidental.
Accordingly, American does not intend to treat the Notes as contingent payment debt instruments.
American&#146;s treatment will be binding on all Holders, except a Holder that discloses its differing
treatment in a statement attached to its timely filed U.S. federal income tax return for the
taxable year during which the Note was acquired. However, American&#146;s treatment is not binding on
the U.S. Internal Revenue Service (the &#147;<I>IRS</I>&#148;). If the IRS were to challenge American&#146;s treatment,
Holders might be required to accrue interest income on the Notes, in excess of stated interest, and
to treat as interest income, rather than capital gain, any gain recognized on the disposition of
the Notes before the resolution of the contingencies. In any event, if American actually makes any
payment of additional interest described above, the timing and amount (and possibly character) of a
Holder&#146;s income, gain or loss with respect to the Notes may be affected. The remainder of this
discussion assumes that the Notes have not been and will not be contingent payment debt
instruments.
</DIV>

<DIV align="left">
<A name="154"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>U.S. Holders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Interest</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, interest payable on the Notes will be taxable to a U.S. Holder as ordinary
interest income when it is received or accrued, in accordance with such U.S. Holder&#146;s method of
accounting for U.S. federal income tax purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Bond Premium</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, if a U.S. Holder&#146;s tax basis (generally, a U.S. Holder&#146;s cost) in a Note exceeded
the sum of all amounts then payable on such Note through the maturity date (other than payments of
stated interest), such U.S. Holder is deemed to have acquired such Note with &#147;bond premium&#148; in the
amount of such excess. In such event, the U.S. Holder generally may elect to amortize the &#147;bond
premium&#148; as an offset to any stated interest over the period from the U.S. Holder&#146;s acquisition
date to such Note&#146;s maturity date. A U.S. Holder that elects to amortize &#147;bond premium&#148; must reduce
its tax basis in the related Note by the amount of the &#147;bond premium&#148; used to offset interest
income. Any election to amortize &#147;bond premium&#148; applies to all debt instruments (other than debt
instruments the interest on which is excludible from gross income) held by the U.S. Holder during
the first taxable year to which the election applies or thereafter acquired by the U.S. Holder. The
election may not be revoked without the consent of the IRS. It is unclear how these rules apply
when there is more than one possible call date and the amount of any redemption premium is
uncertain. U.S. Holders should consult their own tax advisors regarding the election to amortize
bond premium.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Market Discount</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a U.S. Holder acquired a Note for an amount less than the sum of all amounts payable on
such Note after the acquisition date (other than payments of stated interest), then the difference
constitutes &#147;market discount&#148; for U.S. federal income tax purposes, unless such difference is less
than a statutorily defined <I>de minimis </I>amount. Under the &#147;market discount&#148; rules, a U.S. Holder is
generally required to treat as ordinary income any principal payment on, or any gain on the sale,
redemption, retirement or other disposition of, a Note to the extent of any accrued market
discount. In addition, the U.S. Holder may be required to defer, until the maturity of a Note or
its earlier disposition, the deduction of all or a portion of the interest expense on any
indebtedness incurred or continued to purchase or
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">carry such Note. Market discount accrues ratably during the period from the date of
acquisition to the maturity of a Note, unless the U.S. Holder elects to accrue it under the
constant yield method.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A U.S. Holder may elect to include market discount in income currently as it accrues (either
ratably or under the constant yield method), in which case the rules described above will not apply
to the Note. The election to include market discount currently applies to all market discount
obligations acquired during or after the first taxable year to which the election applies and may
not be revoked without the consent of the IRS.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Sale, Retirement or Other Taxable Disposition of the Notes</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the sale, retirement or other taxable disposition of a Note, a U.S. Holder generally will
recognize gain or loss in an amount equal to the difference between the amount realized on such
sale, retirement or disposition (other than any amount attributable to accrued interest not
previously included in such U.S. Holder&#146;s income, which will be taxable as ordinary income to such
U.S. Holder) and such U.S. Holder&#146;s adjusted tax basis in such Note. A U.S. Holder&#146;s adjusted tax
basis in a Note generally will be its cost for such Note, increased by any market discount
previously included in income by such U.S. Holder and reduced by any prior cash payments (other
than payments of stated interest) on such Note made to such U.S. Holder and by any bond premium
that has been used to offset interest income. Subject to the &#147;market discount&#148; rules described
above, any gain or loss so recognized generally will be capital gain or loss and will be long-term
capital gain or loss if such U.S. Holder has held the Note for more than one year at the time of
such sale, retirement or disposition. Net long-term capital gain of certain non-corporate U.S.
Holders is generally subject to preferential rates of tax. The deductibility of capital losses is
subject to limitations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Information Reporting and Backup Withholding</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information reporting generally will apply to a U.S. Holder with respect to payments of
interest on, or proceeds from the sale, retirement or other disposition of, a Note, unless such
U.S. Holder is a corporation or other entity that is exempt from information reporting and, when
required, demonstrates this fact. Any such payments or proceeds to a U.S. Holder that are subject
to information reporting generally will also be subject to backup withholding, unless such U.S.
Holder provides the appropriate documentation (generally, IRS Form W-9) to the applicable
withholding agent certifying that, among other things, its taxpayer identification number is
correct and it is a United States person, or otherwise establishes an exemption.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup withholding is not an additional tax. Any amounts withheld under the backup
withholding rules generally will be allowed as a refund or a credit against a U.S. Holder&#146;s U.S.
federal income tax liability, <I>provided </I>that the required information is furnished by the U.S.
Holder on a timely basis to the IRS.
</DIV>

<DIV align="left">
<A name="155"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Non-U.S. Holders</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the discussion below concerning backup withholding:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(<I>a</I>) payments of principal, interest and premium with respect to a Note owned by a
Non-U.S. Holder generally will not be subject to U.S. federal withholding tax; <I>provided</I>
that, in the case of payments treated as interest, (<I>i</I>) such payments are not effectively
connected with the conduct of a trade or business in the United States by such Non-U.S.
Holder; (<I>ii</I>) such Non-U.S. Holder does not own, actually or constructively, 10% or more of
the total combined voting power of all classes of our stock entitled to vote; (<I>iii</I>) such
Non-U.S. Holder is not a controlled foreign corporation described in section 957(a) of the
Code that is related to us through stock ownership; (<I>iv</I>) such Non-U.S. Holder is not a bank
whose receipt of interest on the Note is described in section 881(c)(3)(A) of the Code; and
(<I>v</I>) the certification requirements described below are satisfied; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(<I>b</I>) a Non-U.S. Holder generally will not be subject to U.S. federal income or
withholding tax on any gain realized on the sale, retirement or other disposition of a Note
(other than amounts treated as interest), unless (<I>i</I>) such gain is effectively connected with
the conduct of a trade or business in the United States by such Non-U.S. Holder or (<I>ii</I>) such
Non-U.S. Holder is an individual who is present in the United
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 5%">States for 183&nbsp;days or more in the taxable year of such sale, retirement or disposition
and certain other conditions are met (in each case, subject to the provisions of an
applicable tax treaty).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The certification requirements referred to in clause (<I>a</I>)(<I>v</I>) above generally will be satisfied
if the Non-U.S. Holder provides the applicable withholding agent with a statement on IRS Form
W-8BEN (or suitable substitute form), signed under penalties of perjury, stating, among other
things, that such Non-U.S. Holder is not a United States person. U.S. Treasury regulations provide
additional rules for a Note held through one or more intermediaries or pass-through entities.
President Obama has recently proposed changes to these certification requirements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the requirements set forth in clause (<I>a</I>) above are not satisfied with respect to a Non-U.S.
Holder, payments on the Notes treated as interest generally will be subject to U.S. federal
withholding tax at a rate of 30%, unless another exemption is applicable. For example, an
applicable tax treaty may reduce or eliminate such withholding tax, <I>provided </I>that such Non-U.S.
Holder has provided the appropriate documentation (generally, IRS Form W-8BEN) to the applicable
withholding agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Non-U.S. Holder is engaged in the conduct of a trade or business in the United States,
and if amounts treated as interest on the Notes or as gain realized on the sale, retirement or
other disposition of the Notes are effectively connected with such trade or business, such Non-U.S.
Holder generally will not be subject to U.S. federal withholding tax on such amounts, <I>provided</I>
that, in the case of amounts treated as interest, such Non-U.S. Holder has provided the appropriate
documentation (generally, IRS Form W-8ECI) to the applicable withholding agent. Instead, such
Non-U.S. Holder generally will be subject to U.S. federal income tax in substantially the same
manner as a U.S. Holder (except as provided by an applicable tax treaty). In addition, a Non-U.S.
Holder that is a corporation may be subject to a branch profits tax equal to 30% of its effectively
connected income for the taxable year, subject to certain adjustments (or a lower rate if provided
by an applicable tax treaty).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Information Reporting and Backup Withholding</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, payments of amounts treated as interest on a Note to a Non-U.S. Holder, and the
amount of any tax withheld from such payments, must be reported annually to the IRS and to such
Non-U.S. Holder. The IRS may make this information available to the tax authorities of the country
in which such Non-U.S. Holder is a resident under the provisions of an applicable tax treaty or
agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information reporting and backup withholding rules that apply to payments of interest to a
U.S. Holder generally will not apply to payments of interest on a Note to a Non-U.S. Holder if such
Non-U.S. Holder certifies under penalties of perjury that it is not a United States person
(generally by providing an IRS Form W-8BEN) or otherwise establishes an exemption.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale, retirement or other disposition of a Note by a Non-U.S. Holder
effected through a non-U.S. office of a U.S. broker or of a non-U.S. broker with certain specified
U.S. connections generally will be subject to information reporting, but not backup withholding,
unless such Non-U.S. Holder certifies under penalties of perjury that it is not a United States
person (generally by providing an IRS Form W-8BEN) or otherwise establishes an exemption. Proceeds
from the sale, retirement or other disposition of a Note by a Non-U.S. Holder effected through a
U.S. office of a broker generally will be subject to information reporting and backup withholding,
unless such Non-U.S. Holder certifies under penalties of perjury that it is not a United States
person (generally by providing an IRS Form W-8BEN) or otherwise establishes an exemption.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Backup withholding is not an additional tax. Any amounts withheld under the backup
withholding rules generally will be allowed as a refund or a credit against a Non-U.S. Holder&#146;s
U.S. federal income tax liability, <I>provided </I>that the required information is furnished by such
Non-U.S. Holder on a timely basis to the IRS.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="156"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CERTAIN ERISA CONSIDERATIONS</B>
</DIV>

<DIV align="left">
<A name="157"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>General</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Employee Retirement Income Security Act of 1974, as amended (&#147;<I>ERISA</I>&#148;), imposes certain
requirements on employee benefit plans subject to Title I of ERISA and on entities that are deemed
to hold the assets of such plans (&#147;<I>ERISA Plans</I>&#148;), and on those persons who are fiduciaries with
respect to ERISA Plans. Investments by ERISA Plans are subject to ERISA&#146;s general fiduciary
requirements, including, but not limited to, the requirement of investment prudence and
diversification and the requirement that an ERISA Plan&#146;s investments be made in accordance with the
documents governing the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;406 of ERISA and Section&nbsp;4975 of the Code, prohibit certain transactions involving the
assets of an ERISA Plan (as well as those plans that are not subject to ERISA but which are subject
to Section&nbsp;4975 of the Code, such as individual retirement accounts, or entities that are deemed to
hold the assets of such plans or accounts (together with ERISA Plans, &#147;<I>Plans</I>&#148;)) and certain persons
(referred to as &#147;<I>parties in interest</I>&#148; or &#147;<I>disqualified persons</I>&#148;) having certain relationships to
such Plans, unless a statutory or administrative exemption is applicable to the transaction. A
party in interest or disqualified person who engages in a prohibited transaction may be subject to
excise taxes and other penalties and liabilities under ERISA and the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Plan fiduciary which proposes to cause a Plan to exchange the Old Notes for New Notes
should consult with its counsel regarding the applicability of the fiduciary responsibility and
prohibited transaction provisions of ERISA and Section&nbsp;4975 of the Code to such an investment, and
to confirm that such exchange and holding will not constitute or result in a non-exempt prohibited
transaction or any other violation of an applicable requirement of ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign plans, governmental plans and certain church plans, while not subject to the fiduciary
responsibility provisions of ERISA or the prohibited transaction provisions of ERISA and Section
4975 of the Code, may nevertheless be subject to U.S. federal, state, local, or foreign law or
regulation that is substantially similar to the foregoing provisions of ERISA and the Code
(&#147;<I>Similar Law</I>&#148;). Fiduciaries of any such plans should consult with their counsel before exchanging
Old Notes for New Notes to determine the need for, and the availability, if necessary, of any
exemptive relief under any such laws or regulations.
</DIV>

<DIV align="left">
<A name="158"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Prohibited Transaction Exemptions</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fiduciary of a Plan that proposes to exchange Old Notes for New Notes should consider,
among other things, whether such exchange and holding may involve (<I>i</I>) the direct or indirect
extension of credit to a party in interest or a disqualified person, (<I>ii</I>) the sale or exchange of
any property between a Plan and a party in interest or a disqualified person, or (<I>iii</I>) the transfer
to, or use by or for the benefit of, a party in interest or a disqualified person, of any Plan
assets. Such parties in interest or disqualified persons could include, without limitation,
American, the Trustee, the Security Agent and their respective affiliates. Depending on the
satisfaction of certain conditions which may include the identity of the Plan fiduciary making the
decision to exchange Old Notes for New Notes on behalf of a Plan, Prohibited Transaction Class
Exemption (&#147;<I>PTCE</I>&#148;) 91-38 (relating to investments by bank collective investment funds), PTCE 84-14
(relating to transactions effected by a &#147;qualified professional asset manager&#148;), PTCE 95-60
(relating to investments by an insurance company general account), PTCE 96-23 (relating to
transactions directed by an in-house asset manager) or PTCE 90-1 (relating to investments by
insurance company pooled separate accounts) (collectively, the &#147;<I>Class&nbsp;Exemptions</I>&#148;) could provide an
exemption from the prohibited transaction provisions of ERISA and Section&nbsp;4975 of the Code.
However, there can be no assurance that any of these Class&nbsp;Exemptions or any other exemption will
be available with respect to any particular transaction involving the Notes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Each person who acquires or accepts a Note or an interest therein will be deemed by such
acquisition or acceptance to have represented and warranted that either: (</B><B><I>i</I></B><B>) no assets of (</B><B><I>a</I></B><B>) an
employee benefit plan subject to Title I of ERISA, (</B><B><I>b</I></B><B>) a plan described in Section&nbsp;4975(e)(1) of
the Code, (</B><B><I>c</I></B><B>) an entity whose underlying assets are deemed to include assets of any such employee
benefit plan or plan, or (</B><B><I>d</I></B><B>) a foreign, governmental or church plan that is subject to Similar Law
have been used to purchase such Note or any interest therein; or (</B><B><I>ii</I></B><B>) the purchase and holding of
such Note or any interest therein by such person are</B>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>exempt from the prohibited transaction restrictions of ERISA and the Code or any similar
provision of Similar Law, as applicable, pursuant to one or more prohibited transaction statutory
or administrative exemptions.</B>
</DIV>

<DIV align="left">
<A name="159"></A>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Special Considerations Applicable to Insurance Company General Accounts</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any insurance company proposing to invest assets of its general account in the Notes should
consider the implications of the United States Supreme Court&#146;s decision in <I>John Hancock Mutual Life
Insurance Co. v. Harris Trust and Savings Bank</I>, 510 U.S. 86, 114 S. Ct. 517 (1993), which in
certain circumstances treats such general account assets as assets of a Plan that owns a policy or
other contract with such insurance company, as well as the effect of Section 401(c) of ERISA as
interpreted by regulations issued by the United States Department of Labor in January, 2000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EACH PLAN FIDUCIARY (AND EACH FIDUCIARY FOR A FOREIGN, GOVERNMENTAL OR CHURCH PLAN SUBJECT TO
SIMILAR LAW) SHOULD CONSULT WITH ITS LEGAL ADVISOR CONCERNING THE POTENTIAL CONSEQUENCES TO THE
PLAN UNDER ERISA, THE CODE OR SUCH SIMILAR LAW OF AN INVESTMENT IN THE NOTES.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="160"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each broker-dealer that receives New Notes for its own account pursuant to the exchange offer
must acknowledge that it will deliver a prospectus in connection with any resale of such New Notes.
This prospectus, as it may be amended or supplemented from time to time, may be used by a
broker-dealer in connection with resales of New Notes received in exchange for Old Notes where such
Old Notes were acquired as a result of market-making activities or other trading activities. We
have agreed that, for a period of 90&nbsp;days after the Expiration Date, we will make this prospectus,
as amended or supplemented, available to any broker-dealer for use in connection with any such
resale.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We will not receive any proceeds from any sale of New Notes by broker-dealers. New Notes
received by broker-dealers for their own account pursuant to the exchange offer may be sold from
time to time in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the New Notes or a combination of such methods of
resale, at market prices prevailing at the time of resale, at prices related to such prevailing
market prices or at negotiated prices. Any such resale may be made directly to purchasers or to or
through brokers or dealers who may receive compensation in the form of commissions or concessions
from any such broker-dealer or the purchasers of any such New Notes. Any broker-dealer that resells
New Notes that were received by it for its own account pursuant to the exchange offer and any
broker or dealer that participates in a distribution of such New Notes may be deemed to be an
&#147;underwriter&#148; within the meaning of the Securities Act and any profit on any such resale of New
Notes and any commission or concessions received by any such persons may be deemed to be
underwriting compensation under the Securities Act. The letter of transmittal states that, by
acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be
deemed to admit that it is an &#147;underwriter&#148; within the meaning of the Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a period of 90&nbsp;days after the Expiration Date, we will promptly send additional copies of
this prospectus and any amendment or supplement to this prospectus to any broker-dealer that
requests such documents in the letter of transmittal. We have agreed to pay all expenses incident
to the exchange offer other than commissions or concessions of any broker-dealers and will
indemnify certain Noteholders (including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on interpretations by the staff of the SEC as set forth in no-action letters issued to
third parties (including Exxon Capital Holdings Corporation (available May&nbsp;13, 1988), Morgan
Stanley &#038; Co. Incorporated (available June&nbsp;5, 1991), K-111 Communications Corporation (available
May&nbsp;14, 1993) and Shearman &#038; Sterling (available July&nbsp;2, 1993)), we believe that the New Notes
issued pursuant to the exchange offer may be offered for resale, resold and otherwise transferred
by any holder of such New Notes, other than any such holder that is a broker-dealer or an
&#147;affiliate&#148; of us within the meaning of Rule&nbsp;405 under the Securities Act, without compliance with
the registration and prospectus delivery provisions of the Securities Act, provided that:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such New Notes are acquired in the ordinary course of business;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the time of the commencement of the exchange offer, such holder has no
arrangement or understanding with any person to participate in a distribution of such
New Notes; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such holder is not engaged in and does not intend to engage in a distribution of
such New Notes.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have not sought and do not intend to seek a no-action letter from the SEC with respect to
the effects of the exchange offer, and there can be no assurance that the staff of the SEC would
make a similar determination with respect to the New Notes as it has in such no-action letters.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->68<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="161"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>VALIDITY OF THE NEW NOTES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the New Notes is being passed upon for American by Gary F. Kennedy, Esq.,
Senior Vice President, General Counsel and Chief Compliance Officer of American.
</DIV>

<DIV align="left">
<A name="162"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated financial statements of AMR appearing in AMR&#146;s Current Report (Form 8-K)
dated April&nbsp;21, 2009 (including schedule appearing therein), the consolidated financial statements
of American appearing in American&#146;s Annual Report (Form 10-K) for the year ended December&nbsp;31, 2008
(including schedule appearing therein) have been audited by Ernst &#038; Young LLP, independent
registered public accounting firm, as set forth in their reports thereon, included therein, and
incorporated herein by reference. Such consolidated financial statements are incorporated herein
in reliance upon such reports given on the authority of such firm as experts in accounting and
auditing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The references to Aircraft Information Services, Inc., BK Associates, Inc. and Morten Beyer &#038;
Agnew, Inc., and to their respective appraisal reports, are included herein in reliance upon the
authority of each such firm as an expert with respect to the matters contained in its appraisal
report.
</DIV>

<DIV align="left">
<A name="163"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND MORE INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We and our parent company, AMR, file annual, quarterly and current reports, proxy statements
(in the case of AMR only) and other information with the SEC. You may read and copy this
information at the SEC&#146;s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You
may obtain information on the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. Our SEC filings are also available from the SEC&#146;s Internet site at
<I>http://www.sec.gov</I>, which contains reports, proxy and information statements, and other information
regarding issuers that file electronically.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus is part of a registration statement that we have filed with the SEC. This
prospectus does not contain all of the information we have included in the registration statement
and the accompanying exhibits and schedules in accordance with the rules and regulations of the
SEC, and we refer you to the omitted information. The statements this prospectus makes pertaining
to the content of any contract, agreement or other document that is an exhibit to the registration
statement necessarily are summaries of their material provisions and do not describe all exceptions
and qualifications contained in those contracts, agreements or documents. You should read those
contracts, agreements or documents for information that may be important to you. The registration
statement, exhibits and schedules are available at the SEC&#146;s Public Reference Room or through its
Internet site.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We &#147;incorporate by reference&#148; in this prospectus certain documents that we or AMR files with
the SEC, which means:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we can disclose important information to you by referring you to those documents;
and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>information incorporated by reference is considered to be part of this prospectus,
even though it is not repeated in this prospectus.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents listed below that we and AMR have previously filed with the SEC
(Commission File Numbers 001-02691 and 001-08400, respectively) are incorporated by reference
(other than reports or portions thereof furnished under Items 2.02 or 7.01 of Form 8-K):
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Filing</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date Filed</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Annual Reports on Form&nbsp;10-K of American and
AMR for the year ended December&nbsp;31, 2008
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">February&nbsp;19, 2009 (except,
in the case of AMR, for
Items 1, 1A, 6, 7, 7A and
8 and Exhibit&nbsp;12 thereto,
which have been updated in
AMR&#146;s Current Report on
Form&nbsp;8-K filed on April
21, 2009)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->69<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Filing</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date Filed</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Quarterly Reports on Form&nbsp;10-Q of American
and AMR for the quarters ended March&nbsp;31, 2009
and
June&nbsp;30, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;16, 2009<br>
July&nbsp;15, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Current Reports on Form&nbsp;8-K of American
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January&nbsp;6, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January&nbsp;15, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">February&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">February&nbsp;5, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">February&nbsp;18, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;4, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;18, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">May&nbsp;5, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;4, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;11, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;18, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;25, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;26, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;29, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">July&nbsp;6, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">July&nbsp;7, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">August&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">August&nbsp;5, 2009</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Current Reports on Form&nbsp;8-K of AMR
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January&nbsp;6, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January&nbsp;15, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">January&nbsp;23, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">February&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">February&nbsp;5, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">February&nbsp;18, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;4, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;18, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">April&nbsp;21, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">May&nbsp;5, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;4, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;11, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;18, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;25, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">June&nbsp;26, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">July&nbsp;6, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">July&nbsp;7, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">August&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">August&nbsp;5, 2009</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You can obtain any of the filings incorporated by reference in this prospectus through us or
from the SEC through the SEC&#146;s Internet site or at the address listed above. You may request
orally or in writing, without charge, a copy of any or all of the documents which are incorporated
in this prospectus by reference, other than exhibits to such documents (unless such exhibits are
specifically incorporated by reference into such documents). Requests for such copies should be
directed to American Airlines, Inc., 4333 Amon Carter Boulevard, Mail Drop 5651, Fort Worth, Texas
76155, Attention: Investor Relations (Telephone: (817)&nbsp;967-2970).
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->70<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX I</B>
</DIV>

<DIV align="left">
<A name="164"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INDEX OF TERMS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is an index showing the page in this prospectus where certain defined terms
appear.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1999-1 EETC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1999-1 Event of Loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1999-1 Indentures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1999-1 Maturity Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agent&#146;s Message</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aircraft</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aircraft Security Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Aircraft Security Event of Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Airframe</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AISI</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allocable Portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">American</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">American Bankruptcy Event</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">American Beacon Advisors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AmericanConnection<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> carrier</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">AMR</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Appraisal</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Appraisers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumed Aircraft Value</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ATC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ATOP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Average Life Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bankruptcy Code</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">BK</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Book-Entry Confirmation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Day</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cape Town Treaty</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash Collateral</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">citizen of the United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Class&nbsp;Exemptions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Clearstream</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Code</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Credit Facility</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Redemption Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation Assumption</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DTC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EBITDAR Covenant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Eligible Institution</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ERISA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ERISA Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">EU</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Euroclear</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Event of Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Event of Loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" align="right">ii</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expiration Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">FAA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Global Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">H.15(519)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Holder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indenture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">1, 36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Initial Purchasers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Appendix I-1<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->







<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">IRS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issuance Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">7, 36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Liquidity Covenant</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loan Amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LTVs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Make-Whole Amount</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Make-Whole Spread</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MBA</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Moody&#146;s</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mortgage Convention</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MSP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">New Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-U.S. Holder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Noteholders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Old Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7, 36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Operative Documents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Payment Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">PTCE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rating Agencies</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rating Condition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registration Condition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Registration Rights Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Remaining Weighted Average Life</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SARS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Scheduled Maturity Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" align="right">iii</TD>
    <TD>&nbsp;</TD>

</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Section&nbsp;1110</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" align="right">ii</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Security Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEMP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shelf Registration Statement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Similar Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">STAMP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Standard &#038; Poor&#146;s</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stated Interest Rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Terrorist Attacks</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transportation Code</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Appendix I-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Treasury Yield</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trust Indenture Act</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trustee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1, 36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">U.S. Holder</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Appendix I-3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX II</B>
</DIV>

<DIV align="left">
<A name="165"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>APPRAISAL LETTERS</B>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->Appendix II-1<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888406.gif" alt="(AIRCRAFT INFORMATION SERVICES INC LOGO)">
</DIV>



<DIV align="center" style="font-size: 10pt; margin-top: 120pt"><B>Mr.&nbsp;Ken Menezes<BR>
Principal, Corporate Finance<BR>
American Airlines, Inc.<BR>
4333 Amon Carter Blvd.<BR>
Fort Worth, TX 76155-2605</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 120pt"><B>Sight Unseen Half Life Current Market Value Opinion<BR>
12 Aircraft Portfolio</B></DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AISI
File No.: A9S031VO-2<BR>
Date: 27 July&nbsp;2009</B>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888406.gif" alt="(AIRCRAFT INFORMATION SERVICES INC LOGO)">
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Ken Menezes<BR>
Principal, Corporate Finance<BR>
American Airlines, Inc.<BR>
4333 Amon Carter Blvd.<BR>
Fort Worth, TX 76155-2605

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Subject:</TD>
    <TD>&nbsp;</TD>
    <TD>Sight Unseen Half Life Current Market Value Opinion,<br>
12 Aircraft Portfolio</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"></TD>
    <TD>&nbsp;</TD>
    <TD>AISI File number: A9S031BVO-2</TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="6%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">Ref:</TD>
    <TD>&nbsp;</TD>
    <TD>(a)&nbsp;Email messages 10 June, 07 July, 24&nbsp;July&nbsp;2009</TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Mr.&nbsp;Menezes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Aircraft Information Services, Inc. (AISI)&nbsp;has been requested to offer our opinion of the sight
unseen June&nbsp;2009 half life current market value for 12 used aircraft (the &#147;Aircraft&#148;) as identified
and defined in Table I and reference (a)&nbsp;above (the &#145;Aircraft&#146;). The Aircraft are valued in June
2009 US dollars.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Methodology and Definitions</B></U></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The standard terms of reference for commercial aircraft value are &#145;base value&#146; and &#145;current market
value&#146; of an &#145;average&#146; aircraft. Base value is a theoretical value that assumes a hypothetical
balanced market while current market value is the value in the real market; both assume a
hypothetical average aircraft condition. All other values are derived from these values. AISI
value definitions are consistent with the current definitions of the International Society of
Transport Aircraft Trading (ISTAT), those of 01 January&nbsp;1994. AISI is a member of that
organization and employs an ISTAT Certified and Senior Certified Appraiser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AISI defines a &#145;base value&#146; as that of a transaction between an equally willing and informed buyer
and seller, neither under compulsion to buy or sell, for a single unit cash transaction with no
hidden value or liability, with supply and demand of the sale item roughly in balance and with no
event which would cause a short term change in the market. Base values are typically given for
aircraft in &#145;new&#146; condition, &#145;average half-life&#146; condition, or &#145;adjusted&#146; for an aircraft in a
specifically described condition at a specific time.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Headquarters,
26072 Merit Circle, Suite 123, Laguna Hills, CA 92653<BR>
TEL: 949-582-8888 FAX: 949-582-8887 EMAIL: mail@AISI.aero</B>

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="RIGHT" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888407.gif" alt="(AIRCRAFT INFORMATION SERVICES INC LOGO)"></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">27 July&nbsp;2009<BR>
AISI File No.&nbsp;A9S031BV0-2<BR>
Page - 2 -

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An &#145;average&#146; aircraft is an operable airworthy aircraft in average physical condition and with
average accumulated flight hours and cycles, with clear title and standard unrestricted certificate
of airworthiness, and registered in an authority which does not represent a penalty to aircraft
value or liquidity, with no damage history and with inventory configuration and level of
modification which is normal for its intended use and age. Note that a stored aircraft is not an
&#145;average&#146; aircraft. AISI assumes average condition unless otherwise specified in this report.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AISI also assumes that airframe, engine and component parts are from the original equipment
manufacturer (OEM)&nbsp;and that maintenance, maintenance program and essential records are sufficient
to permit normal commercial operation under a strict airworthiness authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#145;Half-life&#146; condition assumes that every component or maintenance service which has a prescribed
interval that determines its service life, overhaul interval or interval between maintenance
services, is at a condition which is one-half of the total interval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#145;Full-life&#146; condition assumes zero time since overhaul of airframe, gear, apu, engine overhaul and
engine LLPs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">An &#145;adjusted&#146; appraisal reflects an adjustment from half life condition for the actual condition,
utilization, life remaining or time remaining of an airframe, engine or component.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It should be noted that AISI and ISTAT value definitions apply to a transaction involving a single
aircraft, and that transactions involving more than one aircraft are often executed at considerable
and highly variable discounts to a single aircraft price, for a variety of reasons relating to an
individual buyer or seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AISI defines a &#145;current market value&#146;, which is synonymous with the older term &#145;fair market value&#146;
as that value which reflects the real market conditions including short term events, whether at,
above or below the base value conditions. Assumptions of a single unit sale and definitions of
aircraft condition, buyer/seller qualifications and type of transaction remain unchanged from that
of base value. Current market value takes into consideration the status of the economy in which
the aircraft is used, the status of supply and demand for the particular aircraft type, the value
of recent transactions and the opinions of informed buyers and sellers. Note that for a current
market value to exist, the seller may not be under duress. Current market value assumes that there
is no short term time constraint to buy or sell.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AISI defines a &#145;distressed market value&#146; as that value which reflects the real market condition
including short term events, when the market for the subject aircraft is so depressed that the
seller is under duress. Distressed market value assumes that there is a time constraint to sell
within a period of less than 1&nbsp;year. All other assumptions remain unchanged from that of &#145;current
market value&#146;.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="RIGHT" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888407.gif" alt="(AIRCRAFT INFORMATION SERVICES INC LOGO)">
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">27 July&nbsp;2009<BR>
AISI File No.&nbsp;A9S031BV0-2<BR>
Page - 3 -

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">None of the AISI value definitions take into account remarketing costs, brokerage costs, storage
costs, recertification costs or removal costs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AISI encourages the use of base values to consider historical trends, to establish a consistent
baseline for long term value comparisons and future value considerations, or to consider how actual
market values vary from theoretical base values. Base values are less volatile than current market
values and tend to diminish regularly with time. Base values are normally inappropriate to
determine near term values. AISI encourages the use of current market values to consider the
probable near term value of an aircraft when the seller is not under duress. AISI encourages the
use of distressed market values to consider the probable near term value of an aircraft when the
seller is under duress.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">No physical inspection of the Aircraft or their essential records was made by AISI for the purposes
of this report, nor has any attempt been made to verify information provided to us, which is
assumed to be correct and applicable to the Aircraft.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If more than one aircraft is contained in this report than it should be noted that the values given
are not directly additive, that is, the total of the given values is not the value of the fleet but
rather the sum of the values of the individual aircraft if sold individually over time so as not to
exceed demand.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Valuation</B></U></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is our considered opinion that the sight unseen half life current market values of the Aircraft
at 30 June&nbsp;2009 are as follows in Table I subject to the assumptions, definitions, and disclaimers
herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Aircraft are valued in June&nbsp;2009&nbsp;million US dollars.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="RIGHT" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888407.gif" alt="(AIRCRAFT INFORMATION SERVICES INC LOGO)">
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">27 July&nbsp;2009<BR>
AISI File No.&nbsp;A9S031BV0-2<BR>
Page - 4 -

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">TABLE 1<BR>
A9S031BVO-2<BR>
Report Dated 27 July&nbsp;2009<BR>
Values as of 30 June&nbsp;2009
</DIV>

<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Half Life</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Current</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Market</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Jun-09</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Million US</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">No</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Type</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">MSN</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">DOM</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Engine</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">MTOW</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Dollars</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">1</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">May-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center" nowrap>CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">2</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">May-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">3</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29513</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Jun-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">4</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29515</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Jul-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">5</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Jul-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">6</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Aug-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">7</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29518</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Aug-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">8</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Sep-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">9</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29520</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Sep-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,200</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.64</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">10</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B767-323ER (long range overwater ETOP)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29606</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">May-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">CF6-80C2B6</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">408,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">11</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B777-223ER (long range overwater ETOP)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29587</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Jun-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Trent 892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">648,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">12</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">B777-223ER (long range overwater ETOP)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29955</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Jun-99</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">Trent 892</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">648,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">73.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">Totals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">414.25</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="RIGHT" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888407.gif" alt="(AIRCRAFT INFORMATION SERVICES INC LOGO)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">27 July&nbsp;2009<BR>
AISI File No.&nbsp;A9S031BV0-2<BR>
Page - 5 -

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise agreed by Aircraft Information Services, Inc. (AISI)&nbsp;in writing, this report shall
be for the sole use of the client/addressee. This report is offered as a fair and unbiased
assessment of the subject aircraft. AISI has no past, present, or anticipated future interest in
any of the subject aircraft. The conclusions and opinions expressed in this report are based on
published information, information provided by others, reasonable interpretations and calculations
thereof and are given in good faith. AISI certifies that this report has been independently
prepared and it reflects AISI&#146;s conclusions and opinions which are judgments that reflect
conditions and values current at the time of this report. The values and conditions reported upon
are subject to any subsequent change. AISI shall not be liable to any party for damages arising
out of reliance or alleged reliance on this report, or for any party&#146;s action or failure to act as
a result of reliance or alleged reliance on this report.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Sincerely,
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B><I>AIRCRAFT INFORMATION SERVICES, INC.</I></B>

</DIV>


<DIV align="LEFT" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888408.gif" alt="(-s- Fred Bearden)">
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Fred Bearden<BR>
CEO

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888401.gif" alt="(LOGO)"><BR>
1295 Northern Boulevard<BR>
Manhasset, New York 11030<BR>
(516)&nbsp;365-6272 &#183; Fax (516)&nbsp;365-6287
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">July&nbsp;27, 2009

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Ken Menezes, Principal<BR>
Corporate Finance<BR>
American Airlines, Inc.<BR>
4333 Amon Carter Blvd., MD 5662<BR>
Fort Worth, TX 76155-2605

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Mr.&nbsp;Menezes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In response to your request, BK Associates, Inc. is pleased to provide our opinion regarding the
half-time Current Market Value (CMV)&nbsp;for 12 Boeing aircraft in the American Airlines Fleet. The
aircraft, which consist of B737-823W, B767-323ER or B777-223ER models, are further identified in
the attached Figure 1 by registration, serial number, engine model, date of manufacture and maximum
takeoff weight. Our opinion of the values is included in Figure 1.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B><I>DEFINITIONS</I></B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">According to the International Society of Transport Aircraft Trading&#146;s (ISTAT)&nbsp;definition of Fair
Market Value, to which BK Associates subscribes, the quoted fair market value is the Appraiser&#146;s
opinion of the most likely trading price that may be generated for an aircraft under the market
circumstances that are perceived to exist at the time in question. The fair market value assumes
that the aircraft is valued for its highest, best use, that the parties to the hypothetical sale
transaction are willing, able, prudent and knowledgeable, and under no unusual pressure for a
prompt sale, and that the transaction would be negotiated in an open and unrestricted market on an
arm&#146;s length basis, for cash or equivalent consideration, and given an adequate amount of time for
effective exposure to prospective buyers, which BK Associates considers to be 12 to 18&nbsp;months. The
market value normally refers to a transaction involving a single aircraft. When multiple aircraft
are acquired in the same transaction, the trading price of each unit may be discounted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Base Value, is the Appraiser&#146;s opinion of the underlying economic value of an aircraft in an open,
unrestricted, stable market environment with a reasonable balance of supply and demand, and assumes
full consideration of its &#147;highest and best use&#148;. An aircraft&#146;s base value is founded in the
historical trend of values and in the projection of future value trends and presumes an arm&#146;s
length, cash transaction between willing, able and knowledgeable parties, acting prudently, with an
absence of duress and with a reasonable period of time available for marketing.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">July&nbsp;27, 2009<BR>
Page 2

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B><I>MARKET DISCUSSION &#038; METHODOLOGY</I></B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Current values are normally based on comparison to recent sales of comparable aircraft.
Unfortunately, there have been few recent transactions involving comparable aircraft for which the
price was divulged. In recent years the major airlines and other aviation industry entities in the
United States have claimed, with support of the government and the courts that the realizations in
their aircraft sales should be kept confidential.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There have been no publicly reported sales of comparable aircraft that would indicate its current
value. Some prices are divulged informally in private conversations, and of course, appraisers are
often privy to transaction prices from appraisals they have conducted. These cannot be divulged in
our reports.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">From these sources we are aware of several transactions in the past year of some B777 and B737-800
aircraft. These are not directly comparable because they are older or younger aircraft than those
being appraised. However, they do serve to confirm the comparable values in our database and
confirm our methodology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the absence of recent comparable sales, an appropriate methodology is to determine the base
value that would apply in a balanced market and then assess the current market conditions to
determine the market value.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As the definition implies, the base value is determined from long-term historical trends. BK
Associates has accumulated a database of over 10,000 data points of aircraft sales that occurred
since 1970. From analysis of these data we know, for example, what the average aircraft should
sell for as a percentage of its new price, as well as, the high and low values that have occurred
in strong and weak markets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Based on these data, we have developed relationships between aircraft age and sale price for
wide-bodies, narrow-bodies, large turboprops and, more recently, regional jet and freighter
aircraft. Within these groups we have developed further refinements for such things as derivative
aircraft, aircraft still in production versus no longer in production, and aircraft early in the
production run versus later models. Within each group variations are determined by the performance
capabilities of each aircraft relative to the others. We now track some 150 different variations
of aircraft types and models and determine current and forecast base values. These relationships
are verified, and changed or updated if necessary, when actual sales data becomes available.<BR>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">July&nbsp;27, 2009<BR>
Page 3

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This relationship between sales price as a function of age and the original price is depicted in
the following figure.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888403.gif" alt="(GRAPH)">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the Aircraft are 10 to 11&nbsp;years old. The data suggest that a 10 to 11-year old aircraft
should sell for 42 to 46&nbsp;percent of its original price. So, for the B737-800s for example, the
original price was likely about $41 to $42&nbsp;million. The data suggest that on average today after
allowing for inflation it should sell for about $24.45&nbsp;million. By a similar analysis the
suggested average selling price today for the B767 would be $47.5 to $51.7&nbsp;million and it would be
$70 to $73&nbsp;million for the B777s. However, recent experience has shown that after a long
production run, even popular and successful aircraft tend to approach or fall below the &#147;average&#148;
line in the figure, especially when the specific aircraft is in the latter half of its likely
useful life. By contrast, new, popular and successful models tend to have values above the line
for the first 10&nbsp;years or so.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">July&nbsp;27, 2009<BR>
Page 4

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There is no doubt that all of these models have been quite successful. The B737-800 is arguably
the most successful aircraft ever. There are about 2,800 in service or on order, which is
surpassed only by the A320 with 3,800. However, the A320 has been in production for nearly 10
years longer and the B737-800 may well pass it some day. We conclude the B737-800 values are about
10&nbsp;percent above the values suggested by the historical comparison.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Similarly, the B777 has been popular and successful. It has become the workhorse of the long-haul
fleet. There are over 650 of all models in service with about 260 more on order. There are 407
ERs in service with 43 operators. We concluded it also has values some five percent higher than
that suggested by the average historical data.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the B767s, while they have been very successful, they were in production some 10&nbsp;years before
the other models. Production has essentially ceased although some new recent orders were placed to
fill the gap created by delays of the B787. As noted above, experience has shown that in these
circumstances the values tend to fall below the &#147;average&#148; line in the figure and we conclude the
current base values are about eight percent below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Regarding the current market values, we consider the current demand is still relatively strong for
the B737-800s and the B777 and conclude the market for them is in balance and the CMV equals the
BV. There are only five B737-800s listed as being for sale or lease but all are for lease only.
Similarly, there are only five B777-200ERs listed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For the B767-300ER, 14 are listed as being on the market. They represent 2.8&nbsp;percent of the fleet.
Experience has shown that downward pressure begins on values when more than one percent of the
fleet is idle. We conclude the CMVs of the B767-300ER is about 10&nbsp;percent below the base value.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B><I>ASSUMPTIONS &#038; DISCLAIMER</I></B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It should be understood that BK Associates has neither inspected the Aircraft nor the maintenance
records, but has relied upon the information provided by you and in the BK Associates database.
The assumptions have been made that all Airworthiness Directives have been complied with; accident
damage has not been incurred that would affect market values; the Aircraft are at half-time between
major maintenance events; and maintenance has been accomplished in accordance with a civil
airworthiness authority&#146;s approved maintenance program and accepted industry standards. Further,
we have assumed unless otherwise stated, that the Aircraft is in typical configuration for the type
and has accumulated an average number of hours and cycles. Deviations from these assumptions can
change significantly our opinion regarding the values.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">July&nbsp;27, 2009<BR>
Page 5

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BK Associates, Inc. has no present or contemplated future interest in the Aircraft, nor any
interest that would preclude our making a fair and unbiased estimate. This appraisal represents
the opinion of BK Associates, Inc. and reflects our best judgment based on the information
available to us at the time of preparation and the time and budget constraints imposed by the
client. It is not given as a recommendation, or as an inducement, for any financial transaction
and further, BK Associates, Inc. assumes no responsibility or legal liability for any action taken
or not taken by the addressee, or any other party, with regard to the appraised equipment. By
accepting this appraisal, the addressee agrees that BK Associates, Inc. shall bear no such
responsibility or legal liability. This appraisal is prepared for the use of the addressee and
shall not be provided to other parties without the express consent of the addressee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Sincerely,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">BK ASSOCIATES, INC.

</DIV>

<DIV align="LEFT" style="font-size: 10pt; margin-top: 18pt; margin-left: 50%"><IMG src="d68884d6888409.gif" alt="(-s- John F. Keitz)">
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">John F. Keitz<BR>
President<BR>
ISTAT Senior Certified Appraiser<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And Appraiser Fellow

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">JFK/kf<BR>
Attachment

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Figure 1<BR>
<B>American Airlines<BR>
Current Values $millions</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
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    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>AIRCRAFT</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>SERIAL</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>DATE of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>MTOW</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>1/2 time</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>TYPE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>REGIST.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>NUMBER</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>ENGINE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>MFGR.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Lbs.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>CMV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">1</TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><DIV style="margin-left:0px; text-indent:0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>N909AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>29511</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center" nowrap>CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">05-19-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.60</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">2</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N910AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29512</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">05-25-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.60</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">3</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N912AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29513</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">06-24-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.60</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">4</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N914AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29515</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">07-16-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.60</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">5</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N915AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29516</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">07-23-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.60</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">6</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N916AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29517</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">08-06-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28.20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">7</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N917AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29518</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">08-20-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28.20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">8</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N918AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29519</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">09-09-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28.20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">9</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B737-823</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N919AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29520</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">09-14-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">174,200</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28.20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">10</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">B767-323ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N399AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29606</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">CF6-80C2B6</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">05-20-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">408,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">41.80</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="top"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="left" valign="top">11</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B777-223</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N778AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29587</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center">Trent 892</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap align="right" valign="top">06-01-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">648,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">76.20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">12</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><DIV style="margin-left:0px; text-indent:-0px">B777-223</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">N779AN</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29955</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="center" nowrap>Trent 892</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>06-27-1999</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>648,000</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" nowrap>76.20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="RIGHT" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888410.gif" alt="(MBA MORTEN BEYER &#038; AGNEW)"></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June&nbsp;12, 2009</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Ken Menezes<BR>
Principal &#151; Corporate Finance<BR>
American Airlines

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">VIA E-MAIL
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Mr.&nbsp;Menezes:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Morten Beyer &#038; Agnew (mba)&nbsp;has been retained by American Airlines (the Client) to render its Expert
Opinion of the Half-Time Current
Market<SUP style="font-size: 85%; vertical-align: text-top">1</SUP>
(CMV)&nbsp;Values of nine (9)&nbsp;Boeing 737-800, one
(1)&nbsp;Boeing 767-300ER, and two (2)&nbsp;Boeing 777-200ER aircraft as of June&nbsp;2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In rendering this Expert Opinion, mba has relied upon industry knowledge, confidentially obtained
data points, its market expertise and current analysis of market trends and conditions, along with
information extrapolated from its semi-annual publication mba <B>Future Aircraft <font style="white-space: nowrap">Values &#151; Jet</font>
Transport</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In developing the Value of these aircraft, mba did not inspect the aircraft or the records and
documentation associated with the aircraft, but relied solely on partial information supplied by
the Client. This information was not independently verified by mba. Therefore, we used certain
assumptions that are generally accepted industry practice to calculate the value of aircraft when
more detailed information is not available.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The principal assumptions for these aircraft are as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">1.</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>The aircraft is in good overall condition.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The overhaul status of the airframe, engines, landing gear and other major components are
the equivalent of mid-time/mid-life, or new, unless otherwise stated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The historical maintenance documentation has been maintained to acceptable international
standards.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The specifications of the aircraft are those most common for an aircraft of its type and
vintage.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The aircraft is in a standard airline configuration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The aircraft is current as to all Airworthiness Directives and Service Bulletins.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Its modification status is comparable to that most common for an aircraft of its type and
vintage.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Its utilization is comparable to industry averages.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There is no history of accident or incident damage.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="RIGHT">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No accounting is made for lease revenues, obligations or terms of ownership unless otherwise
specified.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD>&nbsp;</TD>
    <TD>Current Market Value is the Appraiser&#146;s opinion of the
most likely trading price that may be generated for an aircraft under the
market circumstances that are perceived to exist at the time in question.
Market Value assumes that the aircraft is valued for its highest, best use,
that the parties to the sale transaction are willing, able, prudent and
knowledgeable, and under no unusual pressure for a prompt sale, and that the
transaction would be negotiated in an open and unrestricted market on an
arm&#146;s-length basis, for cash or equivalent consideration, and given an adequate
amount of time for effective exposure to prospective buyers.</TD>
</TR>

</TABLE>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">2101 wilson boulevard | suite 1001 | arlington; virginia 22201<BR>
phone: 1 703 276 3200 | fax: 1 703 276 3201<BR>
www.mba.aero
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<Div style="font-family: 'times new roman',times,serif">






<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Ken Menezes<BR>
June&nbsp;12, 2009<BR>
Page 2 of 2

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>American Airlines Valuation<BR>
($U.S. Million)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Serial</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Date of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Aircraft Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Registration</B></TD>
    <TD>&nbsp;</TD>

<TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Maufacture</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Engine Type</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>MTOW</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>HTCMV</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">1</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29511</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N909AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">May-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.26</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">2</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29512</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N910AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">May-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.26</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">3</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29513</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N912AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Jun-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">4</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29515</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N914AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Jul-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.52</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">5</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29516</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N915AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Jul-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.52</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">6</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29517</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N916AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Aug-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.64</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">7</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29518</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N917AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Aug-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.64</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">8</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29519</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N918AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Sep-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.77</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">9</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">737-800</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29520</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N919AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Sep-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CFM56-7B26</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">174,200</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.77</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">10</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">767-300ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29606</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N399AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">May-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CF6-80C2B6</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">408,000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42.08</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">11</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">777-200ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29587</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N778AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Jun-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trent 892</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">648,000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69.81</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">12</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">777-200ER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29955</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">N779AN</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Jun-99</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trent 892</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">648,000</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69.81</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>$</B></TD>
    <TD align="right" valign="top"><B>420.47</B></TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Legend for Valuation &#151;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MTOW
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Maximum Takeoff off Weight</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">HT CMV
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Half-Time Current Market Value</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Expert Opinion has been prepared for the exclusive use of American Airlines, and shall not be
provided to other parties by mba without the express consent of American Airlines.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This report represents the opinion of mba as to Half-Time Current Market Values of the subject
aircraft and is intended to be advisory only, in nature. mba further certifies that it does not
have, and does not expect to have, any financial or other interest in the subject or similar
aircraft. mba assumes no responsibility or legal liability for any actions taken or not taken by
American Airlines or any other party with regard to the subject aircraft. By accepting this
report, all parties agree that mba shall bear no such responsibility or legal liability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%">Sincerely,<BR>
Morten Beyer &#038; Agnew, Inc.

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">June&nbsp;12, 2009
</DIV>








<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><IMG src="d68884d6888412.gif" alt="(-s- Stephen P. Rehrmann)"><BR>Stephen P. Rehrmann, ATP/FE<BR>
Vice President &#151; Appraisal Group<BR>
Morten Beyer &#038; Agnew, Inc.<BR>
ISTAT Certified Appraiser

</DIV>



<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888413.gif" alt="(MBA LOGO)">
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>APPENDIX III</B>
</DIV>

<DIV align="left">
<A name="166"></A>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ALLOCABLE PORTION OF THE NOTES AND LOAN TO VALUE RATIOS PER AIRCRAFT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following tables set forth LTVs for the Allocable Portion of the Notes with respect to
each Aircraft as of the Cut-Off Date and each Payment Date. For any date before the first Payment
Date, the Allocable Portion of the Notes with respect to each Aircraft will be the amount specified
in Appendix&nbsp;III for the Cut-Off Date. For any date after the first Payment Date, other than a
Payment Date, the Allocable Portion of the Notes with respect to each Aircraft will be the amount
specified in Appendix&nbsp;III for the Payment Date that immediately precedes such date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The LTVs for the Cut-Off Date and each Payment Date listed in such tables were obtained by
dividing (<I>i</I>) the Allocable Portion of the Notes with respect to each Aircraft (assuming all of the
Aircraft are subjected to the lien of the Aircraft Security Agreement on or prior to the Cut-Off
Date, and that no Payment Default or redemption has occurred) determined immediately after giving
effect to any principal payments scheduled to be made on each such date by (<I>ii</I>) the Assumed
Aircraft Value on such date, calculated based on the Depreciation Assumption, of such Aircraft.
See &#147;Description of the Aircraft and the Appraisals &#151; The Appraisals&#148; and &#147;Description of the Notes
&#151; Security &#151; Loan to Value Ratios of Notes.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Depreciation Assumption contemplates that the Assumed Aircraft Value of each Aircraft
depreciates annually by approximately 3% of the value at delivery per year for the first 15&nbsp;years
after delivery of such Aircraft by the manufacturer, by approximately 4% per year thereafter for
the next five years and by approximately 5% each year after that. The appraised value of each
Aircraft is the theoretical value that, when depreciated from the initial delivery of such Aircraft
by the manufacturer in accordance with the Depreciation Assumption, results in the appraised value
of such Aircraft specified under &#147;Prospectus Summary &#151; The Aircraft&#148; and &#147;Description of the
Aircraft and the Appraisals &#151; The Appraisals.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other rates or methods of depreciation could result in materially different LTVs, and no
assurance can be given (<I>i</I>) that the depreciation rate and method assumed for the purposes of the
tables are the ones most likely to occur or (<I>ii</I>) as to the actual future value of any Aircraft.
Thus, the tables should not be considered a forecast or prediction of expected or likely LTVs, but
simply a mathematical calculation based on one set of assumptions. See &#147;Risk Factors &#151; Risk
Factors Relating to the Notes and the Exchange Offer &#151; Appraisals should not be relied upon as a
measure of realizable value of the Aircraft.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>A. Boeing 737-823</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N909AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,260,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,069,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,697,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,932,300.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,136,699.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,134,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,829,380.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,102,920.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,571,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,760,223.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069,157.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,009,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,724,829.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,035,394.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,446,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,723,197.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,001,631.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,883,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,755,329.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">967,868.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,321,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,821,223.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">934,105.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,758,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,920,880.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">900,342.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,195,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,054,300.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">866,580.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,632,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,221,483.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">832,817.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,882,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,362,406.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">859,077.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,132,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,548,346.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">814,060.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,382,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,779,303.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">769,042.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,631,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,779,303.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Appendix&nbsp;III-1
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N910AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,260,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,069,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,697,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,932,300.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,136,699.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,134,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,829,380.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,102,920.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,571,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,760,223.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069,157.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,009,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,724,829.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,035,394.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,446,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,723,197.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,001,631.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,883,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,755,329.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">967,868.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,321,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,821,223.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">934,105.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,758,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,920,880.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">900,342.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,195,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,054,300.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">866,580.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,632,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,221,483.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">832,817.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,882,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,362,406.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">859,077.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,132,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,548,346.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">814,060.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,382,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,779,303.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">769,042.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,631,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,779,303.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N912AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,390,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,153,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,824,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,011,173.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,141,826.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,259,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,902,793.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,108,380.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,693,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,828,343.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074,450.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,128,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,787,823.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,040,520.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,562,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,781,233.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,006,590.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,997,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,808,573.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">972,660.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,431,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,869,843.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">938,730.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,866,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,965,043.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">904,800.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,300,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,094,173.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">870,870.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,735,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,257,233.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">836,940.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,981,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,393,903.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">863,330.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,227,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,575,813.34</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">818,090.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,473,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,802,963.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">772,850.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,719,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,802,963.33</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N914AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,520,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,238,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,951,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,090,046.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,147,953.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,383,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,976,206.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,113,840.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,815,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,896,463.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,079,742.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,246,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,850,817.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,045,645.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,678,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,839,269.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,011,548.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,110,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,861,817.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">977,451.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,542,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,918,463.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">943,354.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,973,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,009,206.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">909,257.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,405,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,134,046.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">875,160.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,837,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,292,983.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">841,062.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,079,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,425,400.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">867,582.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,321,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,603,280.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">822,120.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,564,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,826,623.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">776,657.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,806,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,826,623.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N915AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,520,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,238,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,951,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,090,046.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,147,953.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,383,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,976,206.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,113,840.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,815,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,896,463.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,079,742.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,246,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,850,817.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,045,645.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,678,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,839,269.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,011,548.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,110,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,861,817.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">977,451.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,542,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,918,463.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">943,354.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,973,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,009,206.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">909,257.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,405,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,134,046.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">875,160.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,837,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,292,983.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">841,062.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,079,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,425,400.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">867,582.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,321,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,603,280.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">822,120.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,564,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,826,623.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">776,657.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,806,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,826,623.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N916AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,640,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,316,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,069,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,162,851.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,153,148.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,498,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,043,971.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,118,880.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,927,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,959,343.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,084,628.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,356,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,908,966.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,050,377.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,785,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,892,840.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,016,125.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,214,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,910,966.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">981,874.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,644,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,963,343.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">947,622.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,073,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,049,971.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">913,371.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,502,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,170,851.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">879,120.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,931,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,325,983.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">844,868.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,170,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,454,474.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">871,508.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,409,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,628,634.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">825,840.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,648,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,848,463.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">780,171.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,886,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,848,463.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N917AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,640,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,316,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,069,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,162,851.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,153,148.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,498,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,043,971.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,118,880.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,927,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,959,343.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,084,628.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,356,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,908,966.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,050,377.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,785,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,892,840.36</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,016,125.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,214,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,910,966.07</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">981,874.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,644,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,963,343.21</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">947,622.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,073,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,049,971.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">913,371.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,502,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,170,851.77</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">879,120.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,931,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,325,983.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">844,868.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,170,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,454,474.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">871,508.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,409,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,628,634.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">825,840.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,648,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,848,463.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">780,171.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,886,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,848,463.18</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N918AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,770,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,400,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,196,357.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,241,724.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,158,275.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,622,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,117,384.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,124,340.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,049,071.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,027,463.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,089,921.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,475,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,971,960.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,055,502.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,901,785.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,950,875.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,021,084.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,328,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,964,210.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">986,665.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,754,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,011,963.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">952,247.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,180,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,094,134.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">917,828.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,607,214.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,210,724.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">883,410.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,033,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,361,733.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">848,991.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,268,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,485,971.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">875,761.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,503,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,656,101.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829,870.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,739,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,872,123.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">783,978.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,974,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,872,123.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N919AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,770,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">17,400,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,196,357.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,241,724.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,158,275.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,622,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,117,384.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,124,340.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,049,071.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,027,463.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,089,921.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,475,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,971,960.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,055,502.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,901,785.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,950,875.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,021,084.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,328,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,964,210.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">986,665.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,754,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,011,963.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">952,247.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,180,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,094,134.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">917,828.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,607,214.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,210,724.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">883,410.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,033,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,361,733.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">848,991.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,268,714.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,485,971.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">875,761.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,503,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,656,101.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829,870.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,739,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,872,123.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">783,978.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,974,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,872,123.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>B. Boeing 767-323ER</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="42%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N399AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">40,150,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,097,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39,289,642.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,359,553.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,737,446.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,429,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,673,253.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,686,300.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,568,928.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,038,574.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,634,678.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,708,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,455,517.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,583,057.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,848,214.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,924,081.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,531,435.72</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,987,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,444,267.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,479,814.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,127,500.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,016,074.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,428,192.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33,267,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,639,503.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,376,571.43</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,406,785.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,314,553.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,324,950.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,546,428.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,041,224.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,273,328.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,399,285.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,727,746.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,313,478.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,252,142.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,483,096.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,244,650.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,105,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,307,274.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,175,821.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26,957,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,307,274.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>C. Boeing 777-223ER</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N778AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">73,156,666.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">47,552,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,589,023.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,385,148.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,166,851.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,021,380.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,312,568.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,072,580.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,453,738.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,334,047.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,978,521.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,886,095.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,449,584.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,884,462.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,318,452.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,659,180.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,790,404.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,750,809.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,962,834.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,696,345.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,183,166.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,360,547.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,602,287.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,615,523.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,852,318.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,508,228.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,047,880.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,438,148.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,414,170.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,480,238.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,118,037.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,320,111.47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,390,047.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,724,769.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,393,268.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,299,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,456,912.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,267,856.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,209,666.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,314,467.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,142,445.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,119,476.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,314,467.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000"><B>N779AN</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assumed</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Allocable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Scheduled</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Aircraft Value</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Portion</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Principal Payment</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>LTV</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cut-Off Date</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">73,156,666.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">47,552,000.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">65.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71,589,023.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,385,148.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,166,851.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70,021,380.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41,312,568.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,072,580.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68,453,738.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,334,047.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,978,521.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66,886,095.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,449,584.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,884,462.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65,318,452.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,659,180.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,790,404.29</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,750,809.52</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,962,834.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,696,345.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62,183,166.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,360,547.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,602,287.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,615,523.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,852,318.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,508,228.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,047,880.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,438,148.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,414,170.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57,480,238.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,118,037.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,320,111.47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55,390,047.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,724,769.06</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,393,268.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,299,857.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,456,912.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,267,856.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">February&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,209,666.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,314,467.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,142,445.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">August&nbsp;1, 2016</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49,119,476.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,314,467.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="d68884d6888400.gif" alt="(AMERICAN AIRLINES LOGO)">
</DIV>


<DIV align="Center" style="font-size: 14pt; margin-top: 6pt"><B>American Airlines, Inc.</B>

</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>Offer to Exchange</B>

</DIV>

<DIV align="Center" style="font-size: 12pt; margin-top: 6pt"><B>$276,400,000 Outstanding 13.0% 2009-2 Secured Notes due 2016 for<BR>
$276,400,000 Registered 13.0% 2009-2 Secured Notes due 2016</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PROSPECTUS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 50%"><B>, 2009</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<DIV style="width: 100%; border-bottom: 3px double #000000; font-size: 1px">&nbsp;</DIV>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION NOT REQUIRED IN PROSPECTUS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the estimated fees and expenses (except for the Securities and
Exchange Commission registration fee, which is not an estimate) payable by the registrant in connection with the registration
of the notes:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Securities and Exchange Commission registration fee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,424</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Printing costs for registration statement, prospectus and related documents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">60,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Legal fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accountants&#146; fees and expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exchange agent fees</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,576</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">305,000</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;145 of the DGCL, as amended, provides in regard to indemnification of directors and
officers as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#167; 145. Indemnification of officers, directors, employees and agents; insurance
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A corporation shall have power to indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (other than an action
by or in the right of the corporation) by reason of the fact that the person is or was a
director, officer, employee or agent of the corporation, or is or was serving at the request
of the corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against expenses (including
attorneys&#146; fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with such action, suit or proceeding if the person
acted in good faith and in a manner the person reasonably believed to be in or not opposed
to the best interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe the person&#146;s conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption
that the person did not act in good faith and in a manner which the person reasonably
believed to be in or not opposed to the best interests of the corporation, and, with respect
to any criminal action or proceeding, had reasonable cause to believe that the person&#146;s
conduct was unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A corporation shall have power to indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action or suit by or
in the right of the corporation to procure a judgment in its favor by reason of the fact
that the person is or was a director, officer, employee or agent of the corporation, or is
or was serving at the request of the corporation as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise against
expenses (including attorneys&#146; fees) actually and reasonably incurred by the person in
connection with the defense or settlement of such action or suit if the person acted in good
faith and in a manner the person reasonably believed to be in or not opposed to the best
interests of the corporation and except that no indemnification shall be made in respect of
any claim, issue or matter as to which such person shall have been adjudged to be liable to
the corporation unless and only to the extent that the Court of Chancery or the court in
which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or
such other court shall deem proper.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that a present or former director or officer of a corporation has
been successful on the merits or otherwise in defense of any action, suit or proceeding
referred to in subsections (a)&nbsp;and (b)&nbsp;of this section, or in defense of any claim, issue or
matter therein, such person shall be indemnified against expenses (including attorneys&#146;
fees) actually and reasonably incurred by such person in connection therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any indemnification under subsections (a)&nbsp;and (b)&nbsp;of this section (unless ordered
by a court) shall be made by the corporation only as authorized in the specific case upon a
determination that indemnification of the present or former director, officer, employee or
agent is proper in the circumstances because the person has met the applicable standard of
conduct set forth in subsections (a)&nbsp;and (b)&nbsp;of this section. Such determination shall be
made, with respect to a person who is a director or officer at the time of such
determination, (1)&nbsp;by a majority vote of the directors who are not parties to such action,
suit or proceeding, even though less than a quorum, or (2)&nbsp;by a committee of such directors
designated by majority vote of such directors, even though less than a quorum, or (3)&nbsp;if
there are no such directors, or if such directors so direct, by independent legal counsel in
a written opinion, or (4)&nbsp;by the stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Expenses (including attorneys&#146; fees) incurred by an officer or director in
defending any civil, criminal, administrative or investigative action, suit or proceeding
may be paid by the corporation in advance of the final disposition of such action, suit or
proceeding upon receipt of an undertaking by or on behalf of such director or officer to
repay such amount if it shall ultimately be determined that such person is not entitled to
be indemnified by the corporation as authorized in this section. Such expenses (including
attorneys&#146; fees) incurred by former directors and officers or other employees and agents may
be so paid upon such terms and conditions, if any, as the corporation deems appropriate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The indemnification and advancement of expenses provided by, or granted pursuant
to, the other subsections of this section shall not be deemed exclusive of any other rights
to which those seeking indemnification or advancement of expenses may be entitled under any
bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to
action in such person&#146;s official capacity and as to action in another capacity while holding
such office.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) A corporation shall have power to purchase and maintain insurance on behalf of any
person who is or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against such person and incurred by such person in any such capacity, or
arising out of such person&#146;s status as such, whether or not the corporation would have the
power to indemnify such person against such liability under this section.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) For purposes of this section, references to &#147;the corporation&#148; shall include, in
addition to the resulting corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors,
officers, and employees or agents, so that any person who is or was a director, officer,
employee or agent of such constituent corporation, or is or was serving at the request of
such constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, shall stand in the same
position under this section with respect to the resulting or surviving corporation as such
person would have with respect to such constituent corporation if its separate existence had
continued.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of this section, references to &#147;other enterprises&#148; shall include
employee benefit plans; references to &#147;fines&#148; shall include any excise taxes assessed on a
person with respect to any employee benefit plan; and references to &#147;serving at the request
of the corporation&#148; shall include any service as a director, officer, employee or agent of
the corporation which imposes duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner such person reasonably
believed to be in the interest of the participants and beneficiaries of an employee benefit
plan shall be deemed to have acted in a manner &#147;not opposed to the best interests of the
corporation&#148; as referred to in this section.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The indemnification and advancement of expenses provided by, or granted pursuant
to, this section shall, unless otherwise provided when authorized or ratified, continue as
to a person who has ceased to be a director, officer, employee or agent and shall inure to
the benefit of the heirs, executors and administrators of such a person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Court of Chancery is hereby vested with exclusive jurisdiction to hear and
determine all actions for advancement of expenses or indemnification brought under this
section or under any bylaw, agreement, vote of stockholders or disinterested directors, or
otherwise. The Court of Chancery may summarily determine a corporation&#146;s obligation to
advance expenses (including attorneys&#146; fees).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;VII of American Airlines, Inc.&#146;s by-laws provide in regard to indemnification of
directors and officers as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <I>Nature of Indemnity</I>. The corporation shall indemnify any person who was or
is a party or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative by
reason of the fact that he is or was or has agreed to become a director or officer of the
corporation, or is or was serving or has agreed to serve at the request of the corporation
as a director or officer, of another corporation, partnership, joint venture, trust or other
enterprise, or by reason of any action alleged to have been taken or omitted in such
capacity, and may indemnify any person who was or is a party or is threatened to be made a
party to such an action by reason of the fact that he is or was or has agreed to become an
employee or agent of the corporation, or is or was serving or has agreed to serve at the
request of the corporation as an employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including attorneys&#146; fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred by him or
on his behalf in connection with such action, suit or proceeding and any appeal therefrom,
if he acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action or
proceeding had no reasonable cause to believe his conduct was unlawful; except that in the
case of an action or suit by or in the right of the corporation to procure a judgment in its
favor (1)&nbsp;such indemnification shall be limited to expenses (including attorneys&#146; fees)
actually and reasonably incurred by such person in the defense or settlement of such action
or suit, and (2)&nbsp;no indemnification shall be made in respect of any claim, issue or matter
as to which such person shall have been adjudged to be liable to the corporation unless and
only to the extent that the Delaware Court of Chancery or the court in which such action or
suit was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or
such other court shall deem proper.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that the person did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding, had reasonable cause to believe that his
conduct was unlawful.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <I>Successful Defense</I>. To the extent that a director, officer, employee or
agent of the corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in Section l hereof or in defense of any claim, issue
or matter therein, he shall be indemnified against expenses (including attorneys&#146; fees)
actually and reasonably incurred by him in connection therewith.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <I>Determination That Indemnification Is Proper</I>. (a)&nbsp;Any indemnification of a
director or officer of the corporation under Section l hereof (unless ordered by a court)
shall be made by the corporation unless a determination is made that indemnification of the
director or officer is not proper in the circumstances because he has not met the applicable
standard of conduct set forth in Section l hereof. Such determination shall be made, with
respect to a director or officer, (1)&nbsp;by a majority vote of the directors who are not
parties to such action, suit or proceeding, even though less than a quorum, or (2)&nbsp;by a
committee of such directors designated by a majority vote of such directors, even though
less than a
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">quorum, or (3)&nbsp;if there are no such directors, or if such directors so direct, by
independent legal counsel in a written opinion, or (4)&nbsp;by the stockholders.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any indemnification of an employee or agent of the corporation (who is not also a
director or officer of the corporation) under Section l hereof (unless ordered by a court)
may be made by the corporation upon a determination that indemnification of the employee or
agent is proper in the circumstances because such person has met the applicable standard of
conduct set forth in Section l hereof. Such determination, in the case of an employee or
agent, may be made (1)&nbsp;in accordance with the procedures outlined in the second sentence of
Section&nbsp;3(a), or (2)&nbsp;by an officer of the corporation, upon delegation of such authority by
a majority of the Board of Directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <I>Advance Payment of Expenses</I>. Expenses (including attorneys&#146; fees) incurred
by a director or officer in defending any civil, criminal, administrative or investigative
action, suit or proceeding shall be paid by the corporation in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking by or on
behalf of the director or officer to repay such amount if it shall ultimately be determined
that he is not entitled to be indemnified by the corporation as authorized in this Article.
Such expenses (including attorneys&#146; fees) incurred by other employees and agents may be so
paid upon such terms and conditions, if any, as the corporation deems appropriate. The board
of directors may authorize the corporation&#146;s counsel to represent a director, officer,
employee or agent in any action, suit or proceeding, whether or not the corporation is a
party to such action, suit or proceeding.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <I>Procedure for Indemnification of Directors or Officers</I>. Any
indemnification of a director or officer of the corporation under Sections l and 2, or
advance of costs, charges and expenses of a director or officer under Section&nbsp;4 of this
Article, shall be made promptly, and in any event within 60&nbsp;days, upon the written request
of the director or officer. If the corporation fails to respond within 60&nbsp;days, then the
request for indemnification shall be deemed to be approved. The right to indemnification or
advances as granted by this Article shall be enforceable by the director or officer in any
court of competent jurisdiction if the corporation denies such request, in whole or in part.
Such person&#146;s costs and expenses incurred in connection with successfully establishing his
right to indemnification, in whole or in part, in any such action shall also be indemnified
by the corporation. It shall be a defense to any such action (other than an action brought
to enforce a claim for the advance of costs, charges and expenses under Section&nbsp;4 of this
Article where the required undertaking, if any, has been received by the corporation) that
the claimant has not met the standard of conduct set forth in Section l of this Article, but
the burden of proving such defense shall be on the corporation. Neither the failure of the
corporation (including its board of directors or a committee thereof, its independent legal
counsel, and its stockholders) to have made a determination prior to the commencement of
such action that indemnification of the claimant is proper in the circumstances because he
has met the applicable standard of conduct set forth in Section l of this Article, nor the
fact that there has been an actual determination by the corporation (including its board of
directors or a committee thereof, its independent legal counsel, and its stockholders) that
the claimant has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the claimant has not met the applicable standard of
conduct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <I>Survival; Preservation of Other Rights</I>. The foregoing indemnification
provisions shall be deemed to be a contract between the corporation and each director,
officer, employee and agent who serves in such capacity at any time while these provisions
as well as the relevant provisions of the Delaware Corporation Law are in effect and any
repeal or modification thereof shall not affect any right or obligation then existing with
respect to any state of facts then or previously existing or any action, suit, or proceeding
previously or thereafter brought or threatened based in whole or in part upon any such state
of facts. Such a &#147;contract right&#148; may not be modified retroactively without the consent of
such director, officer, employee or agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The indemnification provided by this Article&nbsp;VII shall not be deemed exclusive of any
other rights to which those indemnified may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in his official
capacity and as to action in another capacity while holding such office, and shall continue
as to a person who has ceased to be a director, officer, employee or agent and shall inure
to the benefit of the heirs, executors and administrators of such a person.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <I>Insurance</I>. The corporation shall purchase and maintain insurance on behalf
of any person who is or was or has agreed to become a director or officer of the
corporation, or is or was serving at the request of the corporation as a director or officer
of another corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against him and incurred by him or on his behalf in any such capacity, or
arising out of his status as such, whether or not the corporation would have the power to
indemnify him against such liability under the provisions of this Article, provided that
such insurance is available on acceptable terms, which determination shall be made by a vote
of a majority of the entire board of directors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. <I>Savings Clause</I>. If this Article or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the corporation shall
nevertheless indemnify each director or officer and may indemnify each employee or agent of
the corporation as to costs, charges and expenses (including attorneys&#146; fees), judgments,
fines and amounts paid in settlement with respect to any action, suit or proceeding, whether
civil, criminal, administrative or investigative, including an action by or in the right of
the corporation, to the full extent permitted by any applicable portion of this Article that
shall not have been invalidated and to the full extent permitted by applicable law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;102(b)(7) of the DGCL, as amended, provides in regard to the limitation of liability
of directors and officers as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to the matters required to be set forth in the certificate of
incorporation by subsection (a)&nbsp;of this section, the certificate of incorporation may also
contain any or all of the following matters:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) A provision eliminating or limiting the personal liability of a director to the
corporation or its stockholders for monetary damages for breach of fiduciary duty as a
director, provided that such provision shall not eliminate or limit the liability of a
director: (i)&nbsp;For any breach of the director&#146;s duty of loyalty to the corporation or its
stockholders; (ii)&nbsp;for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law; (iii)&nbsp;under &#167; 174 of this title; or (iv)&nbsp;for any
transaction from which the director derived an improper personal benefit. No such provision
shall eliminate or limit the liability of a director for any act or omission occurring prior
to the date when such provision becomes effective. All references in this paragraph to a
director shall also be deemed to refer (x)&nbsp;to a member of the governing body of a
corporation which is not authorized to issue capital stock, and (y)&nbsp;to such other person or
persons, if any, who, pursuant to a provision of the certificate of incorporation in
accordance with &#167; 141(a) of this title, exercise or perform any of the powers or duties
otherwise conferred or imposed upon the board of directors by this title.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article&nbsp;Ninth of American Airlines, Inc.&#146;s certificates of incorporation provide in regard to
the limitation of liability of directors and officers as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NINTH: No director of the corporation shall be liable to the corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director, except for
liability (i)&nbsp;for any breach of the director&#146;s duty of loyalty to the corporation or its
shareholders, (ii)&nbsp;for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law, (iii)&nbsp;under Section&nbsp;174 of the Delaware General
Corporation Law, or (iv)&nbsp;for any transaction from which the director derived an improper
personal benefit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;American Airlines, Inc.&#146;s directors and officers are also insured against claims arising out
of the performance of their duties in such capacities.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July&nbsp;31, 2009, we issued and privately placed $276,400,000 aggregate principal amount of
13% 2009-2 Secured Notes due 2016, or the Notes. The Initial Purchasers for the Notes were Morgan
Stanley &#038; Co. Incorporated and Stifel, Nicolaus &#038; Company, Incorporated. The Notes were sold to
qualified institutional investors pursuant to Rule&nbsp;144A under the Securities Act, to persons
outside the United States in compliance with Regulation&nbsp;S under the Securities Act and to a limited
number of institutional &#147;accredited investors&#148; within the meaning of Rule&nbsp;501(a)(1), (2), (3)&nbsp;or
(7)&nbsp;under the Securities Act in compliance with Regulation&nbsp;D under the Securities Act . The sale of
the Notes to the Initial Purchasers was exempt from the registration requirements of the Securities
Act pursuant to Section&nbsp;4(2) thereof. The issue price of the Notes was 100% and we paid the
Initial Purchasers underwriting fees, discounts, commissions or other compensation of $3,316,800.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Exhibits.</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A list of Exhibits filed herewith is contained on the Exhibit&nbsp;Index and is incorporated herein
by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ITEM 17. UNDERTAKINGS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant hereby undertakes:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To include any prospectus required by section 10(a)(3) of the Securities
Act of 1933;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities would not exceed that which was registered) and any
deviation from the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than
a 20% change in the maximum aggregate offering price set forth in the &#147;Calculation
of Registration Fee&#148; table in the effective registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any material
change to such information in the registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offering therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That, for purposes of determining liability under the Securities Act of 1933 to any
purchaser:
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each prospectus filed pursuant to Rule 424(b) as part of the registration
statement relating to an offering, other than registration statements relying on
Rule&nbsp;430B or other than prospectuses filed in reliance on Rule&nbsp;430A, shall be deemed
to be part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a
registration statement or prospectus that is part of the registration statement or
made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such document
immediately prior to such date of first use.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) That, for the purpose of determining liability of the registrant under the
Securities Act of 1933 to any purchaser in the initial distribution of securities:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registrant undertakes that in a primary offering of securities of the
undersigned registrant pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the securities are
offered or sold to such purchaser by means of any of the following communications, the
undersigned registrant will be a seller to the purchaser and will be considered to offer or
sell such securities to such purchaser:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any preliminary prospectus or prospectus of the undersigned registrant
relating to the offering required to be filed pursuant to Rule&nbsp;424;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any free writing prospectus relating to the offering prepared by or on
behalf of the undersigned registrant or used or referred to by the undersigned
registrant;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any other communication that is an offer in the offering made by the
undersigned registrant to the purchaser.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Insofar as indemnification for liabilities arising under the Securities Act of 1933
may be permitted to directors, officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in the Act and will be governed
by the final adjudication of such issue.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-7<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="167"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, American Airlines, Inc. has duly
caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Fort Worth, State of Texas, on September&nbsp;3, 2009.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">AMERICAN AIRLINES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Gary F. Kennedy
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">GARY F. KENNEDY&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Senior Vice President, General Counsel<BR>

and Chief Compliance Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and
appoints Thomas W. Horton, Gary F. Kennedy and Kenneth W. Wimberly, and each of them severally, as
his or her true and lawful attorney-in-fact and agent, acting alone, with full power of
substitution and resubstitution, for him or her and in his or her name, place and stead, in any and
all capacities, to sign any or all amendments (including post-effective amendments) to this
registration statement, and to file the same, with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, granting unto said
attorney-in-fact full power and authority to do and perform each and every act and thing requisite
or necessary to be done in and about the premises, as such person, hereby ratifying and confirming
all that said attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully do
or cause to be done by virtue hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 10pt"><TD>&nbsp;</TD></TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Gerard J. Arpey
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chairman, President and
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Gerard J. Arpey
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Chief Executive Officer<BR>
(Principal Executive Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Thomas W. Horton
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Executive Vice President &#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Thomas W. Horton
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>Finance and Planning and <BR>

Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Principal Financial and Accounting Officer)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ John W. Backmann
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
John W. Bachmann
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ David L. Boren
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
David L. Boren
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->S-1<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Armando M. Codina
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Armando M. Codina
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Rajat K. Gupta
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Rajat K. Gupta
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Alberto Ibarg&#252;en
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Alberto Ibarg&#252;en
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Ann McLaughlin Korologos
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Ann McLaughlin Korologos
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Michael A. Miles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Michael A. Miles
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Philip J. Purcell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Philip J. Purcell
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Ray M. Robinson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Ray M. Robinson
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Judith Rodin
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Judith Rodin
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Matthew K. Rose
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Matthew K. Rose
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Roger T. Staubach
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">September&nbsp;3, 2009</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Roger T. Staubach
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->S-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="168"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Document</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restated Certificate of Incorporation of American Airlines, Inc., as amended, incorporated by
reference to American&#146;s report on Form&nbsp;10-Q for the quarter ended September&nbsp;30, 2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bylaws of American Airlines, Inc., amended January&nbsp;22, 2003, incorporated by reference to
American&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 2002.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture and Security Agreement, dated as of July&nbsp;31, 2009, between American Airlines, Inc.
and U.S. Bank Trust National Association, as Trustee.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Aircraft Security Agreement, among American Airlines, Inc., U.S. Bank Trust National
Association, as Trustee and U.S. Bank Trust National Association, as Security Agent.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of American Airlines, Inc. 13.0% 2009-2 Secured Note due 2016.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Rights Agreement, dated July&nbsp;31, 2009, between American Airlines, Inc. and
Morgan Stanley &#038; Co. Incorporated as representative of the several initial purchasers.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Gary F. Kennedy, Senior Vice President, General Counsel and Chief Compliance
Officer of American Airlines, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information Technology Services Agreement, dated July&nbsp;1, 1996, between American Airlines,
Inc. and The Sabre Group, Inc., incorporated by reference to Exhibit&nbsp;10.6 to The Sabre Group
Holdings, Inc.&#146;s Registration Statement on Form&nbsp;S-1, file number 333-09747. Confidential
treatment was granted as to a portion of this document.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Gerard J. Arpey, dated May&nbsp;21, 1998, incorporated by reference to Exhibit&nbsp;10.61 to AMR&#146;s
report on Form&nbsp;10-K for the year ended December&nbsp;31, 1998.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Peter M. Bowler, dated May&nbsp;21, 1998, incorporated by reference to Exhibit&nbsp;10.63 to AMR&#146;s
report on Form&nbsp;10-K for the year ended December&nbsp;31, 1998.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Daniel P. Garton, dated May&nbsp;21, 1998, incorporated by reference to Exhibit&nbsp;10.66 to AMR&#146;s
report on Form&nbsp;10-K for the year ended December&nbsp;31, 1998.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Monte E. Ford, dated November&nbsp;15, 2000, incorporated by reference to Exhibit&nbsp;10.74 to
AMR&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 2000.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Henry C. Joyner, dated January&nbsp;19, 2000, incorporated by reference to Exhibit&nbsp;10.74 to
AMR&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 1999.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and William K. Ris, Jr., dated October&nbsp;20, 1999, incorporated by reference to Exhibit&nbsp;10.79
to AMR&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 1999.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Amendment to Executive Termination Benefits Agreement dated January&nbsp;1, 2005,
incorporated by reference to Exhibit&nbsp;10.8 to American&#146;s report on Form&nbsp;10-K for the year
ended December&nbsp;31, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.9
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Gary F. Kennedy dated February&nbsp;3, 2003, incorporated by reference to Exhibit&nbsp;10.55 to
AMR&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 2002.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.10
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Robert W. Reding dated May&nbsp;20, 2003, incorporated by reference to Exhibit&nbsp;10.71 to AMR&#146;s
report on Form&nbsp;10-K for the year ended December&nbsp;31, 2003.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Document</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.11
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment agreement between AMR, American Airlines and William K. Ris, Jr. dated November
11, 1999, incorporated by reference to Exhibit&nbsp;10.73 to AMR&#146;s report on Form&nbsp;10-K for the
year ended December&nbsp;31, 2003.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.12
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment agreement between AMR, American Airlines and Robert W. Reding dated May&nbsp;21, 2003,
incorporated by reference to Exhibit&nbsp;10.94 to AMR&#146;s report on Form&nbsp;10-K for the year ended
December&nbsp;31, 2004.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.13
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amendment of employment agreement between AMR, American Airlines and Thomas W. Horton dated
July&nbsp;15, 2008, incorporated by reference to Exhibit&nbsp;10.5 to AMR&#146;s report on Form&nbsp;10-Q for the
quarterly period ended June&nbsp;30, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Jeffrey J. Brundage dated April&nbsp;1, 2004, incorporated by reference to Exhibit&nbsp;10.5 to
AMR&#146;s report on Form&nbsp;10-Q for the quarterly period ended March&nbsp;31, 2004.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Supplemental Executive Retirement Program for Officers of American Airlines, Inc., as amended
and restated as of January&nbsp;1, 2005, incorporated by reference to Exhibit&nbsp;10.16 to American&#146;s
report on Form&nbsp;10-K for the year ended December&nbsp;31, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.16
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Aircraft Purchase Agreement by and between American Airlines, Inc. and The Boeing Company,
dated October&nbsp;31, 1997, incorporated by reference to Exhibit&nbsp;10.48 to AMR Corporation&#146;s
report on Form&nbsp;10-K for the year ended December&nbsp;31, 1997. Confidential treatment was granted
as to a portion of this document.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.17
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement dated November&nbsp;17, 2004 and Purchase Agreement Supplements dated January&nbsp;11,
2005 between the Boeing Company and American Airlines, Inc., incorporated by reference to
Exhibit&nbsp;10.99 to AMR&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 2004. Confidential
treatment was granted as to a portion of these agreements.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.18
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Letter Agreement between the Boeing Company and American Airlines, Inc. dated May&nbsp;5, 2005,
incorporated by reference to Exhibit&nbsp;10.7 to AMR&#146;s report on Form&nbsp;10-Q for the quarterly
period ended June&nbsp;30, 2005. Confidential treatment was granted as to a portion of this
agreement.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.19
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trust Agreement Under Supplemental Retirement Program for Officers of American Airlines,
Inc., as amended and restated as of June&nbsp;1, 2007, incorporated by reference to Exhibit&nbsp;10.20
to American&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.20
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trust Agreement Under Supplemental Executive Retirement Program for Officers of American
Airlines, Inc Participating in the $uper $aver Plus Plan, as amended and restated as of June
1, 2007, incorporated by reference to Exhibit&nbsp;10.21 to American&#146;s report on Form&nbsp;10-K for the
year ended December&nbsp;31, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.21
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit Agreement dated as of December&nbsp;17, 2004, among American Airlines, Inc., AMR
Corporation, the Lenders from time to time party thereto, Citicorp USA, Inc., as
Administrative Agent for the Lenders, JPMorgan Chase Bank, N.A., as Syndication Agent and
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., as Joint Lead Arrangers and
Joint Book-Running Managers, incorporated by reference to Exhibit&nbsp;10.103 to AMR&#146;s report on
Form&nbsp;10-K for the year ended December&nbsp;31, 2004.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.22
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2009 Annual Incentive Plan for American, incorporated by reference to Exhibit&nbsp;99.1 to AMR&#146;s
current report on Form&nbsp;8-K dated January&nbsp;23, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.23
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated August&nbsp;17, 2007, incorporated by reference to Exhibit&nbsp;10.24 to American Airlines Inc.&#146;s
report on Form&nbsp;10-K for the year ended December&nbsp;31, 2007. Portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange Commission pursuant to a
confidential treatment request under Rule&nbsp;24b-2 of the Securities and Exchange Act of 1934,
as amended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.24
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated November&nbsp;20, 2007, incorporated by reference to Exhibit&nbsp;10.25 to American Airlines
Inc.&#146;s reported on Form&nbsp;10-K from the year ended December&nbsp;31, 2007. Portions of this Exhibit
have been omitted and filed separately with the Securities and Exchange Commission pursuant
to a confidential treatment request under Rule&nbsp;24b-2 of the Securities and Exchange Act of
1934, as amended.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Document</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.25
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated December&nbsp;10, 2007, incorporated by reference to Exhibit&nbsp;10.26 to American Airlines
Inc.&#146;s reported on Form&nbsp;10-K from the year ended December&nbsp;31, 2007. Portions of this Exhibit
have been omitted and filed separately with the Securities and Exchange Commission pursuant
to a confidential treatment request under Rule&nbsp;24b-2 of the Securities and Exchange Act of
1934, as amended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.26
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated January&nbsp;20, 2008, incorporated by reference to Exhibit&nbsp;10.27 to American Airlines
Inc.&#146;s reported on Form&nbsp;10-K from the year ended December&nbsp;31, 2007. Portions of this Exhibit
have been omitted and filed separately with the Securities and Exchange Commission pursuant
to a confidential treatment request under Rule&nbsp;24b-2 of the Securities and Exchange Act of
1934, as amended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.27
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated February&nbsp;11, 2008, incorporated by reference to Exhibit&nbsp;10.28 to American Airlines
Inc.&#146;s reported on Form&nbsp;10-K from the year ended December&nbsp;31, 2007. Portions of this
Exhibit have been omitted and filed separately with the Securities and Exchange Commission
pursuant to a confidential treatment request under Rule&nbsp;24b-2 of the Securities and Exchange
Act of 1934, as amended.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.28
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Agreement No.&nbsp;3219 between American Airlines, Inc. and The Boeing Company, dated as
of October&nbsp;15, 2008. Portions of this Exhibit have been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment request under
Rule&nbsp;24b-2 of the Securities and Exchange Act of 1934, as amended, incorporated by reference
to Exhibit&nbsp;10.138 to AMR&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.29
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Stock Appreciation Right Agreement (with awards effective July&nbsp;20, 2009 to executive
officers noted), incorporated by reference to Exhibit&nbsp;10.1 to American&#146;s report on Form&nbsp;10-Q
for the quarterly period ended June&nbsp;30, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.30
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of 2009 Deferred Share Award Agreement (with awards effective July&nbsp;20, 2009 to
executive officers noted), incorporated by reference to Exhibit&nbsp;10.2 to American&#146;s report on
Form&nbsp;10-Q for the quarterly period ended June&nbsp;30, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.31
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Performance Share Agreement under the 2009 &#151; 2011 Performance Share Plan for Officers
and Key Employees and the 2009 &#151; 2011 Performance Share Plan for Officers and Key Employees
(with awards effective July&nbsp;20, 2009 to executive officers noted) , incorporated by reference
to Exhibit&nbsp;10.3 to American&#146;s report on Form&nbsp;10-Q for the quarterly period ended June&nbsp;30,
2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.32
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">AMR Corporation 2009 Long Term Incentive Plan (approved by shareholders at AMR&#146;s May&nbsp;20, 2009
Annual Meeting of stockholders), incorporated by reference to Exhibit&nbsp;10.4 to American&#146;s
report on Form&nbsp;10-Q for the quarterly period ended June&nbsp;30, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.33
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Agreement No.&nbsp;1977 Supplement No.&nbsp;32 dated as of June&nbsp;9, 2009, incorporated by
reference to Exhibit&nbsp;10.1 to American&#146;s report on Form&nbsp;10-Q for the quarterly period ended
June&nbsp;30, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement regarding computation of ratio of earnings to fixed charges for each year in the
five-year period ended December&nbsp;31, 2008, incorporated by reference to Exhibit&nbsp;12 to
American&#146;s report on Form&nbsp;10-K for the year ended December&nbsp;31, 2008.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement regarding computation of ratio of earnings to fixed charges for the six months
ended June&nbsp;30, 2009 and 2008, incorporated by reference to Exhibit&nbsp;12 to American&#146;s report on
Form&nbsp;10-Q for the quarterly period ended June&nbsp;30, 2009.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Ernst &#038; Young LLP.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Gary F. Kennedy, Senior Vice President, General Counsel and Chief Compliance
Officer of American Airlines, Inc. (included in Exhibit&nbsp;5.1).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Aircraft Information Services, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of BK Associates, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Morten Beyer &#038; Agnew, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (contained on signature pages hereto).</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">25.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Statement of Eligibility of U.S. Bank Trust National Association, as Trustee, on Form&nbsp;T-1.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Document</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Letter of Transmittal.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Notice of Guaranteed Delivery.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Letter to Nominee.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Letter to Clients.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Instructions to Registered Holder and/or Book-Entry Transfer Participant from
Beneficial Owner.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
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sv1
Table of Contents
As filed with the Securities and Exchange Commission on September 3, 2009
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
AMERICAN AIRLINES, INC.
(Exact name of registrant as specified in its charter)
Delaware
4512
13-1502798
(State or other jurisdiction of incorporation or
(Primary Standard Industrial Classification Code
(I.R.S. Employer
organization)
Number)
Identification Number)
4333 Amon Carter Blvd.
Fort Worth, Texas 76155
(817) 963-1234
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)
Gary F. Kennedy, Esq.
Senior Vice President, General Counsel
and Chief Compliance Officer
American Airlines, Inc.
4333 Amon Carter Blvd.
Fort Worth, Texas 76155
(817) 963-1234
(Name, address, including zip code, and telephone number, including area code, of agent for service)
With a copy to:
John T. Curry, III, Esq.
Debevoise & Plimpton LLP
919 Third Avenue
New York, New York 10022
(212) 909-6000
Approximate date of commencement of proposed sale to the public:
As soon as practicable after
this Registration Statement becomes effective.
If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box.
o
If this Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering.
o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
o
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definition of "large
accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
þ
(Do not check if a smaller reporting
company)
Smaller reporting company
o
CALCULATION OF REGISTRATION FEE
Proposed
Proposed
Maximum
Maximum
Title of Each Class of
Amount to be
Offering Price
Aggregate
Amount of
Securities to be Registered
Registered
Per Unit(1)
Offering Price
Registration Fee(2)
13.0% 2009-2 Secured Notes due 2016
$
276,400,000
100%
$
276,400,000
$
15,424
(1)
Estimated solely for the purpose of calculating the registration fee in accordance with Rule
457(f) promulgated under the Securities Act.
(2)
The registration fee has been calculated under Rule 457(f)(2) of the Securities Act.
The registrant hereby amends this registration statement on such date or dates as may be
necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in
accordance with
Section 8(a)
of the Securities Act or until this registration statement shall
become effective on such date as the Commission, acting pursuant to said Section
8(a)
, may
determine.
Table of Contents
The information in this prospectus is not complete and may be changed. We may not complete this exchange offer or
issue these securities until the registration statement filed with the Securities and Exchange Commission is effective.
This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the
offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED SEPTEMBER 3, 2009
PROSPECTUS
American Airlines, Inc.
Offer to Exchange
$276,400,000 Outstanding 13.0% 2009-2 Secured Notes due 2016 for
$276,400,000 Registered 13.0% 2009-2 Secured Notes due 2016
American Airlines, Inc., is offering to exchange the Old Notes, as defined in this prospectus,
for a like principal amount of New Notes, as defined in this prospectus.
The terms of the New Notes are identical in all material respects to the terms of the Old
Notes, except that the New Notes are registered under the Securities Act of 1933, as amended, and
the transfer restrictions and registration rights relating to the Old Notes will not apply to the
New Notes, and except for certain related differences described in this prospectus.
No public market currently exists for the Old Notes or the New Notes.
The exchange offer will expire at      , New York City time, on      , 2009
(the "
Expiration Date
") unless we extend the Expiration Date. You should read the section called
"The Exchange Offer" for further information on how to exchange your Old Notes for New Notes.
See "Risk Factors" beginning on page 14 for a discussion of risk factors that you should
consider prior to tendering your Old Notes in the exchange offer and risk factors related to
ownership of the Notes.
Each broker-dealer that receives New Notes for its own account pursuant to the exchange offer
must acknowledge that it will deliver a prospectus in connection with any resale of such New Notes.
The letter of transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the
Securities Act. This prospectus, as it may be amended or supplemented from time to time, may be
used by a broker-dealer in connection with resales of New Notes received in exchange for Old Notes
where such Old Notes were acquired by such broker-dealer as a result of market-making activities or
other trading activities. We have agreed that, for a period of 90 days after the Expiration Date,
we will make this prospectus available to any broker-dealer for use in connection with any such
resale. See "Plan of Distribution."
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is            , 2009.
TABLE OF CONTENTS
Page
FORWARD-LOOKING STATEMENTS
ii
PROSPECTUS SUMMARY
1
American Airlines, Inc.
1
Summary of Transaction
1
Summary of Terms of Notes
3
The Aircraft
4
Loan to Aircraft Value Ratios
5
Summary of the Terms of the Exchange Offer
7
The Notes
10
Ratio of Earnings to Fixed Charges
13
RISK FACTORS
14
Risk Factors Relating to the Company
14
Risk Factors Relating to the Notes and the Exchange Offer
22
THE EXCHANGE OFFER
27
Terms of the Exchange Offer; Period for Tendering Old Notes
27
Procedures for Tendering Old Notes
28
Acceptance of Old Notes for Exchange; Delivery of New Notes
30
Book-Entry Transfer
30
Guaranteed Delivery Procedures
31
Withdrawal Rights
31
Conditions to the Exchange Offer
32
Exchange Agent
33
Fees and Expenses
33
Transfer Taxes
33
Resale of the New Notes
33
USE OF PROCEEDS
35
DESCRIPTION OF THE NOTES
36
General
36
Payments of Principal and Interest
36
Redemption
37
Collateral
39
Loan to Value Ratios of Notes
40
Events of Default
41
Remedies
42
Post Default Appraisals
44
Priority of Distributions
44
Reports
45
Modifications and Waiver of the Indenture and Certain Other Operative Documents
45
Merger, Consolidation and Transfer of Assets
47
Book-Entry, Delivery and Form
48
The Notes
48
DTC
48
Indemnification
52
Certain Provisions of the Aircraft Security Agreement
52
Governing Law
57
The Trustee and Security Agent
57
DESCRIPTION OF THE AIRCRAFT AND THE APPRAISALS
58
The Aircraft
58
The Appraisals
58
EXCHANGE OFFER; REGISTRATION RIGHTS; RATINGS
60
CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
62
Exchange of Old Notes for New Notes
62
Certain Additional Payments
63
U.S. Holders
63
Non-U.S. Holders
64
CERTAIN ERISA CONSIDERATIONS
66
General
66
Prohibited Transaction Exemptions
66
Special Considerations Applicable to Insurance Company General Accounts
67
PLAN OF DISTRIBUTION
68
VALIDITY OF THE NEW NOTES
69
EXPERTS
69
WHERE YOU CAN FIND MORE INFORMATION
69
INDEX OF TERMS
Appendix I
APPRAISAL LETTERS
Appendix II
ALLOCABLE PORTION OF THE NOTES AND LOAN TO VALUE RATIOS PER AIRCRAFT
Appendix III
EX-4.1
EX-4.2
EX-4.3
EX-4.4
EX-5.1
EX-23.1
EX-23.3
EX-23.4
EX-23.5
EX-25.1
EX-99.1
EX-99.2
EX-99.3
EX-99.4
EX-99.5
This prospectus incorporates important business and financial information about us that is not
included in or delivered with this prospectus. This information is available without charge to you
upon written or oral request. If you would like a copy of any of this information, please submit
your request to American Airlines, Inc., 4333 Amon Carter Boulevard, Mail Drop 5651, Fort Worth,
Texas 76155, Attention: Investor Relations (Telephone: 817-967-2970).
i
Table of Contents
In order to obtain timely delivery of any information that you request, you must submit your
request no later than
, 2009, which is five business days before the date the
exchange offer is scheduled to expire.
You should rely only on the information contained in this prospectus and the documents
incorporated by reference in this prospectus or to which we have referred you. We have not
authorized anyone to provide you with different information. If anyone provides you with different
or inconsistent information, you should not rely on it. This prospectus does not constitute an
offer to sell, or a solicitation of an offer to purchase, the securities offered by this prospectus
in any jurisdiction to or from any person to whom or from whom it is unlawful to make such offer or
solicitation of an offer in such jurisdiction. You should not assume that the information contained
in this prospectus or any document incorporated herein by reference is accurate as of any date
other than the date of this prospectus or the date of such other document, as the case may be.
Also, you should not assume that there has been no change in the affairs of American since the date
of this prospectus.
FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference contain various "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the
"
Securities Act
") and Section 21E of the Securities Exchange Act of 1934, as amended (the
"
Exchange Act
"), which represent American's expectations or beliefs concerning future events. When
used in this prospectus and in documents incorporated by reference, the words "expects," "plans,"
"anticipates," "indicates," "believes," "forecast," "guidance," "outlook," "may," "will," "should,"
"seeks," "targets" and similar expressions are intended to identify forward-looking statements.
Similarly, statements that describe our objectives, plans or goals are forward-looking statements.
Forward-looking statements include, without limitation, our expectations concerning operations and
financial conditions, including changes in capacity, revenues, and costs; future financing plans
and needs; the amounts of our unencumbered assets and other sources of liquidity; fleet plans;
overall economic and industry conditions; plans and objectives for future operations; regulatory
approvals and actions, including our application for antitrust immunity with other
one
world
alliance members; and the impact on us of our results of operations in recent years and the
sufficiency of our financial resources to absorb that impact. Other forward-looking statements
include statements which do not relate solely to historical facts, such as, without limitation,
statements which discuss the possible future effects of current known trends or uncertainties, or
which indicate that the future effects of known trends or uncertainties cannot be predicted,
guaranteed or assured. All forward-looking statements in this prospectus and the documents
incorporated by reference herein and therein are based upon information available to us on the date
of this prospectus or such document. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future events, or otherwise.
Guidance given in this prospectus and the documents incorporated by reference herein and therein
regarding capacity, fuel consumption, fuel prices, fuel hedging and unit costs, and statements
regarding expectations of regulatory approval of our application for antitrust immunity with other
one
world members, are forward-looking statements.
Forward-looking statements are subject to a number of factors that could cause our actual
results to differ materially from our expectations. The following factors, in addition to those
discussed under the caption "Risk Factors" in this prospectus and other possible factors not
listed, could cause our actual results to differ materially from those expressed in forward-looking
statements: our materially weakened financial condition, resulting from our significant losses in
recent years; weaker demand for air travel and lower investment asset returns resulting from the
severe global economic downturn; our need to raise substantial additional funds and our ability to
do so on acceptable terms; our ability to generate additional revenues and reduce our costs;
continued high and volatile fuel prices and further increases in the price of fuel, and the
availability of fuel; our substantial indebtedness and other obligations; our ability to satisfy
existing financial or other covenants in certain of our credit agreements; changes in economic and
other conditions beyond our control, and the volatile results of our operations; the fiercely and
increasingly competitive business environment we face; potential industry consolidation and
alliance changes; competition with reorganized carriers; low fare levels by historical standards
and our reduced pricing power;
changes in our corporate or business strategy; government regulation of our business;
conflicts overseas or terrorist attacks; uncertainties with respect to our international
operations; outbreaks of a disease (such as SARS, avian flu or the H1N1 virus) that affects travel
behavior; labor costs that are higher than those of our competitors; uncertainties with respect to
our relationships with unionized and other employee work groups; increased insurance costs and
ii
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potential reductions of available insurance coverage; our ability to retain key management
personnel; potential failures or disruptions of our computer, communications or other technology
systems; losses and adverse publicity resulting from any accident involving our aircraft; changes
in the price of AMR's common stock; and our ability to reach acceptable agreements with third
parties. Additional information concerning these and other factors is contained in our and AMR's
filings with the Securities and Exchange Commission (the "
SEC
"), including but not limited to our
and AMR's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009
and our and AMR's Annual Reports on Form 10-K for the year ended December 31, 2008 (and, in the
case of AMR, as updated by AMR's Current Report on Form 8-K filed on April 21, 2009).
iii
Table of Contents
PROSPECTUS SUMMARY
This summary highlights basic information about us and this exchange offer. Because it is a
summary, it does not contain all of the information that you should consider before tendering your
Old Notes in the Exchange Offer. You should read this entire prospectus carefully, including the
section entitled
"
Risk Factors" in this prospectus, as well as the materials filed with the SEC
that are considered to be a part of this prospectus before making an investment decision. See
"
Where You Can Find More Information" in this prospectus. We have given certain capitalized terms
specific meanings for purposes of this prospectus. The "Index of Terms" attached as Appendix I to
this prospectus lists the page in this prospectus on which we have defined each such term. Unless
otherwise indicated, "we," "us," "our" and similar terms, as well as references to "American" or
the "Company, " refer to American Airlines, Inc. The term "you" or the "Noteholders" refers to
holders of the Notes.
American Airlines, Inc.
American, the principal subsidiary of AMR Corporation ("
AMR
"), was founded in 1934. All of
American's common stock is owned by AMR. At the end of 2008, American provided scheduled jet
service to approximately 150 destinations throughout North America, the Caribbean, Latin America,
Europe and Asia.
In addition, American has capacity purchase agreements with AMR Eagle and an independently
owned regional airline, which does business as the "AmericanConnection" (the "
AmericanConnection®
carrier
")
.
The AMR Eagle and AmericanConnection® carrier provide connecting service from ten of
American's high-traffic cities to smaller markets throughout the United States, Canada, Mexico and
the Caribbean.
American, AMR Eagle, and the AmericanConnection® airlines serve 250 cities in 40 countries
with, on average, more than 3,400 daily flights. The combined network fleet numbers approximately
900 aircraft. American is also a founding member of
one
world® Alliance, which enables member
airlines to offer its customers more services and benefits than any member airline can provide
individually. These services include a broader route network, opportunities to earn and redeem
frequent flyer miles across the combined
one
world network and more airport lounges. Together,
one
world members serve nearly 700 destinations in over 150 countries, with 8,500 daily departures.
American is also one of the largest scheduled air freight carriers in the world, providing a wide
range of freight and mail services to shippers throughout its system onboard American's passenger
fleet.
The postal address for American's principal executive offices is 4333 Amon Carter Boulevard,
Fort Worth, Texas 76155 (Telephone: 817-963-1234). American's Internet address is
http://www.aa.com
. Information on American's website is not incorporated into this prospectus and
is not a part of this prospectus.
Summary of Transaction
The Aircraft are currently subject to the liens of separate indentures (the "
1999-1
Indentures
") as part of an enhanced equipment trust certificate transaction entered into by
American in 1999 (the "
1999-1 EETC
"). Final distributions on the equipment notes in the 1999-1
EETC are scheduled to be made on October 15, 2009 (the "
1999-1 Maturity Date
"), and the aggregate
amount of principal scheduled to be paid under the 1999-1 EETC on the 1999-1 Maturity Date is
$401,494,000, of which $313,130,404.20 relates to the Aircraft. American deposited the entire
proceeds from the sale of the Old Notes with the Trustee under the Indenture and Security Agreement
dated July 31, 2009 (the "
Indenture
") between American and U.S. Bank Trust National Association, as
trustee (the "
Trustee
") to be held by the Trustee as cash collateral (the "
Cash Collateral
") for
American's obligations under the Notes. On and subject to the terms and conditions of the
Indenture, following the payment in full of the equipment notes issued under the 1999-1 EETC and
the release of the liens of the 1999-1 Indentures on each of the Aircraft, American has agreed to
subject the Aircraft to the lien of an Aircraft Security Agreement (the "
Aircraft Security
Agreement
") to be entered into among American, the Trustee and U.S. Bank Trust National
Association, as security agent (the "
Security Agent
"), on or prior to November 15, 2009 (the
"
Cut-Off Date
"). Upon the subjection of an Aircraft to the lien of the Aircraft Security
Agreement, an amount of the Cash Collateral equal to the "Allocable Portion" (as described herein)
of the Notes attributable to such Aircraft will be released to American so long as no Event of
Default shall have occurred and be continuing.
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If fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement for any reason on or prior to the Cut-Off Date, on January 5, 2010 (the "
Cut-Off
Redemption Date
"), American will be required to redeem the Allocable Portion of the Notes
attributable to each such Aircraft not subjected to the lien of the Aircraft Security Agreement.
The redemption price will be the Allocable Portion of the Notes attributable to each such Aircraft,
together with accrued and unpaid interest on such Allocable Portion, and the Make-Whole Amount (if
any) with respect to such Allocable Portion. Notwithstanding the foregoing, no Make-Whole Amount
will be payable in the case of a redemption because of the occurrence of an event that would
constitute an "Event of Loss" under the applicable 1999-1 Indenture, whether or not such 1999-1
Indenture is in full force or effect (each such event, a "
1999-1 Event of Loss
") with respect to
such Aircraft (or an event that would constitute such a 1999-1 Event of Loss but for the
requirement that notice be given or time elapse or both). Upon any such partial redemption with
respect to an Aircraft, the amount of the Cash Collateral equal to the Allocable Portion of the
Notes attributable to such Aircraft will be released to American so long as no Event of Default
shall have occurred and be continuing, and the obligation of American thereafter to make the
scheduled interest and principal payments with respect to such Allocable Portion of the Notes will
cease.
The investment earnings on all Cash Collateral shall be paid over to American on the last day
on which any Cash Collateral with respect to the Allocable Portion of the Notes attributable to any
Aircraft is released to American. The amount of Cash Collateral with respect to the Allocable
Portion of the Notes attributable to each Aircraft to be released in connection with the subjection
of such Aircraft to the lien of the Aircraft Security Agreement or in connection with a partial
redemption as discussed in the preceding paragraph is set forth under
"— The Aircraft" in this prospectus summary. American will use any Cash Collateral and any
investment earnings thereon released to it to reimburse itself in part for the repayment of the
equipment notes issued under the 1999-1 EETC.
2
Table of Contents
Summary of Terms of Notes
Principal amount
$276,400,000
Initial loan to Aircraft value ratio
(cumulative)
(1)(2)
65.0%
Expected maximum loan to Aircraft value ratio
(cumulative)
(2)
65.0%
Expected principal distribution window (in years
from Issuance Date)
0.5-7.0
Initial average life
(in years from Issuance Date)
4.3
Payment Dates
February 1 and August 1
Scheduled Maturity Date
August 1, 2016
Section 1110 protection
(3)
Yes
(1)
This percentage is calculated as of the Cut-Off Date and assumes that all of the Aircraft
have been subjected to the lien of the Aircraft Security Agreement as of such date. In
calculating this percentage, we have assumed that the aggregate appraised value of the
Aircraft is $425,233,333 as of such date. The appraisal value is only an estimate and
reflects certain assumptions. See "Description of the Aircraft and the Appraisals — The
Appraisals."
(2)
See "Loan to Aircraft Value Ratios of Notes" in this prospectus summary for the method and
assumptions we used in calculating the loan to Aircraft value ratios and a discussion of
certain ways that such loan to Aircraft value ratios could change.
(3)
American deposited the entire proceeds from the sale of the Old Notes with the Trustee to be
held as Cash Collateral for American's obligations under the Notes until the date on which
American has repaid the 1999-1 EETC with respect to each Aircraft and subjected each such
Aircraft to the lien of the Aircraft Security Agreement. There will be Section 1110
protection with respect to any Aircraft subjected to the lien of the Aircraft Security
Agreement but not with respect to the Cash Collateral. See "Risk Factors — Risk Factors
Relating to the Notes and the Exchange Offer — Payment on the Notes and the ability to
exercise remedies with respect to certain collateral may be restricted in the case of a
bankruptcy of American."
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Table of Contents
The Aircraft
The Notes are expected to be secured by a lien on each of 12 Boeing aircraft, consisting of
nine Boeing 737-823 aircraft, one Boeing 767-323ER aircraft and two Boeing 777-223ER aircraft
delivered new to American from May 1999 to September 1999 (each, an "
Aircraft
" and, collectively,
the "
Aircraft
"). All of the Aircraft are being operated by American. See "Description of the
Aircraft and the Appraisals" for a description of each Aircraft.
On and subject to the terms and conditions of the Indenture, American has agreed to enter into
a secured debt financing with respect to each Aircraft on or prior to the Cut-Off Date. Set forth
below is certain information about the Aircraft expected to secure the Notes:
Allocable Portion
of the Notes on
Registration
Manufacturer's
the Cut-Off
Appraised
Aircraft Type
Number
Serial Number
Delivery Date
Date
(1)
Value
(2)
Boeing 737-823
N909AN
29511
5/19/1999
$
17,069,000
$
26,260,000
Boeing 737-823
N910AN
29512
5/26/1999
17,069,000
26,260,000
Boeing 737-823
N912AN
29513
6/25/1999
17,153,000
26,390,000
Boeing 737-823
N914AN
29515
7/19/1999
17,238,000
26,520,000
Boeing 737-823
N915AN
29516
7/28/1999
17,238,000
26,520,000
Boeing 737-823
N916AN
29517
8/6/1999
17,316,000
26,640,000
Boeing 737-823
N917AN
29518
8/27/1999
17,316,000
26,640,000
Boeing 737-823
N918AN
29519
9/10/1999
17,400,000
26,770,000
Boeing 737-823
N919AN
29520
9/15/1999
17,400,000
26,770,000
Boeing 767-323ER
N399AN
29606
5/28/1999
26,097,000
40,150,000
Boeing 777-223ER
N778AN
29587
6/21/1999
47,552,000
73,156,667
Boeing 777-223ER
N779AN
29955
6/27/1999
47,552,000
73,156,667
Total
$
276,400,000
$
425,233,333
(1)
The Allocable Portion of the Notes on the Cut-Off Date set forth above with respect to each
Aircraft represents the portion of the principal amount of the Notes attributable to such
Aircraft as of such date. The Allocable Portion of the Notes with respect to each Aircraft
will not change from the amount set forth above during the period from the Issuance Date to
the first Payment Date unless any Allocable Portion of the Notes is redeemed as set forth
under "Description of the Notes — Redemption."
(2)
The appraised value of each Aircraft set forth above is the lesser of the average and median
appraised value of such Aircraft as appraised by three independent appraisal and consulting
firms. Such appraisals indicate appraised current market value of such Aircraft at or around
the time of such appraisals. The appraisers based their appraisals on varying assumptions
(which may not reflect accurately current market conditions) and methodologies. See
"Description of the Aircraft and the Appraisals — The Appraisals." An appraisal is only an
estimate of value and you should not rely on any appraisal as a measure of realizable value.
See "Risk Factors — Risk Factors Relating to the Notes and the Exchange Offer — Appraisals
should not be relied upon as a measure of realizable value of the Aircraft."
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Table of Contents
Loan to Aircraft Value Ratios
The following table provides loan to Aircraft value ratios ("
LTVs
") for the Notes as of the
Cut-Off Date and each Payment Date, assuming that all of the Aircraft have been subjected to the
lien of the Aircraft Security Agreement on or prior to the Cut-Off Date. See "— Summary of
Transaction and Use of Proceeds" in this prospectus summary. The table is not a forecast or
prediction of expected or likely LTVs, but simply a mathematical calculation based upon one set of
assumptions. See "Risk Factors — Risk Factors Relating to the Notes and the Exchange Offer —
Appraisals should not be relied upon as a measure of realizable value of the Aircraft."
We compiled the following table on an aggregate basis. The Notes are issued pursuant to the
Indenture, and all of the Aircraft, subject to the terms and conditions of the Indenture, are
expected to be subjected to the lien of the Aircraft Security Agreement as security for American's
obligations on the Notes issued under the Indenture. This means that all proceeds realized from
the sale of any Aircraft or other exercise of default remedies will be available to cover any
shortfalls on the Notes. The relevant LTVs in a default situation for the Notes would depend on
various factors, including the extent to which the debtor or trustee in bankruptcy agrees to
perform American's obligations under the Indenture and the Aircraft Security Agreement. Therefore,
the following LTVs are presented for illustrative purpose only.
Aggregate
Assumed
Principal
Date
Aircraft Value
(1)
Balance
(2)
LTV%
(3)
Cut-Off Date
$
425,233,333
$
276,400,000
65.0
%
February 1, 2010
416,121,190
257,994,870
62.0
August 1, 2010
407,009,048
240,135,070
59.0
February 1, 2011
397,896,905
222,821,999
56.0
August 1, 2011
388,784,762
206,055,656
53.0
February 1, 2012
379,672,619
189,836,042
50.0
August 1, 2012
370,560,476
174,163,156
47.0
February 1, 2013
361,448,333
159,036,999
44.0
August 1, 2013
352,336,190
144,457,570
41.0
February 1, 2014
343,224,048
130,424,870
38.0
August 1, 2014
334,111,905
116,938,898
35.0
February 1, 2015
321,962,381
103,027,693
32.0
August 1, 2015
309,812,857
89,845,460
29.0
February 1, 2016
297,663,333
77,392,198
26.0
August 1, 2016
285,513,810
—
0.0
(1)
In calculating the aggregate Assumed Aircraft Value, we assumed that the appraised value of
each Aircraft determined as described under "Description of the Aircraft and the Appraisals"
declines in accordance with the Depreciation Assumption described under "Description of the
Notes — Loan to Value Ratios of Notes." Other rates or methods of depreciation could result
in materially different LTVs. We cannot assure you that the depreciation rate and method
assumed for purposes of the above table are the ones most likely to occur or predict the
actual future value of any Aircraft. See "Risk Factors — Risk Factors Relating to the Notes
and the Exchange Offer — Appraisals should not be relied upon as a measure of realizable value
of the Aircraft."
(2)
The "principal balance" indicates, as of any date, after giving effect to any principal
payments scheduled to be made on such date, the portion of the original principal amount of
the Notes that has not been paid to the Noteholders and assumes that all of the Aircraft have
been subjected to the lien of the Aircraft Security Agreement as of the Cut-Off Date.
(3)
We obtained the LTVs for the Cut-Off Date and each Payment Date by dividing (
i
) the expected
outstanding principal balance of the Notes after giving effect to any principal payment
scheduled to be made on such date,
5
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by (
ii
) the aggregate Assumed Aircraft Value of the
Aircraft on such date based on the assumptions described above. The outstanding principal
balances and LTVs will change if any Allocable Portion of the Notes is redeemed as set forth
under "Description of the Notes — Redemption" or if a default in payment of principal on the
Notes occurs.
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Table of Contents
Summary of the Terms of the Exchange Offer
The Notes
On July 31, 2009 (the "
Issuance Date
"), we issued and
privately placed $276,400,000 aggregate principal amount of
13% 2009-2 Secured Notes due 2016 pursuant to exemptions
from the registration requirements of the Securities Act.
The Initial Purchasers for the Old Notes were Morgan
Stanley & Co. Incorporated and Stifel, Nicolaus & Company,
Incorporated (the "
Initial Purchasers
").
When we use the term "
Old Notes
" in this prospectus, we
mean the 13% 2009-2 Secured Notes due 2016 which were
privately placed with the Initial Purchasers on July 31,
2009, and were not registered with the SEC.
When we use the term "
New Notes
" in this prospectus, we
mean the 13% 2009-2 Secured Notes due 2016 registered with
the Commission and offered hereby in exchange for the Old
Notes.
When we use the term "
Notes
" in this prospectus, the
related discussion applies to both the Old Notes and the
New Notes.
The terms of the New Notes are identical in all material
respects to the terms of the Old Notes, except that the New
Notes are registered under the Securities Act and will not
be subject to restrictions on transfer, will bear a
different CUSIP and ISIN number than the Old Notes, will
not entitle their holders to registration rights and will
be subject to terms relating to book-entry procedures and
administrative terms relating to transfers that differ from
those of the Old Notes.
The Exchange Offer
You may exchange Old Notes for a like principal amount of
New Notes. The consummation of the exchange offer is not
conditioned upon any minimum or maximum aggregate principal
amount of Old Notes being tendered for exchange.
Resale of New Notes
We believe the New Notes that will be issued in the
exchange offer may be resold by most investors without
compliance with the registration and prospectus delivery
provisions of the Securities Act, subject to certain
conditions. You should read the discussion under the
heading "The Exchange Offer" for further information
regarding the exchange offer and resale of the New Notes.
7
Table of Contents
Registration Rights Agreement
We have undertaken the exchange offer pursuant to the terms
of the Registration Rights Agreement we entered into with
the Initial Purchasers, dated July 31, 2009 (the
"
Registration Rights Agreement
"). Pursuant to the
Registration Rights Agreement, American agreed, at no cost
to the Noteholders, (
a
) either to consummate an exchange
offer for the Notes pursuant to an effective registration
statement, or to cause resales of the Notes to be
registered under the Securities Act (the "
Registration
Condition
"), and (
b
) to obtain ratings for the Notes from
each of Moody's and Standard & Poor's (the "
Rating
Condition
"). If either the Registration Condition or the
Rating Condition is not satisfied on or before December 31,
2009, the interest rate on the Notes will permanently
increase by 1.00% starting on January 1, 2010. See "The
Exchange Offer" and "Exchange Offer; Registration Rights;
Ratings."
Consequences of Failure to Exchange
the Old Notes
You will continue to hold Old Notes that remain subject to
their existing transfer restrictions if:
•
you do not tender your Old Notes; or
•
you tender your Old Notes and they are not accepted
for exchange.
We will have no obligation to register the Old Notes after
we consummate the exchange offer. See "The Exchange
Offer—Terms of the Exchange Offer; Period for Tendering Old
Notes."
Expiration Date
The exchange offer will expire at     
 , New York
City time, on     , 2009 (the "
Expiration
Date
"), unless we extend it, in which case Expiration Date
means the latest date and time to which the exchange offer
is extended.
Conditions to the Exchange Offer
The exchange offer is subject to several customary
conditions. We will not be required to accept for exchange,
or to issue New Notes in exchange for, any Old Notes, and
we may terminate or amend the exchange offer, if we
determine in our reasonable judgment at any time before the
Expiration Date that the exchange offer would violate
applicable law or any applicable interpretation of the
staff of the SEC. The foregoing conditions are for our sole
benefit and may be waived by us at any time. In addition,
we will not accept for exchange any Old Notes tendered, and
no New Notes will be issued in exchange for any such Old
Notes, if at any time any stop order is threatened or in
effect with respect to:
•
the registration statement of which this prospectus
constitutes a part; or
•
the qualification of the Indenture under the Trust
Indenture Act of 1939, as amended (the "
Trust Indenture
Act
").
See "The Exchange Offer—Conditions to the Exchange Offer."
We reserve the right to terminate or amend the exchange
offer at any time prior to the Expiration Date upon the
occurrence of any of the foregoing events.
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Table of Contents
Procedures for Tendering Old Notes
If you wish to accept the exchange offer, you must tender
your Old Notes and do the following on or prior to the
Expiration Date, unless you follow the procedures described
under "The Exchange Offer—Guaranteed Delivery Procedures:"
•
if Old Notes are tendered in accordance with the
book-entry procedures described under "The Exchange
Offer—Book-Entry Transfer," transmit an Agent's Message to
the Exchange Agent through the Automated Tender Offer
Program ("A
TOP
") of The Depositary Trust Company ("
DTC
"),
or
•
transmit a properly completed and duly executed
letter of transmittal, or a facsimile copy thereof, to the
Exchange Agent, including all other documents required by
the letter of transmittal.
See "The Exchange Offer—Procedures for Tendering Old Notes."
Guaranteed Delivery Procedures
If you wish to tender your Old Notes, but cannot properly
do so prior to the Expiration Date, you may tender your Old
Notes according to the guaranteed delivery procedures set
forth under "The Exchange Offer—Guaranteed Delivery
Procedures."
Withdrawal Rights
Tenders of Old Notes may be withdrawn at any time prior to
        , New York City time, on the Expiration Date.
To withdraw a tender of Old Notes, a notice of withdrawal
must be actually received by the Exchange Agent at its
address set forth in "The Exchange Offer—Exchange Agent"
prior to        , New York City time, on the
Expiration Date. See "The Exchange Offer—Withdrawal
Rights."
Acceptance of Old Notes and Delivery
of New Notes
Except in some circumstances, any and all Old Notes that
are validly tendered in the exchange offer prior to
        , New York City time, on the Expiration Date will be
accepted for exchange. The New Notes issued pursuant to the
exchange offer will be delivered promptly after such
acceptance. See "The Exchange Offer—Acceptance of Old Notes
for Exchange; Delivery of New Notes."
Certain U.S. Federal Tax Considerations
The exchange of the Old Notes for the New Notes will not
constitute a taxable exchange for U.S. federal income tax
purposes. See "Certain U.S. Federal Income Tax
Considerations."
Exchange Agent
U.S. Bank National Association
is serving as the
Exchange Agent (the "
Exchange Agent
").
9
Table of Contents
The Notes
The forms and terms of the New Notes are the same in all material respects as the form and
terms of the Old Notes, except that the New Notes:
•
are registered under the Securities Act and will not be subject to restrictions on
transfer;
•
will bear a different CUSIP and ISIN number than the Old Notes;
•
will not entitle their holders to registration rights; and
•
will be subject to terms relating to book-entry procedures and administrative terms
relating to transfers that differ from those of the Old Notes.
Issuer
American Airlines, Inc.
The Notes
$276,400,000 principal amount of 13.0% 2009-2 Secured Notes due 2016
Trustee and Security Agent
U.S. Bank Trust National Association
Principal
Payments of principal on the Notes will be made on each Payment Date as
follows:
Payment Date
Principal Payment Amount
February 1, 2010
$
18,405,129.71
August 1, 2010
17,859,800.03
February 1, 2011
17,313,071.43
August 1, 2011
16,766,342.88
February 1, 2012
16,219,614.32
August 1, 2012
15,672,885.72
February 1, 2013
15,126,157.20
August 1, 2013
14,579,428.57
February 1, 2014
14,032,700.21
August 1, 2014
13,485,971.65
February 1, 2015
13,911,204.82
August 1, 2015
13,182,233.36
February 1, 2016
12,453,261.99
August 1, 2016
77,392,198.11
Scheduled Maturity Date
August 1, 2016
Interest
The Notes bear interest at the rate of 13.0% per annum. If either the
Registration Condition or the Rating Condition is not satisfied on or
before December 31, 2009, the interest rate on the Notes will permanently
increase by 1.00% starting on January 1, 2010. See "Exchange Offer;
Registration Rights; Ratings." Interest on the Notes accrues from the
most recent date to which interest has been paid or, if no interest has
been paid, from the Issuance Date. Interest on the Notes is calculated
on the basis of a 360-day year consisting of twelve 30-day months.
Interest is payable on the Notes on each Payment Date, commencing on
February 1, 2010.
Payment Dates
February 1 and August 1, commencing on February 1, 2010.
Record Dates
The fifteenth day preceding the related Payment Date.
Collateral
Initially, the Notes are secured by the Cash Collateral. Cash Collateral
may be released from time to time as Aircraft are subjected to the lien
of the Aircraft Security Agreement as set forth under "Description of the
Notes — Collateral — Release of Cash Collateral."
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Table of Contents
After the 1999-1 Maturity Date and the release of the Aircraft from the
liens created under the 1999-1 Indentures, subject to the terms and
conditions of the Indenture, the Notes are expected to be secured by a
lien on each Aircraft under the Aircraft Security Agreement. The pool of
Aircraft is expected to consist of 12 Boeing aircraft owned by American,
consisting of nine Boeing 737-823 aircraft, one Boeing 767-323ER aircraft
and two Boeing 777-223ER aircraft, each of which was delivered new to
American during the period from May 1999 to September 1999. The lien on
the Aircraft under the Aircraft Security Agreement may be released from
time to time as set forth under "Description of the Notes — Redemption."
Redemption
Mandatory Redemption
. If fewer than all of the Aircraft have been
subjected to the lien of the Aircraft Security Agreement for any reason
on or prior to the Cut-Off Date, on the Cut-Off Redemption Date, American
will be required to redeem the Allocable Portion of the Notes
attributable to each such Aircraft not subjected to the lien of the
Aircraft Security Agreement. The redemption price will be the Allocable
Portion of the Notes attributable to each such Aircraft, together with
accrued and unpaid interest on such Allocable Portion, and the Make-Whole
Amount (if any) with respect to such Allocable Portion. Notwithstanding
the foregoing, no Make-Whole Amount will be payable in the case of a
redemption because of the occurrence of a 1999-1 Event of Loss with
respect to such Aircraft (or an event that would constitute a 1999-1
Event of Loss but for the requirement that notice be given or time elapse
or both). Upon any such partial redemption with respect to an Aircraft,
the amount of the Cash Collateral equal to the Allocable Portion of the
Notes attributable to such Aircraft will be released to American so long
as no Event of Default shall have occurred and be continuing, and the
obligation of American thereafter to make the scheduled interest and
principal payments with respect to such Allocable Portion of the Notes
will cease. The investment earnings on all such Cash Collateral shall be
paid over to American on the last day on which any Cash Collateral with
respect to the Allocable Portion of the Notes attributable to any
Aircraft is released to American.
In addition, if an Event of Loss occurs with respect to an Aircraft that
has been subjected to the lien of the Aircraft Security Agreement,
American will either:
•
substitute for such Aircraft under the Aircraft Security
Agreement an aircraft meeting certain requirements; or
•
redeem the Allocable Portion of the Notes attributable such
Aircraft.
The redemption price in such case will be the Allocable Portion of the
Notes attributable to such Aircraft, together with accrued and unpaid
interest on such Allocable Portion, but without any premium. Following
such partial redemption, the lien on such Aircraft under the Aircraft
Security Agreement will be released and such Aircraft will no longer
secure the amounts that may be owing under the Indenture. In addition,
the obligation of American thereafter to make the scheduled interest and
principal payments with respect to such Allocable Portion of the Notes
will cease.
See "Description of the Notes — Redemption — Mandatory Redemption" for
further details. The Allocable Portion of the Notes with respect to each
Aircraft on the Cut-Off Date and each Payment Date is set forth in
Appendix
III. For any date before the first Payment Date, the Allocable
Portion of the Notes with respect to each Aircraft will be the amount
specified in Appendix
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III for the Cut-Off Date. For any date after the
first Payment Date, other than a Payment Date, the Allocable Portion of
the Notes with respect to each Aircraft will be the amount specified in
Appendix III for the Payment Date that immediately precedes such date.
Optional Redemption
. American may elect to redeem all, but not less than
all, of the Notes at any time prior to the Scheduled Maturity Date. The
redemption price will be the unpaid principal amount of the Notes,
together with accrued and unpaid interest thereon, plus the Make-Whole
Amount (if any). Following such redemption, the lien on the Aircraft
under the Aircraft Security Agreement will be released. See "Description
of the Equipment Notes — Redemption — Optional Redemption."
Section 1110 Protection
It is a condition to the subjection of an Aircraft to the lien of the
Aircraft Security Agreement that American's General Counsel provide an
opinion to the Trustee and the Security Agent that the benefits of
Section 1110 ("
Section 1110
") of the U.S. Bankruptcy Code ("
Bankruptcy
Code
") will be available with respect to such Aircraft. The Cash
Collateral and any other cash held as collateral as a result of the
exercise of remedies under the Aircraft Security Agreement will not be
entitled to the benefits of Section 1110. See "Risk Factors — Risk
Factors Relating to the Notes and the Exchange Offer — Payment on the
Notes and the ability to exercise remedies with respect to certain
collateral may be restricted in the case of a bankruptcy of American."
Ratings
Pursuant to the Registration Rights Agreement, American agreed, at no
cost to the Noteholders, to obtain ratings for the Notes from each of
Moody's and Standard & Poor's. If the Rating Condition is not satisfied
on or before December 31, 2009, the interest rate on the Notes will
permanently increase by 1.00% starting on January 1, 2010. See "Exchange
Offer; Registration Rights; Ratings."
Certain ERISA Considerations
Each person who acquires a Note or any interest therein will be deemed to
have represented that either:
•
no assets of (
a
) an employee benefit plan subject to Title I of
the Employee Retirement Income Security Act of 1974, as amended, (
b
) a
plan described in Section 4975(e)(1) of the Internal Revenue Code of
1986, as amended, (
c
) an entity whose underlying assets are deemed to
include assets of any such employee benefit plan or plan, or (
d
) a
foreign governmental or church plan that is subject to any U.S. federal,
state, local or foreign law or regulation that is substantially similar
to Section 406 of ERISA or Section 4975 of the Code have been used to
purchase such Note or interest therein; or
•
the purchase and holding of such Note or interest therein by such
person are exempt from the prohibited transaction restrictions of ERISA,
the Code or any similar provision of Similar Law, as applicable, pursuant
to one or more prohibited transaction statutory or administrative
exemptions.
See "Certain ERISA Considerations."
Governing Law
The Notes are governed by the laws of the State of New York.
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Ratio of Earnings to Fixed Charges
Six Months Ended
June 30,
Year Ended December 31,
2009
2008
2008
2007
2006
2005
2004
Ratio of earnings to fixed charges (1)
—
—
—
1.20
1.08
—
—
(1)
As of June 30, 2009, American guaranteed approximately $425 million of unsecured debt of its
parent, AMR Corporation and approximately $284 million of secured debt of AMR Eagle. The
impact of these unconditional guarantees is not included in the above computation. Earnings
were inadequate to cover fixed charges by $2,564 million, $956 million, $898 million, $774
million and $1,820 million for the years ended December 31, 2008, December 31, 2005, December
31, 2004, the six months ended June 30, 2009 and the six months ended June 30, 2008,
respectively.
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RISK FACTORS
You should carefully consider all of the information contained in or incorporated by reference
in this prospectus, including but not limited to, our and AMR's Annual Reports on Form 10-K for the
year ended December 31, 2008 (and, in the case of AMR, as updated by AMR's Current Report on Form
8-K filed on April 21, 2009), our and AMR's Quarterly Reports on Form 10-Q for the quarters ended
March 31, 2009 and June 30, 2009. In addition, you should carefully consider the risk factors
described below, along with any risk factors that may be included in our future reports to the SEC.
Risk Factors Relating to the Company
Our ability to become profitable and our ability to continue to fund our obligations on an
ongoing basis will depend on a number of risk factors, many of which are largely beyond our
control. Some of the factors that may have a negative impact on us are described below:
As a result of significant losses in recent years, our financial condition has been
materially weakened.
We incurred significant losses in 2001-2005, which materially weakened our financial
condition. We lost $892 million in 2005, $821 million in 2004, $1.3 billion in 2003, $3.5 billion
in 2002 and $1.6 billion in 2001. Although we earned a profit of $356 million in 2007 and $164
million in 2006, we lost $2.5 billion in 2008 (which included a $1.0 billion impairment charge) and
$754 million in the six months ended June 30, 2009. Because of our weakened financial condition,
we are vulnerable both to the impact of unexpected events (such as terrorist attacks or spikes in
jet fuel prices) and to deterioration of the operating environment (such as a deepening of the
current global recession or significant increased competition).
The severe global economic downturn has resulted in weaker demand for air travel and
lower investment asset returns, which may have a significant negative impact on us.
We are experiencing significantly weaker demand for air travel driven by the severe downturn
in the global economy. Many of the countries we serve are experiencing economic slowdowns or
recessions. We began to experience weakening demand late in 2008, and this weakness has continued
in 2009. We reduced capacity in 2008, and in 2009 we have announced additional reductions to our
capacity plan for this year. If the global economic downturn persists or worsens, demand for air
travel may continue to weaken. No assurance can be given that capacity reductions or other steps
we may take will be adequate to offset the effects of reduced demand.
The economic downturn has resulted in broadly lower investment asset returns and values, and
our pension assets suffered a material decrease in value in 2008 related to broader stock market
declines, which will result in higher pension expense in 2009 and future years and higher required
contributions in future years. In addition, under these unfavorable economic conditions, the
amount of the cash reserves we are required to maintain under our credit card processing agreements
may increase substantially. These issues individually or collectively may have a material adverse
impact on our liquidity. Also, disruptions in the capital markets and other sources of funding may
make it impossible for us to obtain necessary additional funding or make the cost of that funding
prohibitive.
We face numerous challenges as we seek to maintain sufficient liquidity, and we will
need to raise substantial additional funds. We may not be able to raise those funds, or to
do so on acceptable terms.
We have significant debt, lease and other obligations in the next several years, including
significant pension funding obligations. For example, in 2009 we will be required to make
approximately $1.3 billion of principal payments on long term debt and payments on capital leases,
and we expect to make approximately $1.6 billion of capital expenditures. In addition, the global
economic downturn, potential increases in the amount of required reserves under credit card
processing agreements, and the obligation to post cash collateral on fuel hedging contracts have
negatively impacted, and may in the future negatively impact, our liquidity. To meet our
commitments and to maintain sufficient liquidity as we continue to implement our restructuring and
cost reduction initiatives, we will need continued access to substantial additional funding.
Moreover, while we have arranged financings that, subject
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to certain terms and conditions
(including, in the case of one of the financing arrangements covering twelve aircraft, a condition
that, at the time of borrowing, we have a certain amount of unrestricted cash and short term
investments), cover all of our 2009-2011 aircraft delivery commitments through 2011, we will also
need to raise substantial additional funds to meet our commitments to purchase aircraft and execute
our fleet replacement plan.
Our ability to obtain future financing is limited by the value of our unencumbered assets. A
very large majority of our aircraft assets (including most of our aircraft eligible for the
benefits of Section 1110) are encumbered. Also, the market value of our aircraft assets has
declined in recent years, and may continue to decline.
Since the terrorist attacks of September 2001 (the "
Terrorist Attacks
"), our credit ratings
have been lowered to significantly below investment grade. These reductions have increased our
borrowing costs and otherwise adversely affected borrowing terms, and limited borrowing options.
Additional reductions in our credit ratings might have other effects on us, such as further
increasing borrowing or other costs or further restricting our ability to raise funds.
A number of other factors, including our financial results in recent years, our substantial
indebtedness, the difficult revenue environment we face, our reduced credit ratings, recent
historically high fuel prices, and the financial difficulties experienced in the airline industry,
adversely affect the availability and terms of funding for us. In addition, the global economic
downturn and recent severe disruptions in the capital markets and other sources of funding have
resulted in greater volatility, less liquidity, widening of credit spreads, and substantially more
limited availability of funding. As a result of these and other factors, although we believe we
can access sufficient liquidity to fund our operations and obligations for the remainder of 2009,
there can be no assurance that we will be able to do so. An inability to obtain necessary
additional funding on acceptable terms would have a material adverse impact on us and on our
ability to sustain our operations.
The amount of the reserves we are required to maintain under our credit card processing
agreements could increase substantially, which would materially adversely impact our
liquidity.
American has agreements with a number of credit card companies and processors to accept credit
cards for the sale of air travel and other services. Under certain of American's current credit
card processing agreements, the related credit card company or processor may hold back, under
certain circumstances, a reserve from American's credit card receivables.
Under one such agreement, which was recently amended, the amount of such reserve generally is
based on the amount of unrestricted cash (not including undrawn credit facilities) held by the
Company and the processor's exposure to the Company under the agreement. Given the volatility of
fuel prices and revenues, uncertainty in the capital markets and uncertainty about other sources of
funding, and other factors, it is difficult to forecast the required amount of such reserve at any
time. The amount of the reserve was $154 million as of June 30, 2009. The agreement limits the
maximum amount of the reserve (determined as described above) during the period ending February 15,
2010, and the Company currently estimates such maximum amount during that period to be
approximately $300 million. However, if current conditions persist, absent a waiver or
modification of the agreement, such required amount could be substantially greater after such
period.
Our initiatives to generate additional revenues and to reduce our costs may not be
adequate or successful.
As we seek to improve our financial condition, we must continue to take steps to generate
additional revenues and to reduce our costs. Although we have a number of initiatives underway to
address our cost and revenue challenges, some of these initiatives involve changes to our business
which we may be unable to implement. In addition, we expect that, as time goes on, it will be
progressively more difficult to identify and implement significant revenue enhancement and cost
savings initiatives. The adequacy and ultimate success of our initiatives to generate additional
revenues and reduce our costs are not known at this time and cannot be assured. Moreover, whether
our initiatives will be adequate or successful depends in large measure on factors beyond our
control, notably the overall industry environment, including passenger demand, yield and industry
capacity growth, and fuel prices. It will be very difficult for us to continue to fund our
obligations on an ongoing basis, and to return to
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profitability, if the overall industry revenue
environment does not improve substantially or if fuel prices were to increase and persist for an
extended period at high levels.
We may be adversely affected by increases in fuel prices, and we would be adversely
affected by disruptions in the supply of fuel.
Our results are very significantly affected by the volatile price and the availability of jet
fuel, which are in turn affected by a number of factors beyond our control. Fuel prices have only
recently declined from historic high levels.
Due to the competitive nature of the airline industry, we may not be able to pass on increased
fuel prices to customers by increasing fares. Although we had some success in raising fares and
imposing fuel surcharges in reaction to recent high fuel prices, these fare increases and
surcharges did not keep pace with the extraordinary increases in the price of fuel that occurred in
2007 and 2008. Furthermore, even though fuel prices have declined significantly from their recent
historic high levels, reduced demand or increased fare competition, or both, and resulting lower
revenues may offset any potential benefit of these lower fuel prices.
While we do not currently anticipate a significant reduction in fuel availability, dependence
on foreign imports of crude oil, limited refining capacity and the possibility of changes in
government policy on jet fuel production, transportation and marketing make it impossible to
predict the future availability of jet fuel. If there are additional outbreaks of hostilities or
other conflicts in oil producing areas or elsewhere, or a reduction in refining capacity (due to
weather events, for example), or governmental limits on the production or sale of jet fuel, there
could be a reduction in the supply of jet fuel and significant increases in the cost of jet fuel.
Major reductions in the availability of jet fuel or significant increases in its cost would have a
material adverse impact on us.
We have a large number of older aircraft in our fleet, and these aircraft are not as fuel
efficient as more recent models of aircraft. We believe it is imperative that we continue to
execute our fleet renewal plans. However, due to the recent machinist strike at Boeing, deliveries
of the Boeing 737-800 aircraft we currently have on order have been delayed. In addition, we
expect delays in the deliveries of the Boeing 787-9 aircraft we currently have on order.
While we seek to manage the risk of fuel price increases by using derivative contracts, there
can be no assurance that, at any given time, we will have derivatives in place to provide any
particular level of protection against increased fuel costs. In addition, a deterioration of our
financial position could negatively affect our ability to enter into derivative contracts in the
future. Moreover, declines in fuel prices below the levels established in derivative contracts may
require us to post cash collateral to secure the loss positions on such contracts, and if such
contracts close when fuel prices are below the applicable levels, we would be required to make
payments to close such contracts; these payments would be treated as additional fuel expense.
Our indebtedness and other obligations are substantial and could adversely affect our
business and liquidity.
We have and will continue to have significant amounts of indebtedness, obligations to make
future payments on aircraft equipment and property leases, and obligations under aircraft purchase
agreements, as well as a high proportion of debt to equity capital. In 2009, we will be required
to make approximately $1.3 billion of principal payments on long-term debt and payments on capital
leases. We expect to incur substantial additional debt (including secured debt) and lease
obligations in the future. We also have substantial pension funding obligations. Our substantial
indebtedness and other obligations have important consequences. For example, they:
•
limit our ability to obtain additional funding for working capital, capital
expenditures, acquisitions and general corporate purposes, and adversely affect the
terms on which such funding can be obtained;
•
require us to dedicate a substantial portion of our cash flow from operations to
payments on our indebtedness and other obligations, thereby reducing the funds
available for other purposes;
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•
make us more vulnerable to economic downturns; and
•
limit our ability to withstand competitive pressures and reduce our flexibility in
responding to changing business and economic conditions.
We may be unable to comply with our financial covenants.
American has a $433 million secured bank term loan facility (the "
Credit Facility
") with a
final maturity on December 17, 2010. The Credit Facility contains a liquidity covenant (the
"
Liquidity Covenant
") and a covenant that requires AMR to maintain certain minimum ratios of cash
flow to fixed charges (the "
EBITDAR Covenant
"). We were in compliance with the Liquidity Covenant
as of June 30, 2009. In June 2009, AMR and American entered into an amendment to the Credit
Facility which waived compliance with the EBITDAR Covenant for the quarter ended June 30, 2009;
however, even absent this waiver we would have complied with this covenant as of June 30, 2009. In
addition, the amendment reduced the minimum ratios AMR is required to satisfy to 0.95 to 1.00 for
the one, two and three quarter periods ending September 30, 2009, December 31, 2009 and March 31,
2010, respectively, to 1.00 to 1.00 for the four quarter period ending June 30, 2010, and to 1.05
to 1.00 for the four quarter period ending September 30, 2010. Given the volatility of fuel prices
and revenues, uncertainty in the capital markets and uncertainty about other sources of funding,
and other factors, it is difficult to assess whether we will be able to continue to comply with the
Liquidity Covenant and the EBITDAR Covenant, and there are no assurances that we will be able to do
so. Failure to comply with these covenants would result in a default under the Credit Facility
which — if we did not take steps to obtain a waiver of, or otherwise mitigate, the default — could
result in a default under a significant amount of our other debt and lease obligations, and
otherwise have a material adverse impact on us and our ability to sustain our operations.
Our business is affected by many changing economic and other conditions beyond our
control, and our results of operations tend to be volatile and fluctuate due to seasonality.
Our business and our results of operations are affected by many changing economic and other
conditions beyond our control, including, among others:
•
actual or potential changes in international, national, regional and local economic,
business and financial conditions, including recession, inflation, higher interest
rates, wars, terrorist attacks or political instability;
•
changes in consumer preferences, perceptions, spending patterns or demographic
trends;
•
changes in the competitive environment due to industry consolidation and other
factors;
•
actual or potential disruptions to the air traffic control systems;
•
increases in costs of safety, security and environmental measures;
•
outbreaks of diseases that affect travel behavior; and
•
weather and natural disasters.
As a result, our results of operations tend to be volatile and subject to rapid and unexpected
change. In addition, due to generally greater demand for air travel during the summer, our
revenues in the second and third quarters of the year tend to be stronger than revenues in the
first and fourth quarters of the year.
The airline industry is fiercely competitive and may undergo further consolidation or
changes in industry alliances, and we are subject to increasing competition.
Service over almost all of our routes is highly competitive and fares remain at low levels by
historical standards. We face vigorous, and, in some cases, increasing, competition from major
domestic airlines, national,
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regional, all-cargo and charter carriers, foreign air carriers,
low-cost carriers and, particularly on shorter segments, ground and rail transportation. We also
face increasing and significant competition from marketing/operational alliances formed by our
competitors. The percentage of routes on which we compete with carriers having substantially lower
operating costs than ours has grown significantly over the past decade, and we now compete with
low-cost carriers on a large majority of our domestic non-stop mainline network routes.
Certain airline alliances have been granted immunity from antitrust regulations by
governmental authorities for specific areas of cooperation, such as joint pricing decisions. To
the extent alliances formed by our competitors can undertake activities that are not available to
us, our ability to effectively compete may be hindered.
Pricing decisions are significantly affected by competition from other airlines. Fare
discounting by competitors historically has had a negative effect on our financial results because
we must generally match competitors' fares, since failing to match would result in even less
revenue. We have faced increased competition from carriers with simplified fare structures, which
are generally preferred by travelers. Any fare reduction or fare simplification initiative may not
be offset by increases in passenger traffic, reduction in cost or changes in the mix of traffic
that would improve yields. Moreover, decisions by our competitors that increase or reduce overall
industry capacity, or capacity dedicated to a particular domestic or foreign region, market or
route, can have a material impact on related fare levels.
There have been numerous mergers and acquisitions within the airline industry and numerous
changes in industry alliances. Recently, two of our largest competitors, Delta Air Lines, Inc. and
Northwest Airlines Corporation, merged, and the combined entity became the largest scheduled
passenger airline in the world in terms of available seat miles and revenue passenger miles. In
addition, another two of our largest competitors, United Air Lines, Inc. and Continental Airlines,
Inc., recently announced that they had entered into a framework agreement to cooperate extensively
and under which Continental would join the global alliance of which United, Lufthansa and certain
other airlines are members.
In the future, there may be additional mergers and acquisitions, and changes in airline
alliances, including those that may be undertaken in response to the merger of Delta and Northwest
or other developments in the airline industry. Any airline industry consolidation or changes in
airline alliances could substantially alter the competitive landscape and result in changes in our
corporate or business strategy. We regularly assess and explore the potential for consolidation in
our industry and changes in airline alliances, our strategic position and ways to enhance our
competitiveness, including the possibilities for our participation in merger activity.
Consolidation involving other participants in our industry could result in the formation of one or
more airlines with greater financial resources, more extensive networks, and/or lower cost
structures than exist currently, which could have a material adverse effect on us. For similar
reasons, changes in airline alliances could also adversely affect our competitive position.
In 2008, we entered into a joint business agreement and related marketing arrangements with
British Airways and Iberia, providing for commercial cooperation on flights between North America
and most countries in Europe, pooling and sharing of certain revenues and costs, expanded
codesharing, enhanced frequent flyer program reciprocity, and cooperation in other areas. Along
with these carriers and certain other carriers, we have applied to the U.S. Department of
Transportation for antitrust immunity for this planned cooperation. Implementation of this
agreement and the related arrangements is subject to conditions, including various U.S. and foreign
regulatory approvals, successful negotiation of certain detailed financial and commercial
arrangements, and other approvals. Agencies from which such approvals must be obtained may impose
requirements or limitations as a condition of granting any such approvals, such as requiring
divestiture of routes, gates, slots or other assets. No assurances can be given as to any
arrangements that may ultimately be implemented or any benefits that we may derive from such
arrangements.
We compete with reorganized carriers, which results in competitive disadvantages for
us.
We must compete with air carriers that have reorganized under the protection of Chapter 11 of
the Bankruptcy Code in recent years, including United, Delta, Northwest and U.S. Airways. It is
possible that other significant competitors may seek to reorganize in or out of Chapter 11.
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Successful reorganizations by other carriers present us with competitors with significantly
lower operating costs and stronger financial positions derived from renegotiated labor, supply, and
financing contracts. These competitive pressures may limit our ability to adequately price our
services, may require us to further reduce our operating costs, and could have a material adverse
impact on us.
Fares are at low levels and our reduced pricing power adversely affects our ability to
achieve adequate pricing, especially with respect to business travel.
Our passenger yield remains very low by historical standards. We believe that this is due in
large part to a corresponding decline in our pricing power. Our reduced pricing power is the
product of several factors including: greater cost sensitivity on the part of travelers
(particularly business travelers); pricing transparency resulting from the use of the Internet;
greater competition from low-cost carriers and from carriers that have recently reorganized under
the protection of Chapter 11; other carriers being well hedged against rising fuel costs and able
to better absorb high jet fuel prices; and fare simplification efforts by certain carriers. We
believe that our reduced pricing power could persist indefinitely.
Our corporate or business strategy may change.
In light of the rapid changes in the airline industry, we evaluate our assets on an ongoing
basis with a view to maximizing their value to us and determining which are core to our operations.
We also regularly evaluate our corporate and business strategies, and they are influenced by
factors beyond our control, including changes in the competitive landscape we face. Our corporate
and business strategies are, therefore, subject to change.
Beginning in late 2007 and continuing into 2008, AMR, American's parent company, conducted a
strategic value review involving, among other things, AMR Eagle, American Beacon Advisors, Inc.,
AMR's investment advisory subsidiary ("
American Beacon Advisors
") and AAdvantage, our frequent
flyer program. The purpose of the review was to determine whether there existed the potential for
unlocking additional stockholder value with respect to one or more of these strategic assets
through some type of separation transaction. As a result of this review, AMR announced in late
2007 that it planned to divest AMR Eagle; however, in mid-2008 AMR announced that, given the
then-current industry environment, AMR had decided to place that planned divestiture on hold until
industry conditions are more favorable and stable. Also pursuant to the review, AMR sold American
Beacon Advisors to a third party in September 2008 (AMR maintained a minority equity stake).
In the future, AMR may consider and engage in discussions with third parties regarding the
divestiture of AMR Eagle and other separation transactions, and may decide to proceed with one or
more such transactions. There can be no assurance that AMR will complete any separation
transactions or that any announced plans or transactions will be consummated, and no prediction can
be made as to the impact of any such transactions on stockholder value or on us.
Our business is subject to extensive government regulation, which can result in
increases in our costs, disruptions to our operations, limits on our operating flexibility,
reductions in the demand for air travel, and competitive disadvantages.
Airlines are subject to extensive domestic and international regulatory requirements. Many of
these requirements result in significant costs. For example, the FAA from time to time issues
directives and other regulations relating to the maintenance and operation of aircraft. Compliance
with those requirements drives significant expenditures and has in the past, and may in the future,
cause disruptions to our operations. In addition, the ability of U.S. carriers to operate
international routes is subject to change because the applicable arrangements between the United
States and foreign governments may be amended from time to time, or because appropriate slots or
facilities are not made available.
Moreover, additional laws, regulations, taxes and airport rates and charges have been enacted
from time to time that have significantly increased the costs of airline operations, reduced the
demand for air travel or restricted the way we can conduct our business. For example, the Aviation
and Transportation Security Act, which became law in 2001, mandated the federalization of
certain
airport security procedures and resulted in the imposition of
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additional security requirements on
airlines. In addition, many aspects of our operations are subject to increasingly stringent
environmental regulations, and concerns about climate change, in particular, may result in the
imposition of additional regulation. For example, the U.S. Congress is considering climate change
legislation, and the European Union (the "
EU
") has approved a proposal that will put a cap on
carbon dioxide emissions for all flights into and out of the EU effective in 2012. Laws or
regulations similar to those described above or other U.S. or foreign governmental actions in the
future may adversely affect our business and financial results.
The results of our operations, demand for air travel, and the manner in which we conduct our
business each may be affected by changes in law and future actions taken by governmental agencies,
including:
•
changes in law which affect the services that can be offered by airlines in
particular markets and at particular airports;
•
the granting and timing of certain governmental approvals (including foreign
government approvals) needed for codesharing alliances and other arrangements with
other airlines;
•
restrictions on competitive practices (for example court orders, or agency
regulations or orders, that would curtail an airline's ability to respond to a
competitor);
•
the adoption of regulations that impact customer service standards (for example new
passenger security standards, passenger bill of rights);
•
restrictions on airport operations, such as restrictions on the use of takeoff and
landing slots at airports or the auction of slot rights currently or previously held by
us; or
•
the adoption of more restrictive locally imposed noise restrictions.
In addition, the air traffic control ("
ATC
") system, which is operated by the FAA, is not
successfully managing the growing demand for U.S. air travel. U.S. airlines carry about 740
million passengers a year and are forecasted to accommodate a billion passengers annually by 2015.
Air-traffic controllers rely on outdated technologies that routinely overwhelm the system and
compel airlines to fly inefficient, indirect routes. We support a common-sense approach to ATC
modernization that would allocate cost to all ATC system users in proportion to the services they
consume. The reauthorization by the U.S. Congress of legislation that funds the FAA, which
includes proposals regarding upgrades to the ATC system, is pending, but it is uncertain when any
such legislation will be enacted.
We could be adversely affected by conflicts overseas or terrorist attacks.
Actual or threatened U.S. military involvement in overseas operations has, on occasion, had an
adverse impact on our business, financial position (including access to capital markets) and
results of operations, and on the airline industry in general. The continuing conflicts in Iraq
and Afghanistan, or other conflicts or events in the Middle East or elsewhere, may result in
similar adverse impacts.
The Terrorist Attacks had a material adverse impact on us. The occurrence of another
terrorist attack (whether domestic or international and whether against us or another entity) could
again have a material adverse impact on us.
Our international operations could be adversely affected by numerous events,
circumstances or government actions beyond our control.
Our current international activities and prospects could be adversely affected by factors such
as reversals or delays in the opening of foreign markets, exchange controls, currency and political
risks, environmental regulation, taxation and changes in international government regulation of our
operations, including the inability to obtain or retain needed route authorities and/or slots.
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For example, the "open skies" air services agreement between the United States and the EU
which took effect in March 2008 provides airlines from the United States and EU member states open
access to each other's markets, with freedom of pricing and unlimited rights to fly beyond the
United States and any airport in the EU including London's Heathrow Airport. The agreement has
resulted in American facing increased competition in these markets, including Heathrow, where we
have lost market share.
We could be adversely affected by an outbreak of a disease that affects travel
behavior.
In the second quarter of 2009, there was an outbreak of the H1N1 virus which had an adverse
impact throughout our network but primarily on our operations to and from Mexico. In 2003, there
was an outbreak of Severe Acute Respiratory Syndrome ("
SARS
"), which had an adverse impact
primarily on our Asia operations. In addition, in the past there have been concerns about
outbreaks or potential outbreaks of other diseases, such as avian flu. Any outbreak of a disease
(including a worsening of the outbreak of the H1N1 virus) that affects travel behavior could have a
material adverse impact on us. In addition, outbreaks of disease could result in quarantines of
our personnel or an inability to access facilities or our aircraft, which could adversely affect
our operations.
Our labor costs are higher than those of our competitors.
Wages, salaries and benefits constitute a significant percentage of our total operating
expenses. In 2008, they constituted approximately 23 percent of our total operating expenses. All
of the major hub-and-spoke carriers with whom American competes have achieved significant labor
cost savings through or outside of bankruptcy proceedings. We believe American's labor costs are
higher than those of its primary competitors, and it is unclear how long this labor cost
disadvantage may persist.
We could be adversely affected if we are unable to have satisfactory relations with any
unionized or other employee work group.
Our operations could be adversely affected if we fail to have satisfactory relations with any
labor union representing our employees. In addition, any significant dispute we have with, or any
disruption by, an employee work group could adversely impact us. Moreover, one of the fundamental
tenets of our strategic Turnaround Plan is increased union and employee involvement in our
operations. To the extent that we are unable to have satisfactory relations with any unionized or
other employee work group, our ability to execute our strategic plans could be adversely affected.
American is currently in mediated negotiations with each of its three major unions regarding
amendments to their respective labor agreements. The negotiations process in the airline industry
typically is slow and sometimes contentious. The union that represents American's pilots has
recently filed a number of grievances, lawsuits and complaints, most of which American believes are
part of a corporate campaign related to the union's labor agreement negotiations with American.
While American is vigorously defending these claims, unfavorable outcomes of one or more of them
could require American to incur additional costs, change the way it conducts some parts of its
business, or otherwise adversely affect us.
Our insurance costs have increased substantially and further increases in insurance
costs or reductions in coverage could have an adverse impact on us.
We carry insurance for public liability, passenger liability, property damage and all-risk
coverage for damage to our aircraft. As a result of the Terrorist Attacks, aviation insurers
significantly reduced the amount of insurance coverage available to commercial air carriers for
liability to persons other than employees or passengers for claims resulting from acts of
terrorism, war or similar events (war-risk coverage). At the same time, these insurers
significantly increased the premiums for aviation insurance in general.
The U.S. government has agreed to provide commercial war-risk insurance for U.S. based
airlines through August 31, 2010, covering losses to employees, passengers, third parties and
aircraft. If the U.S. government does not provide such insurance at any time beyond that date, or
reduces the coverage provided by such insurance, we
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will attempt to purchase similar coverage with
narrower scope from commercial insurers at an additional cost. To the extent this coverage is not
available at commercially reasonable rates, we would be adversely affected.
While the price of commercial insurance had declined since the period immediately after the
Terrorist Attacks, in the event commercial insurance carriers further reduce the amount of
insurance coverage available to us, or significantly increase its cost, we would be adversely
affected.
We may be unable to retain key management personnel.
Since the Terrorist Attacks, a number of our key management employees have elected to retire
early or leave for more financially favorable opportunities at other companies, both within and
outside of the airline industry. There can be no assurance that we will be able to retain our key
management employees. Any inability to retain our key management employees, or attract and retain
additional qualified management employees, could have a negative impact on us.
We could be adversely affected by a failure or disruption of our computer,
communications or other technology systems.
We are heavily and increasingly dependent on technology to operate our business. The computer
and communications systems on which we rely could be disrupted due to various events, some of which
are beyond our control, including natural disasters, power failures, terrorist attacks, equipment
failures, software failures and computer viruses and hackers. We have taken certain steps to help
reduce the risk of some (but not all) of these potential disruptions. There can be no assurance,
however, that the measures we have taken are adequate to prevent or remedy disruptions or failures
of these systems. Any substantial or repeated failure of these systems could impact our operations
and customer service, result in the loss of important data, loss of revenues, and increased costs,
and generally harm our business. Moreover, a failure of certain of our vital systems could limit
our ability to operate our flights for an extended period of time, which would have a material
adverse impact on our operations and our business.
We are at risk of losses and adverse publicity which might result from an accident
involving any of our aircraft.
If one of our aircraft were to be involved in an accident, we could be exposed to significant
tort liability. The insurance we carry to cover damages arising from any future accidents may be
inadequate. In the event that our insurance is not adequate, we may be forced to bear substantial
losses from an accident. In addition, any accident involving an aircraft operated by us could
adversely affect the public's perception of us.
Risk Factors Relating to the Notes and the Exchange Offer
Noteholders may not be able to resell the Notes easily or at a favorable price.
The New Notes are a new issue of securities with no established trading market. We do not
intend to apply for listing of the Notes on any securities exchange or otherwise. The Initial
Purchasers are not obligated to make a market in the Notes, and any such market-making may be
discontinued at any time, at the sole discretion of the Initial Purchasers. In addition, such
market-making activities may be limited by the Securities Act and the Exchange Act during the
pendency of the exchange offer or the effectiveness of a shelf registration in lieu thereof.
Accordingly, no assurance can be given as to the liquidity of, or trading markets for, the New
Notes or in the case of non-exchanging holders of Old Notes, the trading market for the Old Notes
following the exchange offer.
The liquidity of, and trading market for, the Old Notes or the New Notes also may be adversely
affected by general declines in the markets or by declines in the market for similar securities.
Such declines may adversely affect such liquidity and trading markets independent of our financial
performance and prospects.
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You may have difficulty selling the Old Notes that you do not exchange.
If you do not exchange your Old Notes for New Notes in the exchange offer, your Old Notes will
continue to be subject to significant restrictions on transfer. Those transfer restrictions are
described in the Indenture and arose because we originally issued the Old Notes under exemptions
from the registration requirements of the Securities Act. The Old Notes may not be offered, sold or
otherwise transferred, except in compliance with the registration requirements of the Securities
Act, pursuant to an exemption from registration under the Securities Act or in a transaction not
subject to the registration requirements of the Securities Act, and in compliance with applicable
state securities laws. We did not register the Old Notes under the Securities Act, and we do not
intend to do so. If you do not exchange your Old Notes, your ability to sell the Old Notes may be
significantly limited. If a large number of outstanding Old Notes are exchanged for New Notes
issued in the exchange offer, it may be more difficult for you to sell your unexchanged Old Notes
due to the limited amounts of Old Notes that would remain outstanding following the exchange offer.
Holders of Old Notes who do not tender their Old Notes will have no further
registration rights.
Holders of Old Notes who do not tender their Old Notes will not have any further registration
rights under the Registration Rights Agreement or otherwise and will no longer have the right to
receive additional interest under the Registration Rights Agreement unless we fail to obtain
ratings for the Notes as described under "Exchange Offer; Registration Rights; Ratings."
Your Old Notes may not be accepted for exchange if you fail to follow the exchange
offer procedures, and, as a result, your Old Notes could continue to be subject to existing
transfer restrictions.
We are not required to accept your Old Notes for exchange if you do not follow the exchange
offer procedures. We will issue New Notes as part of the exchange offer only after a timely receipt
of your Old Notes, a properly completed and duly executed letter of transmittal or Agent's Message
and all other required documents, or waiver of any such requirements, in accordance with the
procedures described under "The Exchange Offer." If we do not receive your Old Notes, confirmation
of a book-entry transfer of your Old Notes, letter of transmittal or Agent's Message and other
required documents by the Expiration Date, we may not accept your Old Notes for exchange. We are
under no duty to notify you of defects or irregularities with respect to your tender of Old Notes
for exchange. If there are defects or irregularities with respect to your tender of Old Notes, we
may not accept your Old Notes for exchange. See "The Exchange Offer."
Appraisals should not be relied upon as a measure of realizable value of the Aircraft.
Three independent appraisal and consulting firms have prepared appraisals of the Aircraft.
The appraisal letters provided by these firms are annexed to this prospectus as Appendix II. Such
appraisals of the Aircraft are subject to a number of significant assumptions and methodologies
(which differ among the appraisers) and were prepared without a physical inspection of the
Aircraft. The appraisals may not accurately reflect the current market value of the Aircraft.
Appraisals that are based on other assumptions and methodologies (or a physical inspection of the
Aircraft) may result in valuations that are materially different from those contained in such
appraisals. See "Description of the Aircraft and the Appraisals — The Appraisals."
An appraisal is only an estimate of value. It does not necessarily indicate the price at
which an aircraft may be purchased or sold in the market. In particular, the appraisals of the
Aircraft are estimates of the values of the Aircraft assuming the Aircraft are in a certain
condition, which may not be the case when the Aircraft are subjected to the lien of the Aircraft
Security Agreement after the 1999-1 Maturity Date and on or prior to the Cut-Off Date. An
appraisal should not be relied upon as a measure of realizable value. The proceeds realized upon
the exercise of remedies with respect to any Aircraft, including a sale of such Aircraft, may be
less than its appraised value. The value of an Aircraft if remedies are exercised under the
Aircraft Security Agreement will depend on various factors, including market, economic and airline
industry conditions; the supply of similar aircraft; the availability of buyers; the condition of
such Aircraft; the time period in which such Aircraft is sought to be sold; and whether such
Aircraft is sold separately or as part of a block.
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Since the Terrorist Attacks, the airline industry has suffered substantial losses. In
response to adverse market conditions, we and many other U.S. air carriers have reduced the number
of aircraft in operation, and there may be further reductions, particularly by air carriers in
bankruptcy or liquidation. Any such reduction of aircraft of the same models as the Aircraft could
adversely affect the value of the Aircraft.
Accordingly, we cannot assure you that the proceeds realized upon any exercise of remedies
with respect to the Aircraft would be sufficient to satisfy in full payments due on the Notes.
If we fail to perform maintenance responsibilities, the value of the Aircraft may
deteriorate.
To the extent described in the Aircraft Security Agreement, we will be responsible for the
maintenance, service, repair and overhaul of the Aircraft. If we fail to perform these
responsibilities adequately, the value of the Aircraft may be reduced. In addition, the value of
the Aircraft may deteriorate even if we fulfill our maintenance responsibilities. As a result, it
is possible that upon a liquidation, there will be less proceeds than anticipated to repay
Noteholders. See "Description of the Notes — Certain Provisions of the Aircraft Security Agreement
— Maintenance and Operation."
Inadequate levels of insurance may result in insufficient proceeds to repay
Noteholders.
To the extent described in the Aircraft Security Agreement, we must maintain all-risk aircraft
hull insurance on the Aircraft. If we fail to maintain adequate levels of insurance, the proceeds
which could be obtained upon an Event of Loss of an Aircraft may be insufficient to repay the
Allocable Portion of the Notes with respect to such Aircraft. See "Description of the Notes —
Certain Provisions of the Aircraft Security Agreement — Insurance."
Repossession of Aircraft may be difficult, time-consuming and expensive.
There will be no general geographic restrictions on our ability to operate the Aircraft.
Although we do not currently intend to do so, we are permitted to register the Aircraft in certain
foreign jurisdictions and to lease the Aircraft, and to enter into interchange or pooling
arrangements with respect to the Aircraft, with unrelated third parties. It may be difficult,
time-consuming and expensive for the Security Agent to exercise its repossession rights,
particularly if an Aircraft is located outside the United States, is registered in a foreign
jurisdiction or is leased to or in the possession of a foreign or domestic operator. Additional
difficulties may exist if such a lessee or other operator is the subject of a bankruptcy,
insolvency or similar event. See "Description of the Notes — Certain Provisions of the Aircraft
Security Agreement — Registration, Leasing and Possession."
In addition, some jurisdictions may allow for other liens or other third party rights to have
priority over the Security Agent's security interest in an Aircraft. As a result, the benefits of
the Security Agent's security interest in an Aircraft may be less than they would be if the
Aircraft were located or registered in the United States.
Upon repossession of an Aircraft, the Aircraft may need to be stored and insured. The costs
of storage and insurance can be significant and the incurrence of such costs could reduce the
proceeds available to repay the Noteholders. In addition, at the time of foreclosing on the lien
on the Aircraft under the Aircraft Security Agreement, an Airframe subject to the lien of the
Aircraft Security Agreement might not be equipped with the Engines associated with that Airframe.
If American fails to obtain title to engines not owned by American that are attached to repossessed
Aircraft, it could be difficult, expensive and time-consuming to assemble an Aircraft consisting of
an Airframe and the associated Engines subject to the lien of the Aircraft Security Agreement.
The proceeds from the disposition of any Aircraft may not be sufficient to pay all
amounts distributable to the Noteholders.
During the continuation of any Event of Default under the Indenture, the Aircraft may be sold
in the exercise of remedies. The market for Aircraft during the continuation of any Event of
Default may be very limited, and there can be no assurance as to whether they could be sold or the
price at which they could be sold.
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As a Noteholder, you will have no protection against our entry into extraordinary
transactions, including acquisitions and other business combinations, and there are no
financial or other covenants in the Notes or the underlying agreements that impose
restrictions on our financial and business operations or our ability to execute any such
transaction.
The Notes and the other Operative Documents will not contain any financial or other covenants
or "event risk" provisions protecting the Noteholders in the event of a highly leveraged or other
extraordinary transaction, including an acquisition or other business combination, affecting
American or its affiliates. We do from time to time analyze opportunities presented by various
types of transactions, and we may conduct our business in a manner that could cause the market
price or liquidity of the Notes to decline, could have a material adverse effect on our financial
condition or otherwise could restrict or impair our ability to pay amounts due under the Notes
and/or the related agreements, including by entering into a highly leveraged or other extraordinary
transaction.
Fewer than all of the Aircraft may be subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date.
Under certain circumstances, fewer than all of the Aircraft may be subjected to the lien of
the Aircraft Security Agreement on or prior to the Cut-Off Date. This could occur because an
Aircraft suffers a 1999-1 Event of Loss (or an event that would constitute a 1999-1 Event of Loss
but for the requirement that notice be given or time elapse or both) or for other reasons. See
"Description of the Notes — Collateral — Release of Cash Collateral." If fewer than all of the
Aircraft have been subjected to the lien of the Aircraft Security Agreement on or prior to the
Cut-Off Date, on the Cut-Off Redemption Date, we will be obligated to redeem the Allocable Portion
of the Notes attributable to each Aircraft that has not been subjected to the lien of the Aircraft
Security Agreement. The redemption price will be the Allocable Portion of the Notes attributable
to each such Aircraft, together with accrued and unpaid interest on such Allocable Portion, and the
Make-Whole Amount (if any) with respect to such Allocable Portion. Notwithstanding the foregoing,
no Make-Whole Amount will be payable in the case of a redemption because of the occurrence of a
1999-1 Event of Loss with respect to such Aircraft (or an event that would constitute a 1999-1
Event of Loss but for the requirement that notice be given or time elapse or both). Upon any such
partial redemption with respect to an Aircraft, the amount of the Cash Collateral equal to the
Allocable Portion of the Notes attributable to such Aircraft will be released to us so long as no
Event of Default shall have occurred and be continuing, and our obligation thereafter to make the
scheduled interest and principal payments with respect to such Allocable Portion of the Notes will
cease.
Payments on the Notes and the ability to exercise remedies with respect to certain
collateral may be restricted in the case of a bankruptcy of American.
Section 1110, which provides certain special rights to secured parties with a security
interest in aircraft equipment such as the Aircraft (see "Description of the Notes — Remedies"),
would not apply to the Cash Collateral deposited with the Trustee on initial issuance of the Old
Notes or any cash collateral held by the Security Agent. If we become the subject of a case under
the Bankruptcy Code, the ability of the Noteholders to enforce their security interest in the Cash
Collateral or such other cash collateral would be subject to the automatic stay under Section 362
of the Bankruptcy Code. Any resulting delay in the enforcement of the security interest could be
for a substantial period of time. Moreover, the Bankruptcy Code permits a debtor, with the
approval of the bankruptcy court, to use cash collateral even though the debtor is in default under
the applicable debt instrument, provided that the secured creditor is given "adequate protection."
What constitutes "adequate protection" varies under the circumstances, and it is not possible to
predict in advance what a bankruptcy court might judge to be "adequate protection" in a particular
instance.
In addition, the substitution of the Aircraft for the Cash Collateral could be subject to
partial avoidance as a "preference" under Section 547 of the Bankruptcy Code if (1) it occurred
within 90 days before a bankruptcy filing by us (or one year in the case of Notes held by an
"insider" of American within the meaning of the U.S. Bankruptcy Code) and (2) it enabled the
Noteholders to receive more than they would receive if we were liquidated under Chapter 7 of the
Bankruptcy Code and the substitution had not occurred which would likely be the case.
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The Notes are not currently rated, and any rating of the Notes, if obtained, may be
lowered or withdrawn in the future.
The Notes are not currently rated by any rating agency. While American has agreed to use its
reasonable best efforts to obtain ratings of the Notes from both Moody's Investors Service, Inc.
("
Moody's
") and Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC
business ("
Standard & Poor's
" and together with Moody's, the "
Rating Agencies
") on or before
December 31, 2009, there can be no assurance that either Rating Agency will provide a rating on the
Notes. In addition, there is no requirement that the Notes be rated at or above a certain rating
category. Any rating that may be obtained will not be a recommendation to purchase, hold or sell
the Notes, because such rating would not address market price or suitability for a particular
investor. A rating may change during any given period of time and may be lowered or withdrawn
entirely by a Rating Agency if in its judgment circumstances in the future (including the
downgrading of American) so warrant. Moreover, any change in a Rating Agency's assessment of the
risks of aircraft-backed debt (and similar securities such as the Notes) could adversely affect any
rating issued by such Rating Agency with respect to the Notes. The failure of American to obtain
ratings of the Notes will result in an adjustment to the interest rate for the Notes (see "Exchange
Offer; Registration Rights; Ratings"). Such failure or the reduction, suspension or withdrawal of
any ratings of the Notes will not, by itself, constitute an Event of Default.
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THE EXCHANGE OFFER
Pursuant to the Registration Rights Agreement, we agreed to prepare and file with the SEC a
registration statement on an appropriate form under the Securities Act with respect to a proposed
offer to the holders of the Old Notes to issue and deliver to such holders of Old Notes, in
exchange for their Old Notes, a like aggregate principal amount of New Notes that are identical in
all material respects to the Old Notes, except for provisions relating to registration rights and
the transfer restrictions relating to the Old Notes, and except for certain related differences
described below. See "Exchange Offer; Registration Rights; Ratings."
Terms of the Exchange Offer; Period for Tendering Old Notes
This prospectus and the accompanying letter of transmittal contain the terms and conditions of
the exchange offer. Upon the terms and subject to the conditions included in this prospectus and in
the accompanying letter of transmittal, which together constitute the exchange offer, we will
accept for exchange Old Notes which are properly tendered on or prior to the Expiration Date,
unless you have previously withdrawn them.
When you tender Old Notes as provided below, our acceptance of the Old Notes will constitute a
binding agreement between you and American upon the terms and subject to the conditions in this
prospectus and in the accompanying letter of transmittal. In tendering Old Notes, you should also
note the following important information:
•
You may only tender Old Notes in minimum denominations of $2,000 and any integral
multiple of $1,000 in excess thereof.
•
We will keep the exchange offer open for not less than 20 business days, or longer
if required by applicable law, after the date on which notice of the exchange offer is
mailed to holders of the Old Notes. We are sending this prospectus, together with the
letter of transmittal, on or about the date of this prospectus, to all of the
registered holders of Old Notes at their addresses listed in the Trustee's security
register with respect to the Old Notes.
•
The exchange offer expires at      , New York City time, on
        , 2009; provided, however, that we, in our sole discretion, may extend the period of
time for which the exchange offer is open.
•
As of the date of this prospectus, $276,400,000 aggregate principal amount of Old
Notes was outstanding. The exchange offer is not conditioned upon any minimum principal
amount of Old Notes being tendered.
•
Our obligation to accept Old Notes for exchange in the exchange offer is subject to
the conditions described under "—Conditions to the Exchange Offer."
•
We expressly reserve the right, at any time, to extend the period of time during
which the exchange offer is open, and thereby delay acceptance of any Old Notes, by
giving oral or written notice of an extension to the Exchange Agent and notice of that
extension to the Noteholders as described below. During any extension, all Old Notes
previously tendered will remain subject to the exchange offer unless withdrawal rights
are exercised as described under "—Withdrawal Rights." Any Old Notes not accepted for
exchange for any reason will be returned without expense to the tendering Noteholder as
promptly as practicable after the expiration or termination of the exchange offer.
•
We expressly reserve the right to amend or terminate the exchange offer, and not to
accept for exchange any Old Notes that we have not yet accepted for exchange, at any
time prior to the Expiration Date.
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•
We will give oral or written notice of any extension, amendment, termination or
non-acceptance described above to holders of the Old Notes as promptly as practicable.
If we extend the Expiration Date, we will give notice by means of a press release or
other public announcement no later than 9:00 a.m., New York City time, on the business
day after the previously scheduled Expiration Date. Without limiting the manner in
which we may choose to make any public announcement and subject to applicable law, we
will have no obligation to publish, advertise or otherwise communicate any public
announcement other than by issuing a release to an appropriate news agency. Such
announcement may state that we are extending the exchange offer for a specified period
of time.
•
Holders of Old Notes do not have any appraisal or dissenters' rights in connection
with the exchange offer.
•
Old Notes which are not tendered for exchange, or are tendered but not accepted, in
connection with the exchange offer will remain outstanding and be entitled to the
benefits of the Indenture, but will not be entitled to any further registration rights
under the Registration Rights Agreement.
•
We intend to conduct the exchange offer in accordance with the applicable
requirements of the Exchange Act and the rules and regulations of the SEC thereunder.
•
By executing, or otherwise becoming bound by, the letter of transmittal, you will be
making to us the representations described under "—Resale of the New Notes."
Important rules concerning the exchange offer
You should note the following important rules concerning the exchange offer:
•
All questions as to the validity, form, eligibility, time of receipt and acceptance
of Old Notes tendered for exchange will be determined by us in our sole discretion,
which determination shall be final and binding.
•
We reserve the absolute right to reject any and all tenders of any particular Old
Notes not properly tendered or to not accept any particular Old Notes if such
acceptance might, in our judgment or the judgment of our counsel, be unlawful.
•
We also reserve the absolute right to waive any defects or irregularities or
conditions of the exchange offer as to any particular Old Notes either before or after
the Expiration Date, including the right to waive the ineligibility of any holder who
seeks to tender Old Notes in the exchange offer. Unless we agree to waive any defect or
irregularity in connection with the tender of Old Notes for exchange, you must cure any
defect or irregularity within any reasonable period of time as we shall determine.
•
Our interpretation of the terms and conditions of the exchange offer as to any
particular Old Notes either before or after the Expiration Date shall be final and
binding on all parties. Neither American, the Exchange Agent nor any other person shall
be under any duty to notify you of any defect or irregularity with respect to any
tender of Old Notes for exchange, nor shall any of them incur any liability for failing
to so notify you.
Procedures for Tendering Old Notes
What to submit and how
If you, as a holder of any Old Notes, wish to tender your Old Notes for exchange in the
exchange offer, you must, except as described under "—Guaranteed Delivery Procedures," transmit the
following on or prior to the Expiration Date to the Exchange Agent:
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(1)
if Old Notes are tendered in accordance with the book-entry procedures
described under "—Book-Entry Transfer," an Agent's Message, as defined below,
transmitted through DTC's ATOP, or
(2)
a properly completed and duly executed letter of transmittal, or a facsimile
copy thereof, to the Exchange Agent at the address set forth below under "—Exchange
Agent," including all other documents required by the letter of transmittal.
In addition,
(1)
a timely confirmation of a book-entry transfer of Old Notes into the Exchange
Agent's account at DTC using the procedure for book-entry transfer described under
"—Book-Entry Transfer" (a "
Book-Entry Confirmation
"), along with an Agent's Message,
must be actually received by the Exchange Agent prior to the Expiration Date, or
(2)
certificates for Old Notes must be actually received by the Exchange Agent
along with the letter of transmittal on or prior to the Expiration Date, or
(3)
you must comply with the guaranteed delivery procedures described below.
The term "
Agent's Message
" means a message, transmitted through ATOP by DTC to, and received
by, the Exchange Agent and forming a part of a Book-Entry Confirmation, that states that DTC has
received an express acknowledgement that the tendering holder has received and agrees to be bound
by the letter of transmittal or, in the case of an Agent's Message relating to guaranteed delivery,
that such holder has received and further agrees to be bound by the notice of guaranteed delivery,
and that we may enforce the letter of transmittal, and the notice of guaranteed delivery, as the
case may be, against such holder.
The method of delivery of Old Notes, letters of transmittal, notices of guaranteed delivery
and all other required documentation, including delivery of Old Notes through DTC and transmission
of Agent's Messages through DTC's ATOP, is at your election and risk. Delivery will be deemed made
only when all required documentation is actually received by the Exchange Agent. Delivery of
documents or instructions to DTC does not constitute delivery to the Exchange Agent. If delivery is
by mail, we recommend that registered mail, properly insured, with return receipt requested, be
used. In all cases, sufficient time should be allowed to assure timely delivery to the Exchange
Agent. Holders tendering Old Notes or transmitting Agent's Messages through DTC's ATOP must allow
sufficient time for completion of ATOP procedures during DTC's normal business hours. No Old Notes,
Agent's Messages, letters of transmittal, notices of guaranteed delivery or any other required
documentation should be sent to American.
How to sign your letter of transmittal and other documents
Signatures on a letter of transmittal or a notice of withdrawal, as the case may be, must be
guaranteed unless the Old Notes being surrendered for exchange are tendered:
(1) by a registered holder of the Old Notes who has not completed the box entitled "Special
Issuance Instructions" or "Special Delivery Instructions" on the letter of transmittal, or
(2) for the account of an "eligible guarantor" institution within the meaning of Rule 17Ad-15
under the Exchange Act, or a commercial bank or trust company having an office or correspondent in
the United States that is a member in good standing of a medallion program recognized by the
Securities Transfer Association Inc., including the Securities Transfer Agents Medallion Program
("
STAMP
"), the Stock Exchanges Medallion Program ("
SEMP
") and the New York Stock Exchange Medallion
Signature Program ("
MSP
") (each, an "
Eligible Institution
").
If signatures on a letter of transmittal or a notice of withdrawal, as the case may be, are
required to be guaranteed, the guarantees must be by an Eligible Institution.
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If the letter of transmittal is signed by a person or persons other than the registered holder
or holders of Old Notes, the Old Notes must be endorsed or accompanied by appropriate powers of
attorney, in either case signed exactly as the name or names of the registered holder or holders
appear on the Old Notes and with the signatures guaranteed.
If the letter of transmittal or any Old Notes or powers of attorney are signed by trustees,
executors, administrators, guardians, attorneys-in-fact, officers or corporations or others acting
in a fiduciary or representative capacity, the person should so indicate when signing and, unless
waived by us, proper evidence satisfactory to us of such person's authority to so act must be
submitted.
Acceptance of Old Notes for Exchange; Delivery of New Notes
Once all of the conditions to the exchange offer are satisfied or waived, we will accept,
promptly after the Expiration Date, all Old Notes properly tendered and not properly withdrawn, and
will issue the New Notes of the same series promptly after such acceptance. See "—Conditions to the
Exchange Offer" below. For purposes of the exchange offer, our giving of oral or written notice of
acceptance to the Exchange Agent will be considered our acceptance of the tendered Old Notes.
In all cases, we will issue New Notes in exchange for Old Notes of the same series that are
accepted for exchange only after timely receipt by the Exchange Agent of:
•
a Book-Entry Confirmation or Old Notes in proper form for transfer,
•
a properly transmitted Agent's Message or a properly completed and duly executed
letter of transmittal, and
•
all other required documentation.
If we do not accept any tendered Old Notes for any reason included in the terms and conditions
of the exchange offer, if you submit certificates representing Old Notes in a greater principal
amount than you wish to exchange or if you properly withdraw tendered Old Notes in accordance with
the procedures described under
"—Withdrawal Rights," we will return any unaccepted, non-exchanged or properly withdrawn Old
Notes, as the case may be, without expense to the tendering holder. In the case of Old Notes
tendered by book-entry transfer into the Exchange Agent's account at DTC using the book-entry
transfer procedures described below, unaccepted, non-exchanged or properly withdrawn Old Notes will
be credited to an account maintained with DTC. We will return the Old Notes or have them credited
to the DTC account, as applicable, as promptly as practicable after the expiration or termination
of the exchange offer.
Book-Entry Transfer
The Exchange Agent will make a request to establish an account with respect to the Old Notes
at DTC for purposes of the exchange offer promptly after the date of this prospectus. Any financial
institution that is a participant in DTC's systems, including Euroclear Bank, S.A./N.V., as
operator of the Euroclear System ("
Euroclear
"), or Clearstream Banking, société anonyme
("
Clearstream
") may make book-entry delivery of Old Notes by causing DTC to transfer Old Notes into
the Exchange Agent's account at DTC in accordance with DTC's ATOP procedures for transfer. However,
the exchange for the Old Notes so tendered will only be made after timely confirmation of
book-entry transfer of Old Notes into the Exchange Agent's account, and timely receipt by the
Exchange Agent of an Agent's Message and all other documents required by the letter of transmittal.
Only participants in DTC may deliver Old Notes by book-entry transfer.
Although delivery of Old Notes may be effected through book-entry transfer into the Exchange
Agent's account at DTC, the letter of transmittal, or a facsimile copy thereof, properly completed
and duly executed, with any required signature guarantees, or an Agent's Message, with all other
required documentation, must in any case be transmitted to and received by the Exchange Agent at
its address listed under "—Exchange Agent" on or prior to
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the Expiration Date, or you must comply
with the guaranteed delivery procedures described below under "—Guaranteed Delivery Procedures."
If your Old Notes are held through DTC, you must complete the accompanying form called
"Instructions to Registered Holder and/or Book-Entry Participant," which will instruct the DTC
participant through whom you hold your Old Notes of your intention to tender your Old Notes or not
tender your Old Notes. Please note that delivery of documents or instructions to DTC does not
constitute delivery to the Exchange Agent and we will not be able to accept your tender of Old
Notes until the Exchange Agent actually receives from DTC the information and documentation
described under "—Acceptance of Old Notes for Exchange; Delivery of Old Notes."
Guaranteed Delivery Procedures
If you are a registered holder of Old Notes and you want to tender your Old Notes but the
procedure for book-entry transfer cannot be completed prior to the Expiration Date, your Old Notes
are not immediately available or time will not permit your Old Notes to reach the Exchange Agent
before the Expiration Date, a tender may be effected if:
•
the tender is made through an Eligible Institution, as defined above,
•
prior to the Expiration Date, the Exchange Agent receives from such Eligible
Institution, by facsimile transmission, mail or hand delivery, a properly completed and
duly executed notice of guaranteed delivery, substantially in the form provided by us,
or an Agent's Message with respect to guaranteed delivery in lieu thereof, in either
case stating:
—
the name and address of the holder of Old Notes,
—
the amount of Old Notes tendered,
—
that the tender is being made by delivering such notice and
guaranteeing that, within three New York Stock Exchange trading days after the
Expiration Date, a Book-Entry Confirmation or the certificates for all
physically tendered Old Notes, in proper form for transfer, together with
either an appropriate Agent's Message or a properly completed and duly executed
letter of transmittal in lieu therof, and all other required documentation,
will be deposited by that Eligible Institution with the Exchange Agent, and
•
a Book-Entry Confirmation or the certificates for all physically tendered Old Notes,
in proper form for transfer, together with either an appropriate Agent's Message or a
properly completed and duly executed letter of transmittal in lieu therof, and all
other required documentation, are received by the Exchange Agent within three New York
Stock Exchange trading days after the Expiration Date.
Withdrawal Rights
You can withdraw your tender of Old Notes at any time on or prior to      , New York
City time, on the Expiration Date.
For a withdrawal to be effective, a written notice of withdrawal must be actually received by
the Exchange Agent prior to such time, properly transmitted either through DTC's ATOP or to the
Exchange Agent at the address listed below under "—Exchange Agent." Any notice of withdrawal must:
•
specify the name of the person having tendered the Old Notes to be withdrawn;
•
identify the Old Notes to be withdrawn;
•
specify the principal amount of the Old Notes to be withdrawn;
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•
contain a statement that the tendering holder is withdrawing its election to have
such Notes exchanged for New Notes;
•
except in the case of a notice of withdrawal transmitted through DTC's ATOP system,
be signed by the holder in the same manner as the original signature on the letter of
transmittal by which the Old Notes were tendered, including any required signature
guarantees, or be accompanied by documents of transfer to have the trustee with respect
to the Old Notes register the transfer of the Old Notes in the name of the person
withdrawing the tender;
•
if certificates for Old Notes have been delivered to the Exchange Agent, specify the
name in which the Old Notes are registered, if different from that of the withdrawing
holder;
•
if certificates for Old Notes have been delivered or otherwise identified to the
Exchange Agent, then, prior to the release of those certificates, specify the serial
numbers of the particular certificates to be withdrawn, and, except in the case of a
notice of withdrawal transmitted through DTC's ATOP system, include a notice of
withdrawal signed in the same manner as the letter of transmittal by which the Old
Notes were tendered, including any required signature guarantees; and
•
if Old Notes have been tendered using the procedure for book-entry transfer
described above, specify the name and number of the account at DTC from which the Old
Notes were tendered and the name and number of the account at DTC to be credited with
the withdrawn Old Notes, and otherwise comply with the procedures of DTC.
Please note that all questions as to the validity, form, eligibility and time of receipt of
notices of withdrawal will be determined by us, and our determination shall be final and binding on
all parties. Any Old Notes so withdrawn will be considered not to have been validly tendered for
exchange for purposes of the exchange offer. New Notes will not be issued in exchange for such
withdrawn Old Notes unless the Old Notes so withdrawn are validly re-tendered.
If you have properly withdrawn Old Notes and wish to re-tender them, you may do so by
following one of the procedures described under "—Procedures for Tendering Old Notes" above at any
time on or prior to the Expiration Date.
Conditions to the Exchange Offer
Notwithstanding any other provisions of the exchange offer, we will not be required to accept
for exchange, or to issue New Notes in exchange for, any Old Notes and may terminate or amend the
exchange offer, if we determine in our reasonable judgment at any time before the Expiration Date
that the exchange offer would violate applicable law or any applicable interpretation of the staff
of the SEC.
The foregoing conditions are for our sole benefit and may be waived by us regardless of the
circumstances giving rise to that condition. Our failure at any time to exercise the foregoing
rights shall not be considered a waiver by us of that right. The rights described in the prior
paragraph are ongoing rights which we may assert at any time and from time to time.
In addition, we will not accept for exchange any Old Notes tendered, and no New Notes will be
issued in exchange for any such Old Notes, if at any time any stop order is threatened or in effect
with respect to the registration statement of which this prospectus constitutes a part or the
qualification of the Indenture under the Trust Indenture Act.
We reserve the right to terminate or amend the exchange offer at any time prior to the
Expiration Date upon the occurrence of any of the foregoing events.
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Exchange Agent
U.S. Bank National Association has been appointed as the Exchange Agent for the exchange
offer. All executed letters of transmittal, notices of guaranteed delivery, notices of withdrawal
and any other required documentation should be directed to the Exchange Agent at the address set
forth below. Questions and requests for assistance, requests for additional copies of this
prospectus or of the letter of transmittal and requests for notices of guaranteed delivery should
be directed to the Exchange Agent, addressed as follows:
Deliver To:
By registered or certified mail, hand
By facsimile:
For information call:
delivery or overnight courier:
(651) 495-8158
(651) 495-3520
U.S. Bank Corporate Trust
Attn: Lori Buckles — Specialized
Finance
60 Livingston Avenue
2nd Floor
St. Paul, MN 55107
Delivery to an address other than the address of the Exchange Agent as listed above or
transmission of instructions via facsimile other than as listed above does not constitute a valid
delivery.
Fees and Expenses
The principal solicitation is being made by mail; however, additional solicitation may be made
by telephone or in person by our officers, regular employees and affiliates. We will not pay any
additional compensation to any of our officers and employees who engage in soliciting tenders. We
will not make any payment to brokers, dealers or others soliciting acceptances of the exchange
offer. However, we will pay the Exchange Agent reasonable and customary fees for its services and
will reimburse it for its reasonable out-of-pocket expenses in connection with the exchange offer.
The estimated cash expenses to be incurred in connection with the exchange offer, including
legal, accounting, SEC filing, printing and Exchange Agent expenses, will be paid by us and are
estimated in the aggregate to be $305,000.
Transfer Taxes
Holders who tender their Old Notes for exchange will not be obligated to pay any transfer
taxes in connection therewith, except that holders who instruct us to register New Notes in the
name of, or request that Old Notes not tendered or not accepted in the exchange offer be returned
to, a person other than the registered tendering holder will be responsible for the payment of any
applicable transfer tax.
Resale of the New Notes
Under existing interpretations of the staff of the SEC contained in several no-action letters
to third parties, the New Notes would in general be freely transferable by holders thereof (other
than affiliates of us) after the exchange offer without further registration under the Securities
Act (subject to certain representations required to be made by each holder of Old Notes
participating in the exchange offer, as set forth below). The relevant no-action letters include
the Exxon Capital Holdings Corporation letter, which was made available by the SEC on May 13, 1988,
the Morgan Stanley & Co. Incorporated letter, which was made available by the SEC on June 5, 1991,
the K-111 Communications Corporation letter, which was made available by the SEC on May 14, 1993,
and the Shearman & Sterling letter, which was made available by the SEC on July 2, 1993.
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However, any purchaser of Old Notes who is an "affiliate" of ours or who intends to
participate in the exchange offer for the purpose of distributing the New Notes:
•
will not be able to rely on such SEC interpretation;
•
will not be able to tender its Old Notes in the exchange offer; and
•
must comply with the registration and prospectus delivery requirements of the
Securities Act in connection with any sale or transfer of Old Notes unless such sale or
transfer is made pursuant to an exemption from those requirements.
By executing, or otherwise becoming bound by, the letter of transmittal, each holder of the
Old Notes will represent that:
•
any New Notes to be received by such holder will be acquired in the ordinary course
of its business;
•
it has no arrangements or understandings with any person to participate in the
distribution of the Notes within the meaning of the Securities Act; and
•
it is not an "affiliate" of us or, if it is such an affiliate, such holder will
comply with the registration and prospectus delivery requirements of the Securities Act
to the extent applicable.
We have not sought, and do not intend to seek, a no-action letter from the SEC with respect to
the effects of the exchange offer, and there can be no assurance that the SEC staff would make a
similar determination with respect to the New Notes as it has made in previous no-action letters.
In addition, in connection with any resales of those Old Notes, each exchanging dealer, as
defined below, receiving New Notes for its own account in exchange for Old Notes, where such Old
Notes were acquired by such exchanging dealer as a result of market-making activities or other
trading activities, must acknowledge that it will deliver a prospectus meeting the requirements of
the Securities Act in connection with any resale of such New Notes. See "Plan of Distribution."
The SEC has taken the position in the Shearman & Sterling no-action letter, which it made
available on July 2, 1993, that exchanging dealers may fulfill their prospectus delivery
requirements with respect to the New Notes, other than a resale of an unsold allotment from the
original sale of the Old Notes, by delivery of the prospectus contained in the exchange offer
registration statement.
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USE OF PROCEEDS
The exchange offer is intended to satisfy our obligations under the Registration Rights
Agreements we entered into in connection with the private offering of the Old Notes. We will not
receive any cash proceeds from the issuance of the New Notes under the exchange offer. In
consideration for issuing the New Notes as contemplated by this prospectus, we will receive Old
Notes in like principal amounts, the terms of which are identical in all material respects to the
New Notes, subject to limited exceptions. Old Notes surrendered in exchange for New Notes will be
retired and canceled and cannot be reissued. Accordingly, the issuance of the New Notes will not
result in any increase in our indebtedness.
American deposited the entire proceeds from the sale of the Old Notes with the Trustee under
the Indenture to be held by the Trustee as cash collateral for American's obligations under the
Notes. See "Description of the Notes — Collateral."
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DESCRIPTION OF THE NOTES
The following summary describes certain material terms of the Notes. The summary does not
purport to be complete and is qualified in its entirety by reference to all of the provisions of
the Notes, the Indenture and the Aircraft Security Agreement (collectively, the "
Operative
Documents
"). We urge you to read each of the Operative Documents for additional detail and further
information because they, and not this description, define your rights. Each of the Operative
Documents and specimen copies of the Notes have been filed as exhibits to the registration
statement of which this prospectus constitutes a part. Copies are available as set forth under
"Where You Can Find More Information." The references to Sections in parentheses in the following
summary are to the relevant Sections of the applicable Operative Document.
General
The American Airlines, Inc. 13.0% 2009-2 Secured Notes due 2016 (the "
Old Notes
") were issued
on July 31, 2009 (the "
Issuance Date
") under an Indenture (the "
Indenture
") between American and
U.S. Bank Trust National Association, as trustee (the "
Trustee
").
The New Notes will be issued pursuant to the Indenture. The forms and terms of the New Notes
are the same in all material respects as the form and terms of the Old Notes, except that the New
Notes:
•
are registered under the Securities Act and will not be subject to restrictions on
transfer;
•
will bear a different CUSIP and ISIN number than the Old Notes;
•
will not entitle their holders to registration rights; and
•
will be subject to terms relating to book-entry procedures and administrative terms
relating to transfers that differ from those of the Old Notes.
The New Notes will be issued only in fully registered form, without coupons, in minimum
denominations of $2,000 or integral multiples of $1,000 in excess thereof, except that one Note may
be issued in a different denomination. (Indenture, Section 2.01(b)) The Notes are secured by a
lien on the collateral and are full recourse obligations of American. See "— Collateral." The New
Notes will be subject to the provisions described below under "— Book-Entry, Delivery and Form."
Although separate Notes are not issued with respect to each Aircraft, the Indenture specifies
that a certain portion of the outstanding principal amount of the Notes is allocable to each
Aircraft (the "
Allocable Portion
"). The Allocable Portion of the Notes with respect to each
Aircraft on the Cut-Off Date and each Payment Date is specified in Appendix III. For any date
before the first Payment Date, the Allocable Portion of the Notes with respect to each Aircraft
will be the amount specified in Appendix III for the Cut-Off Date. For any date after the first
Payment Date, other than a Payment Date, the Allocable Portion of the Notes with respect to each
Aircraft will be the amount specified in Appendix III for the Payment Date that immediately
precedes such date.
Payments of Principal and Interest
The Notes are limited to $276,400,000 of principal in the aggregate. Subject to the
provisions of the Indenture, payments of principal on the Notes are scheduled to be paid on each
February 1 and August 1, commencing February 1, 2010 (each February 1 and August 1, a "
Payment
Date
"), until August 1, 2016 (the "
Scheduled Maturity Date
") as set forth below.
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Principal Payment
Payment Date
Amount
February 1, 2010
$
18,405,129.71
August 1, 2010
17,859,800.03
February 1, 2011
17,313,071.43
August 1, 2011
16,766,342.88
February 1, 2012
16,219,614.32
August 1, 2012
15,672,885.72
February 1, 2013
15,126,157.20
August 1, 2013
14,579,428.57
February 1, 2014
14,032,700.21
August 1, 2014
13,485,971.65
February 1, 2015
13,911,204.82
August 1, 2015
13,182,233.36
February 1, 2016
12,453,261.99
August 1, 2016
77,392,198.11
If fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date and the Allocable Portion of the Notes attributable to
each Aircraft that has not been subjected to the lien of the Aircraft Security Agreement is
redeemed, or if any Aircraft subjected to the lien of the Aircraft Security Agreement suffers an
Event of Loss and the Allocable Portion of the Notes with respect to such Aircraft is redeemed, in
each case as set forth under "— Redemption — Mandatory Redemption," the foregoing principal payment
schedule will change. Such schedule will be recomputed to give effect to such redemptions and
notice thereof will be delivered to the Noteholders as provided in the Indenture. (Indenture,
Section 2.07(b))
Interest accrues on the unpaid principal amount of each Note at the fixed rate per annum set
forth on the cover page of this prospectus, subject to a potential increase if we fail to obtain
ratings for the Notes as described in "Exchange Offer; Registration Rights; Ratings" (the "
Stated
Interest Rate
")
.
Interest on the Notes is payable on each Payment Date. Interest on the Notes
accrues from the most recent date to which interest has been paid or, if no interest has been paid,
from the Issuance Date. Interest on the Notes is calculated on the basis of a 360-day year
consisting of twelve 30-day months.
Payments of principal and interest are made to holders of record of the Notes on the 15th day
preceding the applicable Payment Date, whether or not such record date is a Business Day. If any
date scheduled for a payment of principal, interest or Make-Whole Amount, if any, is not a Business
Day, such payment will be made on the next succeeding Business Day without additional interest.
(Indenture, Section 2.07(d))
If the money for purposes of any payment of principal or interest on the Notes has not been
deposited, in whole or in part, with the Trustee by American on any Payment Date, the Trustee will
make such payment on the next Business Day on which some or all of the money has been deposited
with the Trustee. However, if some or all of the money has not been deposited with the Trustee for
purposes of making a payment of principal or interest on the Notes within five days after the
Payment Date for such payment, American will be required to fix a special payment date and special
record date for such payment and to give written notice to the Noteholders of such special dates
and the amount of defaulted principal or interest to be paid.
"
Business Day
" means any day other than: a Saturday, a Sunday, or other day on which
commercial banks are authorized or required by law to close in New York, New York, Fort Worth,
Texas, or the city and state in which the Trustee is located.
Redemption
Mandatory Redemption
If fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date for any reason, on the Cut-Off Redemption Date, American
will be required to redeem the
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Allocable Portion of the Notes with respect to each Aircraft that
has not been subjected to the lien of the Aircraft Security Agreement. In the case of a redemption
for any reason other than because of the occurrence with respect to such Aircraft of a 1999-1 Event
of Loss (or an event that would constitute a 1999-1 Event of Loss but for the requirement that
notice be given or time elapse or both), the redemption price in such case will be the Allocable
Portion of the Notes with respect to such Aircraft, together with all accrued and unpaid interest
on such Allocable Portion to (but excluding) the date of redemption, plus the Make-Whole Amount, if
any, with respect to such Allocable Portion and all other obligations with respect to such Aircraft
owed or then due and payable to the Noteholders. (Indenture, Section 2.19(b)) In the case of a
redemption because of the occurrence with respect to such Aircraft of a 1999-1 Event of Loss (or an
event that would constitute a 1999-1 Event of Loss but for the requirement that notice be given or
time elapse or both), the redemption price in such case will be the Allocable Portion of the Notes
with respect to such Aircraft, together with all accrued and unpaid interest on such Allocable
Portion to (but excluding) the date of redemption, but without any Make-Whole Amount or other
premium, and all other obligations with respect to such Aircraft owed or then due and payable to
the Noteholders. (Indenture, Section 2.19(a)) In each case, upon any such partial redemption with
respect to an Aircraft, Cash Collateral in an amount equal to the Allocable Portion of the Notes
attributable to such Aircraft will be released to American so long as no Event of Default shall
have occurred and be continuing, and the obligation of American thereafter to make the scheduled
interest and principal payments with respect to such Allocable Portion of the Notes will cease.
(Indenture, Section 1.03(e)) The investment earnings on all such Cash Collateral shall be paid over
to American on the last day on which any Cash Collateral with respect to the Allocable Portion of
the Notes attributable to any Aircraft is released to American.
If an Event of Loss occurs with respect to an Aircraft that has been subjected to the lien of
the Aircraft Security Agreement and such Aircraft is not replaced by American under the Aircraft
Security Agreement as set forth under "— Certain Provisions of the Aircraft Security Agreement —
Event of Loss," American will be required to redeem the Allocable Portion of the Notes with respect
to such Aircraft. The redemption price in such case will be the Allocable Portion of the Notes
with respect to such Aircraft, together with all accrued and unpaid interest on such Allocable
Portion to (but excluding) the date of redemption, but without any premium, and all other
obligations with respect to such Aircraft owed or then due and payable to the Noteholders.
(Indenture, Section 2.19(c)) Following such partial redemption, the lien on such Aircraft under the
Aircraft Security Agreement will be released and such Aircraft will no longer secure the amounts
that may be owing under the Indenture or the Aircraft Security Agreement. (Aircraft Security
Agreement, Section 7.05) In addition, the obligation of American thereafter to make the scheduled
interest and principal payments with respect to such Allocable Portion of the Notes will cease.
Optional Redemption
All, but not less than all, of the Notes may be redeemed prior to maturity at any time, at the
option of American. The redemption price in such case will be equal to 100% of the unpaid
principal thereof, together with all accrued and unpaid interest thereon to (but excluding) the
date of redemption, plus the Make-Whole Amount (if any), and all other obligations owed or then due
and payable to Noteholders under the Indenture. (Indenture, Section 2.20)
General
With respect to any redemption, the Trustee will send to each Noteholder a notice of
redemption at least 15 days but not more than 60 days before any redemption date. If applicable,
such notice shall identify the Allocable Portion of the Notes to be redeemed. If less than all of
the Notes are to be redeemed, the Notes will be redeemed on a pro rata basis. On the redemption
date, interest will cease to accrue on the Notes or the Allocable Portion thereof called for
redemption, unless American fails to make the redemption payment for such Notes. (Indenture,
Section 2.24)
"
Make-Whole Amount
" means, with respect to the Notes or any Allocable Portion of the Notes,
the amount (as determined by an independent investment banker selected by American (and, following
the occurrence and during the continuance of an Event of Default, reasonably acceptable to the
Trustee)), if any, by which (i) the present value of the remaining scheduled payments of principal
and interest (or in the case of any Allocable Portion of the Notes, the remaining amounts listed in
Appendix III under "Scheduled Principal Payment" for the relevant Aircraft plus scheduled payments
of interest thereon) from the redemption date to, and including, the Scheduled
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Maturity Date
computed by discounting each such payment on a semiannual basis from its respective payment date
(assuming a 360-day year of twelve 30-day months) using a discount rate equal to the Treasury Yield
plus 0.75% (such percentage, the "
Make-Whole Spread
"), exceeds (ii) the outstanding aggregate
principal amount of the Notes or such Allocable Portion plus accrued but unpaid interest thereon to
the date of redemption. (Indenture, Annex A)
For purposes of determining the Make-Whole Amount, "
Treasury Yield
" means, at the date of
determination, the interest rate (expressed as a semiannual equivalent and as a decimal rounded to
the number of decimal places as appears in the interest rate applicable to the Notes and, in the
case of United States Treasury bills, converted to a bond equivalent yield) determined to be the
per annum rate equal to the semiannual yield to maturity for United States Treasury securities
maturing on the Average Life Date and trading in the public securities market either as determined
by interpolation between the most recent weekly average constant maturity, non-inflation-indexed
series yield to maturity for two series of United States Treasury securities, trading in the public
securities markets, (A) one maturing as close as possible to, but earlier than, the Average Life
Date and (B) the other maturing as close as possible to, but later than, the Average Life Date, in
each case as reported in the most recent H.15(519) or, if a weekly average constant maturity,
non-inflation-indexed series yield to maturity for United States Treasury securities maturing on
the Average Life Date is reported in the most recent H.15(519), such weekly average yield to
maturity as reported in such H.15(519). "
H.15(519)
" means the weekly statistical release designated
as such, or any successor publication, published by the Board of Governors of the Federal Reserve
System. The date of determination of a Make-Whole Amount shall be the third Business Day prior to
the applicable redemption date and the "
most recent H.15(519)
" means the latest H.15(519) published
prior to the close of business on the third Business Day prior to the applicable redemption date.
(Indenture, Annex A)
"
Average Life Date
" for the Notes or each Allocable Portion of the Notes to be redeemed shall
be the date which follows the redemption date by a period equal to the Remaining Weighted Average
Life at the redemption date of the Notes or such Allocable Portion. "
Remaining Weighted Average
Life
" of the Notes or any Allocable Portion of the Notes, at the redemption date of the Notes or
such Allocable Portion, shall be the number of days equal to the quotient obtained by dividing:
(i) the sum of the products obtained by multiplying (A) the amount of each then remaining
installment of principal, including the payment due on the Scheduled Maturity Date (or in the case
of any Allocable Portion of the Notes, each remaining amount listed in Appendix III under
"Scheduled Principal Payment" for the relevant Aircraft to, and including, the Scheduled Maturity
Date), by (B) the number of days from and including the redemption date to but excluding the
scheduled payment date of such principal installment (or in the case of the any Allocable Portion
of the Notes, the scheduled payment date for such amount so listed in Appendix III) by (ii) the
then unpaid principal amount of the Notes or such Allocable Portion. (Indenture, Annex A)
Collateral
On the Issuance Date, American entered into the Indenture with the Trustee, providing for the
grant of a security interest in the Cash Collateral. The Trustee invested the Cash Collateral in
certain permitted investments and any interest accruing on the Cash Collateral is, so long as no
Event of Default shall have occurred and be continuing, for American's account. The investment
earnings on the Cash Collateral shall be paid over to American on the last day on which any Cash
Collateral with respect to the Allocable Portion of the Notes attributable to any Aircraft is
released to American.
On and subject to the terms and conditions of the Indenture, American agreed to subject the
Aircraft to the lien of the Aircraft Security Agreement following the 1999-1 Maturity Date and on
or prior to the Cut-Off Date. This includes an assignment for security purposes to the Security
Agent of certain of American's warranty rights with respect to such Aircraft under its purchase
agreements with Boeing. (Aircraft Security Agreement, Granting Clause) The subjection of each
Aircraft to the lien of the Aircraft Security Agreement is subject to a number of terms and
conditions, including that no Event of Default (or an event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both) under the Indenture
shall have occurred and be continuing; that no 1999-1 Event of Loss (or an event that would
constitute a 1999-1 Event of Loss but for the requirement that notice be given or time elapse or
both) with respect to such Aircraft shall have occurred and be continuing; that there shall be no
liens on such Aircraft (including the liens created under the applicable 1999-1 Indenture), other
than certain "permitted liens" as defined in the Indenture; that there shall be an assignment for
security purposes of certain of American's rights under its purchase agreement with the
manufacturer of such
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Aircraft; and that American's General Counsel shall have provided an opinion
that the benefit of Section 1110 will be available with respect to such Aircraft. The Aircraft may
be subjected to the lien of the Aircraft Security Agreement on different dates.
Release of Cash Collateral
On and subject to the terms of the Indenture, once an Aircraft has been subjected to the lien
of the Aircraft Security Agreement, and provided that no Event of Default shall have occurred and
be continuing, the Trustee shall release an amount of Cash Collateral equal to the Allocable
Portion of the Notes attributable to such Aircraft to American. The investment earnings on all
such Cash Collateral shall be paid over to American on the last day on which any Cash Collateral
with respect to the Allocable Portion of the Notes attributable to any Aircraft is released to
American.
Since the Aircraft may be subjected to the lien of the Aircraft Security Agreement at various
times following the 1999-1 Maturity Date and on or prior to the Cut-Off Date, no assurance can be
given that all of the terms and conditions therefor in the Indenture will be satisfied on or prior
to the Cut-Off Date. In particular, there is a chance that an Aircraft might suffer a 1999-1 Event
of Loss (or an event that would constitute a 1999-1 Event of Loss but for the requirement that
notice be given or time elapse or both) on or prior to the Cut-Off Date. If for this or other
reasons fewer than all of the Aircraft have been subjected to the lien of the Aircraft Security
Agreement on or prior to the Cut-Off Date, American will be obligated to redeem the Allocable
Portion of the Notes with respect to each Aircraft that was not subjected to the lien of the
Aircraft Security Agreement, as described under "— Redemption — Mandatory Redemption" above.
Following such redemptions, Cash Collateral in an amount equal to such Allocable Portion of the
Notes will be released to American so long as no Event of Default shall have occurred and be
continuing. (Indenture, Section 1.03(e))
Cash
Cash, including the Cash Collateral and funds held as the result of an occurrence of Event of
Loss with respect to an Aircraft, held from time to time by the Trustee or the Security Agent, as
the case may be, is invested and reinvested by the Trustee or the Security Agent, as the case may
be, at the direction of American, in investments described in the Indenture or the Aircraft
Security Agreement, as the case may be. (Indenture, Section 5.06; Aircraft Security Agreement,
Section 5.06) Such investments are not entitled to the benefits of Section 1110. See "Risk Factors
— Risk Factors Relating to the Notes and the Exchange Offer — Payment on the Notes and the ability
to exercise remedies with respect to certain collateral may be restricted in the case of a
bankruptcy of American."
Loan to Value Ratios of Notes
The tables in Appendix III to this prospectus set forth LTVs for the Allocable Portion of the
Notes with respect to each Aircraft as of the Cut-Off Date and each Payment Date. For any date
before the first Payment Date, the Allocable Portion of the Notes with respect to each Aircraft
will be the amount specified in Appendix III for the Cut-Off Date. For any date after the first
Payment Date, other than a Payment Date, the Allocable Portion of the Notes with respect to each
Aircraft will be the amount specified in Appendix III for the Payment Date that immediately
precedes such date.
The LTVs for the Cut-Off Date and each Payment Date listed in the tables in Appendix III were
obtained by dividing (
i
) the Allocable Portion of the Notes with respect to each Aircraft (assuming
all of the Aircraft are subjected to the lien of the Aircraft Security Agreement on or prior to the
Cut-Off Date, and that no Payment Default or redemption has occurred) determined immediately after
giving effect to any principal payments scheduled to be made on each such date by (
ii
) the assumed
aircraft value (the "
Assumed Aircraft Value
") on such date, calculated based on the Depreciation
Assumption, of such Aircraft.
The tables in Appendix III are based on the assumption (the "
Depreciation Assumption
") that
the Assumed Aircraft Value of each Aircraft depreciates annually by approximately 3% of the value
at delivery per year for the first 15 years after delivery of such Aircraft by the manufacturer, by
approximately 4% per year thereafter for the next five years and by approximately 5% each year
after that. The appraised value of each Aircraft is the theoretical
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value that, when depreciated
from the initial delivery of such Aircraft by the manufacturer in accordance with the Depreciation
Assumption, results in the appraised value of such Aircraft specified under "Prospectus Summary —
The Aircraft" and "Description of the Aircraft and the Appraisals — The Appraisals."
Other rates or methods of depreciation could result in materially different LTVs, and no
assurance can be given (
i
) that the depreciation rate and method assumed for the purposes of the
tables are the ones most likely to occur or (
ii
) as to the actual future value of any Aircraft.
Thus, the tables should not be considered a forecast or prediction of expected or likely LTVs, but
simply a mathematical calculation based on one set of assumptions. See "Risk Factors — Risk
Factors Relating to the Notes and the Exchange Offer — Appraisals should not be relied upon as a
measure of realizable value of the Aircraft."
Events of Default
Each of the following constitutes an "
Event of Default
" with respect to the Notes:
•
the failure by American to pay any interest, principal or Make-Whole Amount (if any)
within 15 days after the same has become due on any Note (such failure, without giving
effect to any such notice or grace period, a "
Payment Default
");
•
the failure by American to pay any amount (other than interest, principal or
Make-Whole Amount (if any)) when due under the Indenture or any Note for more than 30
days after American receives written notice from the Trustee or the holders of at least
25% of the principal amount of the outstanding Notes;
•
the failure by American to perform or observe in any material respect any other
covenant, condition or agreement to be performed or observed by it under the Indenture
(other than American's obligation to subject the Aircraft to the lien of the Aircraft
Security Agreement on or prior to the Cut-Off Date) that continues for a period of 60
days after American receives written notice from the Trustee or the holders of at least
25% of the principal amount of the outstanding Notes;
provided
that, if such failure is
capable of being remedied, no such failure will constitute an Event of Default for a
period of one year after such notice is received by American so long as American is
diligently proceeding to remedy such failure;
•
any representation or warranty made by American in the Indenture or in any Note
proves to have been incorrect in any material respect when made, and such incorrectness
continues to be material to the transactions contemplated by the Indenture and remains
unremedied for a period of 60 days after American receives written notice from the
Trustee or the holders of at least 25% of the principal amount of the outstanding
Notes;
provided
that, if such incorrectness is capable of being remedied, no such
incorrectness will constitute an Event of Default for a period of one year after such
notice is received by American so long as American is diligently proceeding to remedy
such incorrectness;
•
the occurrence of certain events of bankruptcy, reorganization or insolvency of
American (each, an "
American Bankruptcy Event
"); or
•
after the Aircraft Security Agreement is entered into, the occurrence of an Aircraft
Security Event of Default. (Indenture, Section 4.01)
Each of the following constitutes an "
Aircraft Security Event of Default
" with respect to the
Notes:
•
the failure by American to pay to the Security Agent any amount when due under the
Aircraft Security Agreement for more than 30 days after American receives written
notice from the Security Agent or the Trustee;
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•
the failure by American to carry and maintain (or cause to be maintained) insurance
or indemnity on or with respect to any Aircraft that has been subjected to the lien of
the Aircraft Security Agreement in accordance with the provisions of the Aircraft
Security Agreement;
provided
that no such failure to carry and maintain insurance will
constitute an Aircraft Security Event of Default until the earlier of (
i
) the date such
failure has continued unremedied for a period of 30 days after the Security Agent
receives notice of the cancellation or lapse of such insurance or (
ii
) the date such
insurance is not in effect as to the Security Agent;
•
the failure by American to perform or observe (or cause to be performed or observed)
in any material respect any other covenant, condition or agreement to be performed or
observed by it under the Aircraft Security Agreement that continues for a period of 60
days after American receives written notice from the Security Agent or the Trustee;
provided
that, if such failure is capable of being remedied, no such failure will
constitute an Aircraft Security Event of Default for a period of one year after such
notice is received by American so long as American is diligently proceeding to remedy
such failure; or
•
any representation or warranty made by American in the Aircraft Security Agreement
proves to have been incorrect in any material respect when made, and such incorrectness
continues to be material to the transactions contemplated by the Aircraft Security
Agreement and remains unremedied for a period of 60 days after American receives
written notice from the Security Agent or the Trustee;
provided
that, if such
incorrectness is capable of being remedied, no such incorrectness will constitute an
Aircraft Security Event of Default for a period of one year after such notice is
received by American so long as American is diligently proceeding to remedy such
incorrectness;
provided
that notwithstanding anything to the contrary contained in the foregoing, any
failure by American to perform or observe any covenant, condition or agreement shall not
constitute an Aircraft Security Event of Default if such failure arises by reason of an
event referred to in the definition of "Event of Loss" so long as American is continuing to
comply with all of the terms described under "— Certain Provisions of the Aircraft Security
Agreement — Event of Loss." (Aircraft Security Agreement, Section 4.01)
If an event occurs and is continuing which is, or after notice or passage of time, or both,
would be an Event of Default (a "
Default
") and if such Default is known to the Trustee, the Trustee
shall mail to American, the Security Agent and each Noteholder notice of such Default within 90
days after the occurrence thereof except as otherwise permitted by the Trust Indenture Act. Except
in the case of a Payment Default, the Trustee may withhold the notice if and so long as it, in good
faith, determines that withholding the notice is in the interests of the Noteholders. (Indenture,
Section 5.05)
Remedies
If an Event of Default (other than an American Bankruptcy Event) occurs and is continuing, the
Trustee may, and upon receipt of written instruction of the holders of a majority of the principal
amount of the outstanding Notes, the Trustee shall, declare by notice to American, all unpaid
principal of, and accrued but unpaid interest on, the outstanding Notes and other amounts otherwise
payable under the Indenture, if any, to be due and payable immediately (without premium). If an
American Bankruptcy Event occurs, such amounts shall be due and payable without any declaration or
other act on the part of the Trustee or any Noteholder. The holders of a majority of the principal
amount of the outstanding Notes by notice to the Trustee may rescind an acceleration and its
consequences if (
i
) there has been paid to or deposited with the Trustee an amount sufficient to
pay all overdue installments of principal and interest on the Notes, and all other amounts owing
under the Operative Documents, that have become due otherwise than by such declaration of
acceleration and (
ii
) all other Events of Default, other than nonpayment of principal amount or
interest on the Notes that have become due solely because of such acceleration, have been cured or
waived
; provided
that no such rescission or annulment will extend to or affect any subsequent
Default or Event of Default or impair any right consequent thereon. (Indenture, Section 4.02(d))
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The holders of a majority of the principal amount of the outstanding Notes by notice to the
Trustee may authorize the Trustee to waive an existing Default or Event of Default and its
consequences, except a Default or Event of Default (
i
) in the payment of principal of, interest on,
or Make-Whole Amount, if any, with respect to, any Note (other than with the consent of the holder
thereof) or (
ii
) in respect of a covenant or provision of the Indenture or the Aircraft Security
Agreement that cannot be amended or supplemented without the consent of each Noteholder affected
thereby. See "— Modifications and Waiver of the Indenture and Certain Other Operative Documents."
When a Default or Event of Default is waived, it is cured and ceases, and American, the
Noteholders, the Trustee and the Security Agent shall be restored to their former positions and
rights hereunder respectively; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon. (Indenture, Section 4.05)
No Noteholder may institute any remedy with respect to the Indenture, the Aircraft Security
Agreement or the Notes unless such Noteholder has previously given to the Trustee written notice of
a continuing Event of Default, the holders of at least 25% of the principal amount of the
outstanding Notes have requested in writing that the Trustee pursue the remedy, such holder has
offered the Trustee indemnity against any loss, liability and expense satisfactory to the Trustee,
the Trustee has failed so to act for 60 days after receipt of the same and during such 60 day
period, the holders of a majority of the principal amount of the outstanding Notes have not given
the Trustee a direction inconsistent with the request. (Indenture, Section 4.06) Notwithstanding
the foregoing, the right of any Noteholder to receive payment when due of principal, interest and
Make-Whole Amount, if any, or to bring suit for the enforcement of any such payment, shall not be
impaired or affected without the consent of such Noteholder. (Indenture, Section 4.09)
The holders of a majority of the principal amount of the outstanding Notes may direct the
time, method and place of conducting any proceeding for any remedy available to the Trustee
(subject, in the case of any actions based on the status of the Trustee as trustee, to any
limitations otherwise expressly provided for in the Operative Documents) or exercising any trust or
power conferred on it;
provided
that the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction. The Trustee may refuse to follow any
direction or authorization if the Trustee has been advised by counsel that such action requested is
contrary to the Indenture or is otherwise contrary to law. The Trustee shall have no obligation to
take any action requested by the Noteholders unless it receives a satisfactory indemnification from
them for following any actions or omissions to act which are in accordance with any such direction
or authorization. (Indenture, Sections 4.02(b) and 5.01(d))
The Indenture and the Aircraft Security Agreement provide that, if an Event of Default has
occurred and is continuing, the Trustee or the Security Agent, as the case may be, may exercise
certain rights or remedies available to it under the Indenture and the Aircraft Security Agreement
or under applicable law. Such remedies include the right to take possession of any Aircraft
subject to the Aircraft Security Agreement and to sell all or any part of the Airframe or any
Engine comprising such Aircraft. (Indenture, Section 4.02(a); Aircraft Security Agreement, Section
4.02(a))
If an Event of Default occurs and is continuing, any sums held or received by the Trustee may
be applied to reimburse the Trustee and the Security Agent for any tax, expense or other loss
incurred by it and to pay any other amounts due to the Trustee or the Security Agent prior to any
payments to Noteholders. (Indenture, Section 3.03)
In the case of Chapter 11 bankruptcy proceedings in which an air carrier is a debtor, Section
1110 provides special rights to holders of security interests with respect to "equipment" (as
defined in Section 1110). Section 1110 provides that, subject to the limitations specified
therein, the right of a secured party with a security interest in "equipment" to take possession of
such equipment in compliance with the provisions of a security agreement and to enforce any of its
rights or remedies thereunder is not affected after 60 days after the date of the order for relief
in a case under Chapter 11 of the Bankruptcy Code by any provision of the Bankruptcy Code. Section
1110, however, provides that the right to take possession of an aircraft and enforce other remedies
may not be exercised for 60 days following the date of the order for relief (or such longer period
consented to by the holder of a security interest and approved by the court) and may not be
exercised at all after such period if the trustee in reorganization agrees, subject to the approval
of the court, to perform the debtor's obligations under the security agreement and cures all
defaults (other than a default of a kind specified in Section 365(b)(2) of the Bankruptcy Code,
such as a default that is a breach of a provision relating to the financial condition, bankruptcy
or insolvency of the debtor).
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"
Equipment
" is defined in Section 1110, in part, as "an aircraft, aircraft engine, propeller,
appliance, or spare part (as defined in section 40102 of title 49 of the United States Code) that
is subject to a security interest granted by, leased to, or conditionally sold to a debtor that, at
the time such transaction is entered into, holds an air carrier operating certificate issued
pursuant to chapter 447 of title 49 of the United States Code for aircraft capable of carrying 10
or more individuals or 6,000 pounds or more of cargo."
It is a condition to the subjection of an Aircraft to the lien of the Aircraft Security
Agreement that American's General Counsel provide an opinion to the Trustee and the Security Agent
that, if American were to become a debtor under Chapter 11 of the Bankruptcy Code, the Trustee
would be entitled to the benefits of Section 1110 with respect to the Airframe and Engines
comprising such Aircraft. This opinion will be subject to certain qualifications and assumptions.
The opinion of American's General Counsel will not address the possible replacement of an
Aircraft after an Event of Loss in the future, the consummation of which is conditioned upon the
contemporaneous delivery of an opinion of counsel to the effect that the Security Agent will be
entitled to Section 1110 benefits with respect to the replacement Airframe unless there is a change
in law or court interpretation that results in Section 1110 not being available. See "— Certain
Provisions of the Aircraft Security Agreement — Events of Loss." The opinion of American's General
Counsel also will not address the availability of Section 1110 with respect to the bankruptcy
proceedings of any possible lessee of an Aircraft if it is leased by American.
Post Default Appraisals
Upon the occurrence and continuation of an Event of Default, the Trustee will be required to
obtain three desktop appraisals from the Appraisers or other appraisers selected by the holders of
a majority of the principal amount of the outstanding Notes setting forth the appraised current
market value, current lease rate and distressed value (in each case, as defined by the
International Society of Transport Aircraft Trading or any successor organization) of the Aircraft
subject to the lien of the Aircraft Security Agreement (each such appraisal, an "
Appraisal
"). For
so long as any Event of Default shall be continuing, the Trustee will be required to obtain
additional Appraisals on the date that is 364 days from the date of the most recent Appraisal or if
an American Bankruptcy Event shall have occurred and is continuing, on the date that is 180 days
from the date of the most recent Appraisal and shall post such Appraisals on the DTC's Internet
bulletin board or make such other commercially reasonable efforts as the holders of a majority of
the principal amount of the outstanding Notes may deem appropriate to make such Appraisals
available to all Noteholders. (Indenture, Section 4.02(e))
Priority of Distributions
During the existence of an Event of Default, if the Notes have become due and payable in full
as described in "— Remedies," all amounts received by the Trustee in respect of the Notes will be
promptly paid in the following order:
•
to the Trustee or the Security Agent, to the extent required to pay, reimburse or
indemnify for any tax, expense or loss actually incurred by the Trustee or the Security
Agent and to pay certain out-of-pocket costs and expenses actually incurred by the
Trustee or the Security Agent;
•
to reimburse any Noteholder in respect of indemnification payments made to the
Trustee or the Security Agent in connection with actions taken by the Trustee or the
Security Agent at the direction of the Noteholders (including actions taken in
connection with the exercise of remedies), in each case, pro rata;
•
to the Noteholders, to the extent required to pay in full amounts due on the Notes;
and
•
to the Company. (Indenture, Section 3.03)
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Reports
Promptly after the occurrence of an American Bankruptcy Event or an Event of Default resulting
from the failure of American to make payments on any Note and on every Payment Date while the
American Bankruptcy Event or such Event of Default shall be continuing, the Trustee will provide to
the Noteholders and American a statement setting forth the following information:
•
after an American Bankruptcy Event, with respect to each Aircraft subject to the
lien of the Aircraft Security Agreement, whether such Aircraft is (
i
) subject to the
60-day period of Section 1110, (
ii
) subject to an election by American under Section
1110(a) of the Bankruptcy Code, (
iii
) covered by an agreement contemplated by Section
1110(b) of the Bankruptcy Code or (
iv
) not subject to any of (
i
), (
ii
) or (
iii
);
•
to the best of the Trustee's knowledge, after requesting such information from
American, (
i
) whether each such Aircraft is currently in service or parked in storage,
(
ii
) the maintenance status of such Aircraft and (
iii
) location of the Engines
associated with such Aircraft. American has agreed to provide such information upon
request of the Trustee, but no more frequently than every three months with respect to
each Aircraft so long as it is subject to the lien of the Aircraft Security Agreement;
•
the current aggregate outstanding principal amount of the Notes and the Allocable
Portion of the Notes for each such Aircraft as of the next Payment Date;
•
the expected amount of interest which will have accrued on the Notes as of the next
Payment Date;
•
other amounts expected to be paid to each person on the next Payment Date pursuant
to the Indenture;
•
details of the amounts expected to be paid on the next Payment Date identified by
reference to the relevant provision of the Indenture; and
•
after an American Bankruptcy Event, any operational reports filed by American with
the bankruptcy court which are available to the Trustee on a non-confidential basis.
(Indenture, Section 6.01)
In addition, American shall furnish to the Trustee within 120 days after the end of each
calendar year a certificate signed by a principal executive officer, principal financial officer or
principal accounting officer of American stating that to his or her knowledge during such preceding
calendar year no Default or Event of Default has occurred (or, if a Default or Event of Default
shall have occurred, describing all such Defaults or Events of Default of which he or she may have
knowledge). (Indenture, Section 10.03(c))
Modifications and Waiver of the Indenture and Certain Other Operative Documents
American and the Trustee may amend or supplement the Indenture, the Notes, the Aircraft
Security Agreement and any related document, in each case without notice to or the consent of the
Noteholders:
•
to evidence the succession of another entity to American and provide for the
assumption by such entity of American's obligations under the Indenture, the Notes, the
Aircraft Security Agreement and any related document in the case of a merger,
consolidation or transfer of all or substantially all of the assets of American;
•
to add to the covenants of American for the benefit of Noteholders, or surrender any
right or power conferred upon American in the Indenture, the Notes, the Aircraft
Security Agreement or any related document;
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•
to comply with requirements of the SEC or otherwise to the extent necessary in
connection with, or to continue, the qualification of the Indenture or any other
agreement under the Trust Indenture Act or under any similar U.S. federal statute or to
add provisions permitted by the Trust Indenture Act;
•
to add or change any of the provisions of the Indenture or the other Operative
Documents as necessary or advisable to obtain credit ratings on the Notes;
provided
that no such addition or change shall materially adversely affect the interest of any
Noteholder, as evidenced solely by the delivery of the certificate of an officer of
American;
•
to comply with any requirement of the SEC or of any other regulatory body or to
comply with any applicable law, rules, or regulations of or relating to any exchange or
quotation system on which any Notes are listed (or to facilitate any listing of any
Notes on any exchange or quotation system);
•
to comply with any requirement of DTC, Euroclear, Clearstream or like depositary, or
of the Trustee, in respect of the provisions of the Indenture, the Notes, the Aircraft
Security Agreement or any related document, relating to transfers and exchanges of the
Notes or beneficial interests therein, or to include on the Notes any legend as may be
required by law or as may otherwise be necessary or advisable;
•
to provide for any successor or additional Trustee or Security Agent with respect to
the Notes or to add to or change any of the provisions of the Indenture or the Aircraft
Security Agreement as shall be necessary or advisable to provide for or facilitate the
administration of the trusts under the Indenture or the Aircraft Security Agreement by
more than one Trustee or Security Agent, respectively;
•
to provide for the delivery of Notes or any supplement to the Indenture, the Notes,
the Aircraft Security Agreement or any other related document in or by means of any
computerized, electronic, or other medium, including computer diskette;
•
to provide for the guarantee by AMR Corporation or another entity of the Indenture,
the Notes, the Aircraft Security Agreement or any other related document, and to make
appropriate provisions in respect of such guarantor;
•
to correct, supplement or amplify the description of the collateral, or convey,
transfer, assign, mortgage or pledge any property to or with the Trustee or Security
Agent;
•
to cure any ambiguity or correct any mistake, defect or inconsistency;
•
to make any other change not inconsistent with the Indenture or the Aircraft
Security Agreement;
provided
that such action does not materially adversely affect the
interests of any Noteholder. (Indenture, Section 12.01)
In addition, subject to certain limited exceptions described below, American and the Trustee
may otherwise amend or supplement the Indenture, the Notes, the Aircraft Security Agreement and any
other related documents, with the consent of the holders a majority of the principal amount of the
outstanding Notes.
Whether before or after the occurrence of an Event of Default, the holders a majority of the
principal amount of the outstanding Notes may authorize the Trustee to, and the Trustee upon such
authorization shall, waive compliance by American with any provision of the Indenture, the Notes,
the Aircraft Security Agreement or any
related document (other than certain provisions in the Indenture and the Aircraft Security
Agreement as described below). However, no amendment, supplement or waiver of any provision in the
Indenture, any Note, the Aircraft Security Agreement or any related document may, without the
consent of each Noteholder affected:
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•
reduce the amount of Notes whose holders must consent to an amendment, supplement or
waiver;
•
reduce the rate or change the time for payment of interest on any Note;
•
reduce the amount or change the time for payment of principal of, redemption price
of, or Make-Whole Amount, if any, with respect to (in each case, whether on redemption
or otherwise), any Note;
•
change the place of payment where, or the coin or currency in which any Note (or the
redemption price thereof), interest thereon or Make-Whole Amount, if any, with respect
thereto, is payable;
•
change the priority of distributions and application of payments specified in the
Indenture in a manner materially adverse to the Noteholders;
•
impair the right of any Noteholder to institute suit for the enforcement of any
amount of principal or interest payable on any Note when due;
•
waive a Payment Default with respect to any Note; or
•
create any lien with respect to any part of the collateral, including any Aircraft
subjected to the lien of the Aircraft Security Agreement, that is prior to or
pari
passu
with the lien thereon pursuant to the Indenture or the Aircraft Security
Agreement, as applicable, except as permitted by the Indenture or the Aircraft Security
Agreement, or deprive the Trustee or the Security Agent of the benefit of the lien on
the collateral, including any such Aircraft, created by the Indenture or the Aircraft
Security Agreement, except as permitted by the Indenture or the Aircraft Security
Agreement. (Indenture, Section 12.02)
American or any affiliate of American may, to the extent permitted by applicable law, at any
time purchase or otherwise acquire any or all of the Notes, including in the open market or by
tender at any price or by private agreement. In determining whether the holders of the required
principal amount of the Notes have consented to an amendment, modification or waiver, any such
Notes owned by American or any affiliate of American will be disregarded and deemed not
outstanding. (Indenture, Section 2.13)
Merger, Consolidation and Transfer of Assets
American is prohibited from consolidating with or merging into any other entity where American
is not the surviving entity or conveying, transferring, or leasing substantially all of its assets
as an entirety to any other entity unless:
•
the successor or transferee entity is organized and validly existing under the laws
of the United States or any state thereof or the District of Columbia;
•
the successor or transferee entity is, if and to the extent required under Section
1110 in order that the Trustee continues to be entitled to any benefits of Section 1110
with respect to an Aircraft that has been subjected to the lien of the Aircraft
Security Agreement, a "
citizen of the United States
" (as defined in Title 49 of the
United States Code relating to aviation (the "
Transportation Code
")) holding an air
carrier operating certificate issued by the Secretary of Transportation pursuant to
Chapter 447 of the Transportation Code;
•
the successor or transferee entity expressly assumes all of the obligations of
American contained in the Notes, the Indenture and the Aircraft Security Agreement;
•
if the Aircraft that have been subjected to the lien of the Aircraft Security
Agreement are, at the time, registered with the FAA or such person is located in a
"Contracting State" (as such term is
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used in the Cape Town Treaty), the transferor or
successor entity makes such filings and recordings with the FAA pursuant to the
Transportation Code and registrations under the Cape Town Treaty, or, if the Aircraft
are, at the time, not registered with the FAA, the transferor or successor entity makes
such filings and recordings with the applicable aviation authority, as are necessary to
evidence such consolidation, merger or transfer; and
•
American has delivered a certificate and an opinion or opinions of counsel
indicating that such transaction, in effect, complies with such conditions.
In addition, after giving effect to such transaction, no Event of Default shall have occurred
and be continuing. (Indenture,
Section 10.02(e))
None of the Notes or any of the other Operative Documents contain any covenants or provisions
which may afford the Trustee, the Security Agent or Noteholders protection in the event of a highly
leveraged transaction, including transactions effected by management or affiliates, which may or
may not result in a change in control of American.
Book-Entry, Delivery and Form
The New Notes will be issued in book-entry form only, which means that the New Notes will be
represented by one or more permanent global certificates ("
Global Notes
") registered in the name of
DTC or its nominee. You may hold interests in the Notes directly through DTC, Euroclear or
Clearstream if you are a participant in any of these clearing systems, or indirectly through
organizations which are participants in those systems. Links have been established among DTC,
Clearstream and Euroclear to facilitate the issuance of the Notes and cross-market transfers of the
Notes associated with secondary market trading. DTC is linked indirectly to Clearstream and
Euroclear through the depositary accounts of their respective U.S. depositaries. Notes in
book-entry form can be exchanged for definitive Notes under the circumstances described under "—The
Notes."
The Notes
Book-Entry Procedures for the Global Notes
All interests in the Global Notes, including those held through Euroclear or Clearstream, may
be subject to the procedures and requirements of DTC. Those interests held through Euroclear or
Clearstream may also be subject to the procedures and requirements of their systems. The
descriptions of the operations and procedures of DTC, Euroclear and Clearstream described below are
provided solely as a matter of convenience. These operations and procedures are solely within the
control of these settlement systems and are subject to change by them from time to time. Neither we
nor any paying agent, if applicable, takes any responsibility for these operations or procedures,
and investors are urged to contact the relevant system or its participants directly to discuss
these matters.
The clearing systems have advised us as follows:
DTC
DTC is a limited-purpose trust company organized under the New York Banking Law, a banking
organization within the meaning of the New York Banking Law, a member of the U.S. Federal Reserve
System, a clearing corporation within the meaning of the New York Uniform Commercial Code and a
clearing agency registered under Section 17A of the Exchange Act. DTC holds securities that its
participants, known as DTC participants, deposit with DTC. DTC also facilitates the settlement
among DTC participants of securities transactions, such as transfers and pledges, in deposited
securities through computerized records for DTC participants' accounts. This eliminates the need to
exchange certificates. DTC participants include securities brokers and dealers, banks, trust
companies, clearing corporations and certain other organizations. DTC's book-entry system
is also used by other organizations such as securities brokers and dealers, banks and trust
companies that work through a DTC participant. The rules that apply to DTC and its participants are
on file with the SEC.
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We expect that pursuant to procedures established by DTC:
•
upon deposit of each Global Note, DTC will credit the accounts of participants in
DTC with an interest in the Global Note; and
•
ownership of the Notes will be shown on, and the transfer of ownership of the Notes
will be effected only through, records maintained by DTC, with respect to the interests
of participants in DTC, and the records of participants and indirect participants, with
respect to the interests of persons other than participants in DTC.
The laws of some jurisdictions may require that some purchasers of securities take physical
delivery of the securities in definitive form. Accordingly, the ability to transfer interests in
the Notes represented by a Global Note to these persons may be limited. In addition, because DTC
can act only on behalf of its participants, who in turn act on behalf of persons who hold interests
through participants, the ability of a person having an interest in Notes represented by a Global
Note to pledge or transfer that interest to persons or entities that do not participate in DTC's
system, or to otherwise take actions in respect of that interest, may be affected by the lack of a
physical definitive security in respect of the interest.
So long as DTC or its nominee is the registered owner of a Global Note, DTC or the nominee, as
the case may be, will be considered the sole owner or Noteholder represented by the Global Note for
all purposes under the Indenture. Except as provided below, owners of beneficial interests in a
Global Note:
•
will not be entitled to have Notes represented by the Global Note registered in
their names;
•
will not receive or be entitled to receive physical delivery of certificated Notes;
and
•
will not be considered the owners or Noteholders under the Indenture for any
purpose, including with respect to the giving of any direction, instruction or approval
to the Trustee under the Indenture.
Accordingly, each holder owning a beneficial interest in a Global Note must rely on the
procedures of DTC and, if the holder is not a participant or an indirect participant in DTC, on the
procedures of the DTC participant through which the holder owns its interest, to exercise any
rights of a Noteholder under the Indenture or the Global Note. We understand that under existing
industry practice, if we request any action of Noteholder, or a holder that is an owner of a
beneficial interest in a Global Note desires to take any action that DTC, as the holder of the
Global Note, is entitled to take, then DTC would authorize its participants to take the action and
the participants would authorize holders owning through participants to take the action or would
otherwise act upon the instruction of such holders. Neither we, the Trustee nor any paying agent,
if applicable will have any responsibility or liability for any aspect of the records relating to
or payments made on account of Notes by DTC, or for maintaining, supervising or reviewing any
records of DTC relating to the Notes.
Payments with respect to the principal of, Make-Whole Amount, if any, and interest on, any
Notes represented by a Global Note registered in the name of DTC or its nominee on the applicable
record date will be payable by the Trustee or any paying agent, if applicable, to or at the
direction of DTC or its nominee in its capacity as the registered holder of the Global Note
representing those Notes under the Indenture. Under the terms of the Indenture, we, the Trustee and
any paying agent, if applicable may treat the persons in whose names the Notes, including the
Global Notes, are registered as the owners of the Notes for the purpose of receiving payment on the
Notes and for any and all other purposes whatsoever. Accordingly, neither we, the Trustee nor any
paying agent, if applicable, has or will have any responsibility or liability for the payment of
amounts to owners of beneficial interests in a Global Note, including principal, premium, if any,
additional interest, if any, and interest. Payments by the participants and the indirect
participants in DTC to the owners of beneficial interests in a Global Note will be governed by
standing instructions and customary industry practice and will be the responsibility of the
participants
or the indirect participants and DTC. Transfers between participants in DTC will be effected
in accordance with DTC's procedures, and will be settled in same-day funds. Transfers between
participants in Euroclear or Clearstream will be effected in the ordinary way in accordance with
their respective rules and operating procedures.
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Upon receipt of any payment of principal or interest, DTC will credit DTC participants'
accounts on the payment date according to such participants' respective holdings of beneficial
interests in the Global Notes as shown on DTC's records. In addition, it is DTC's current practice
to assign any consenting or voting rights to DTC participants whose accounts are credited with
securities on a record date by using an omnibus proxy. Payments by DTC participants to owners of
beneficial interests in the Global Notes, and voting by DTC participants, will be governed by the
customary practices between the DTC participants and owners of beneficial interests, as is the case
with securities held for the accounts of customers registered in street name. However, these
payments will be the responsibility of the DTC participants and not of DTC, the Trustee, any paying
agent, if applicable, or us.
Clearstream
Clearstream is incorporated under the laws of Luxembourg as a professional depositary.
Clearstream holds securities for its participating organizations, known as Clearstream
participants, and facilitates the clearance and settlement of securities transactions between
Clearstream participants through electronic book-entry changes in accounts of Clearstream
participants, eliminating the need for physical movement of certificates. Clearstream provides to
Clearstream participants, among other things, services for safekeeping, administration, clearance
and settlement of internationally traded securities and securities lending and borrowing.
Clearstream interfaces with domestic markets in several countries. As a professional depositary,
Clearstream is subject to regulation by the Luxembourg Monetary Institute. Clearstream participants
are recognized financial institutions around the world, including underwriters, securities brokers
and dealers, banks, trust companies, clearing corporations and certain other organizations.
Indirect access to Clearstream is also available to others, such as banks, brokers, dealers and
trust companies that clear through or maintain a custodial relationship with a Clearstream
participant either directly or indirectly.
Distributions with respect to Global Notes held beneficially through Clearstream will be
credited to cash accounts of Clearstream participants in accordance with its rules and procedures,
to the extent received by the U.S. depositary for Clearstream.
Euroclear
Euroclear was created in 1968 to hold securities for its participants, known as Euroclear
participants, and to clear and settle transactions between Euroclear participants and between
Euroclear participants and participants of certain other securities intermediaries through
simultaneous electronic book-entry delivery against payment, eliminating the need for physical
movement of certificates and any risk from lack of simultaneous transfers of securities and cash.
Euroclear is owned by Euroclear Clearance System Public Limited Company and operated through a
license agreement by Euroclear Bank, S.A./N.V., known as the Euroclear operator. The Euroclear
operator provides Euroclear participants, among other things, with safekeeping, administration,
clearance and settlement, securities lending and borrowing and related services. Euroclear
participants include banks (including central banks), securities brokers and dealers and other
professional financial intermediaries.
Indirect access to Euroclear is also available to others that clear through or maintain a
custodial relationship with a Euroclear participant, either directly or indirectly.
The Euroclear operator is regulated and examined by the Belgian Banking and Finance
Commission. Securities clearance accounts and cash accounts with the Euroclear operator are
governed by the Terms and Conditions Governing Use of Euroclear and the related Operating
Procedures of the Euroclear System, and applicable Belgian law, collectively referred to as the
terms and conditions. The terms and conditions govern transfers of securities and cash within
Euroclear, withdrawals of securities and cash from Euroclear, and receipts of payments with respect
to securities in Euroclear. All securities in Euroclear are held on a fungible basis without
attribution of specific certificates to specific securities clearance accounts. The Euroclear
operator acts under the terms and conditions only on behalf of Euroclear participants, and has no
record of or relationship with persons holding through Euroclear participants.
Distributions with respect to Global Notes held beneficially through Euroclear will be
credited to the cash accounts of Euroclear participants in accordance with the terms and
conditions, to the extent received by the U.S. depositary for Euroclear.
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Global Clearance and Settlement Procedures
Secondary market trading between DTC participants will occur in the ordinary way in accordance
with DTC rules and will be settled in same-day funds using DTC's Same-Day Funds Settlement System.
Secondary market trading between Clearstream participants and/or Euroclear participants will occur
in the ordinary way in accordance with the applicable rules and operating procedures of Clearstream
and Euroclear and will be settled using the procedures applicable to conventional eurobonds in
same-day funds.
Cross-market transfers between persons holding directly or indirectly through DTC
participants, on the one hand, and directly or indirectly through Clearstream or Euroclear
participants, on the other, will be effected in DTC in accordance with DTC rules on behalf of the
European international clearing system by its U.S. depositary; however, these cross-market
transactions will require delivery of instructions to the European international clearing system by
the counterparty in that system in accordance with its rules and procedures and within its
established deadlines (European time). The European international clearing system will, if a
transaction meets its settlement requirements, deliver instructions to its U.S. depositary to take
action to effect final settlement on its behalf by delivering or receiving interests in the
relevant Global Notes in DTC, and making or receiving payment in accordance with normal procedures
for settlement in DTC. Clearstream participants and Euroclear participants may not deliver
instructions directly to their respective U.S. depositary.
Because of time-zone differences, credits of Global Notes received in Clearstream or Euroclear
as a result of a transaction with a DTC participant will be made during subsequent securities
settlement processing and dated the business day following the DTC settlement date. The credits or
any transactions in the Global Notes settled during this processing will be reported to the
Clearstream or Euroclear participants on the same business day. Cash received in Clearstream or
Euroclear as a result of sales of the Global Notes by or through a Clearstream participant or a
Euroclear participant to a DTC participant will be received with value on the DTC settlement date
but will be available in the Clearstream or Euroclear cash account only as of the business day
following settlement in DTC.
Although DTC, Clearstream and Euroclear are expected to follow these procedures in order to
facilitate transfers of interests in the Global Notes among participants of DTC, Clearstream and
Euroclear, they will be under no obligation to perform or continue to perform these procedures and
these procedures may be changed or discontinued at any time. Neither we, the Trustee nor any paying
agent, if applicable, will have any responsibility for the performance by DTC, Euroclear or
Clearstream or their respective participants or indirect participants of their respective
obligations under the rules and procedures governing their operations.
Exchanges of Book-Entry Notes for Certificated Notes
You may not exchange your beneficial interest in a Global Note for a Note in certificated form
unless:
(1)
DTC (
a
) notifies us that it is unwilling or unable to continue as depository
for the Global Note or (
b
) has ceased to be a clearing agency registered under the
Exchange Act, and in either case we thereupon fail to appoint a successor depository;
(2)
we, at our option, notify the Trustee in writing that we are electing to issue
the Notes in certificated form; or
(3)
an Event of Default shall have occurred and be continuing with respect to the
Notes and the Trustee has received a written request from DTC to issue Notes in
certificated form.
In all cases, certificated Notes delivered in exchange for any Global Note or beneficial
interests therein will be registered in the names, and issued in any approved denominations,
requested by or on behalf of the depository (in accordance with its customary procedures). Any such
exchange will be effected through the DTC
Deposit/Withdraw at Custodian system and an appropriate adjustment will be made in the records
of the security registrar to reflect a decrease in the principal amount of the relevant Global
Note.
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Indemnification
American has agreed to indemnify the Trustee and the Security Agent, but not the Noteholders,
for certain losses, claims and other matters. (Indenture, Section 8.02) Neither the Trustee nor
the Security Agent will be indemnified, however, for actions arising from its negligence or willful
misconduct, or for the inaccuracy of any representation or warranty made in its individual capacity
under the Indenture or the Aircraft Security Agreement.
Neither the Trustee nor the Security Agent will be required to take any action or refrain from
taking any action (other than notifying the Noteholders if it knows of an Event of Default as
described under "—Events of Default") unless it has received indemnification satisfactory to it
against any risks incurred in connection therewith. (Indenture, Section 5.01(d); Aircraft Security
Agreement, Section 5.01(d))
Certain Provisions of the Aircraft Security Agreement
The following describes the terms of the Aircraft Security Agreement that will apply to each
Aircraft that has been subjected to the lien of the Aircraft Security Agreement.
Maintenance and Operation
Under the terms of the Aircraft Security Agreement, American will be obligated, among other
things and at its expense, to keep each Aircraft duly registered, and to maintain, service, repair,
and overhaul such Aircraft (or cause the same to be done) so as to keep it in such condition as
necessary to maintain the airworthiness certificate for such Aircraft in good standing at all times
(other than during temporary periods of storage, maintenance, testing or modification or during
periods of grounding by applicable governmental authorities). (Aircraft Security Agreement,
Sections 7.02(a), (c) and (e))
American will agree not to maintain, use, service, repair, overhaul or operate any Aircraft in
violation of any law, rule or regulation of any government having jurisdiction over such Aircraft,
or in violation of any airworthiness certificate, license or registration relating to such Aircraft
issued by such government, except to the extent American (or any lessee) is contesting in good
faith the validity or application of any such law, rule or regulation or airworthiness certificate,
license or registration in any manner that does not involve any material risk of sale, forfeiture
or loss of such Aircraft or impair the lien of the Aircraft Security Agreement with respect to such
Aircraft. (Aircraft Security Agreement, Section 7.02(b))
American must make all alterations, modifications, and additions to each Airframe and Engine
necessary to meet the applicable requirements of the Federal Aviation Administration (the "
FAA
" )
or any other applicable governmental authority of another jurisdiction in which the related
Aircraft may then be registered; provided that American (or any lessee) may in good faith contest
the validity or application of any such requirement in any manner that does not involve, among
other things, a material risk of sale, forfeiture or loss of such Aircraft and does not adversely
affect the Security Agent's interest in such Aircraft under (and as defined in) the Aircraft
Security Agreement. American (or any lessee) may add further parts and make other alterations,
modifications, and additions to any Airframe or any Engine as American (or any such lessee) may
deem desirable in the proper conduct of its business, including removal (without replacement) of
parts, so long as such alterations, modifications, additions, or removals do not materially
diminish the value or utility of such Airframe or Engine below its value or utility immediately
prior to such alteration, modification, addition, or removal (assuming such Airframe or Engine was
maintained in accordance with the Aircraft Security Agreement), except that the value (but not the
utility) of any Airframe or Engine may be reduced from time to time by the value of any such parts
which have been removed that American deems obsolete or no longer suitable or appropriate for use
on such Airframe or Engine. All parts (with certain exceptions) incorporated or installed in or
added to such Airframe or Engine as a result of such alterations, modifications or additions will
be subject to the lien of the Aircraft Security Agreement. American (or any lessee) is permitted to
remove (without replacement) parts that are in addition to, and not in replacement of or
substitution for, any part originally incorporated or installed in or attached to an Airframe or
Engine at the time of delivery thereof to
American, as well as any part that is not required to be incorporated or installed in or
attached to such Airframe or Engine pursuant to applicable requirements of the FAA or other
jurisdiction in which the related Aircraft may then be registered, or any part that can be removed
without materially diminishing the requisite value or utility of such Aircraft. (Aircraft Security
Agreement, Section 7.04(c))
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Except as set forth above, American will be obligated to replace or cause to be replaced all
parts that are incorporated or installed in or attached to any Airframe or any Engine and become
worn out, lost, stolen, destroyed, seized, confiscated, damaged beyond repair or permanently
rendered unfit for use. Any such replacement parts will become subject to the lien of the Aircraft
Security Agreement in lieu of the part replaced. (Aircraft Security Agreement, Section 7.04(a))
Registration, Leasing and Possession
Although American has certain re-registration rights, as described below, American generally
is required to keep each Aircraft duly registered under the Transportation Code with the FAA and to
record the Aircraft Security Agreement under the Federal Aviation Act. (Aircraft Security
Agreement, Section 7.02(e)) In addition, American will register the "international interests"
created pursuant to the Aircraft Security Agreement under the Cape Town Convention on International
Interests in Mobile Equipment and the related Aircraft Equipment Protocol (the "
Cape Town Treaty
").
(Aircraft Security Agreement, Section 7.02(e)) Although American has no current intention to do so,
American will be permitted to register an Aircraft in certain jurisdictions outside the United
States, subject to certain conditions specified in the Aircraft Security Agreement. These
conditions include a requirement that the laws of the new jurisdiction of registration will give
effect to the lien of and the security interest created by the Aircraft Security Agreement in the
applicable Aircraft. (Aircraft Security Agreement, Section 7.02(e)) American also will be
permitted, subject to certain limitations, to lease any Aircraft to any United States certificated
air carrier, to certain foreign air carriers or to certain manufacturers of airframes or engines
(or their affiliates acting under an unconditional guarantee of such manufacturer). In addition,
subject to certain limitations, American will be permitted to transfer possession of any Airframe
or any Engine other than by lease, including transfers of possession by American or any lessee in
connection with certain interchange and pooling arrangements, "wet leases," and transfers in
connection with maintenance or modifications and transfers to the government of the United States,
Canada, France, Germany, Japan, The Netherlands, Sweden, Switzerland and the United Kingdom or any
instrumentality or agency thereof. (Aircraft Security Agreement, Section 7.02(a)) There will be no
general geographical restrictions on American's (or any lessee's) ability to operate any Aircraft.
The extent to which the Security Agent's lien would be recognized in an Aircraft if such Aircraft
were located in certain countries is uncertain. Permitted foreign air carrier lessees are not
limited to those based in a country that is a party to the Convention on the International
Recognition of Rights in Aircraft (Geneva 1948) (the "
Mortgage Convention
") or a party to the Cape
Town Treaty. It is uncertain to what extent the Security Agent's security interest would be
recognized if an Aircraft is registered or located in a jurisdiction not a party to the Mortgage
Convention or the Cape Town Treaty. The Cape Town Treaty provides, that, subject to certain
exceptions, a registered "international interest" has priority over a subsequently registered
interest and over an unregistered interest for purposes of the law of those jurisdictions that have
ratified the Cape Town Treaty. There are many jurisdictions in the world that have not ratified the
Cape Town Treaty, and an Aircraft may be located in any such jurisdiction from time to time. There
is no legal precedent with respect to the application of the Cape Town Treaty in any jurisdiction
and therefore it is unclear how the Cape Town Treaty will be applied.
In addition, any exercise of the right to repossess an Aircraft may be difficult, expensive
and time-consuming, particularly when such Aircraft is located outside the United States or has
been registered in a foreign jurisdiction or leased to or in possession of a foreign or domestic
operator. Any such exercise would be subject to the limitations and requirements of applicable law,
including the need to obtain consents or approvals for deregistration or re-export of such
Aircraft, which may be subject to delays and political risk. When a defaulting lessee or other
permitted transferee is the subject of a bankruptcy, insolvency, or similar event such as
protective administration, additional limitations may apply. See "Risk Factors — Risk Factors
Relating to the Notes and the Exchange Offer — Repossession of Aircraft may be difficult,
time-consuming and expensive."
In addition, some jurisdictions may allow for other liens or other third party rights to have
priority over the Security Agent's security interest in an Aircraft. As a result, the benefits of
the Security Agent's security interest in an Aircraft may be less than they would be if such
Aircraft were located or registered in the United States.
Upon repossession of such Aircraft, the Aircraft may need to be stored and insured. The costs
of storage and insurance can be significant, and the incurrence of such costs could reduce the
proceeds available to repay the Noteholders. In addition, at the time of foreclosing on the lien on
an Aircraft under the Aircraft Security Agreement, the Airframe relating thereto subject to the
Aircraft Security Agreement might not be the equipped with the Engines
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associated with such
Aircraft and under the Aircraft Security Agreement. If American fails to transfer title to engines
not owned by American that are attached to repossessed Aircraft, it could be difficult, expensive
and time-consuming to assemble an Aircraft consisting of an Airframe and Engines subject to the
Aircraft Security Agreement.
Liens
American is required to maintain each Aircraft free of any liens, other than the lien of the
Aircraft Security Agreement, any other rights existing pursuant to the other Operative Documents
related thereto, the rights of others in possession of such Aircraft in accordance with the terms
of the Aircraft Security Agreement and liens attributable to other parties to the Operative
Documents related thereto and other than certain other specified liens, including but not limited
to (
i
) liens for taxes either not yet overdue or being contested in good faith by appropriate
proceedings so long as such proceedings do not involve any material risk of the sale, forfeiture or
loss of the Airframe or the Engine related to such Aircraft or the Security Agent's interest
therein or impair the lien of the Aircraft Security Agreement; (
ii
) materialmen's, mechanics',
workers', landlord's, repairmen's, employees' or other similar liens arising in the ordinary course
of business and securing obligations that either are not yet overdue for more than 60 days or are
being contested in good faith by appropriate proceedings so long as such proceedings do not involve
any material risk of the sale, forfeiture or loss of the Airframe or the Engine related to such
Aircraft or the Security Agent's interest therein or impair the lien of the Aircraft Security
Agreement; (
iii
) judgment liens so long as such judgment is discharged or vacated within 60 days or
the execution of such judgment is stayed pending appeal or such judgment is discharged, vacated or
reversed within 60 days after expiration of such stay and so long as during any such 60 day period
there is not, or any such judgment or award does not involve, any material risk of the sale,
forfeiture or loss of any Aircraft, any Airframe or any Engine or the interest of the Security
Agent therein or impair the lien of the Aircraft Security Agreement; (
iv
) salvage or similar rights
of insurers under insurance policies maintained by American; (
v
) any other lien as to which
American has provided a bond, cash collateral or other security adequate in the reasonable opinion
of the Security Agent; and (
vi
) Liens approved in writing by the Security Agent with the consent of
the Trustee. (Aircraft Security Agreement, Section 7.01)
Insurance
Subject to certain exceptions, American is required to maintain, at its expense (or at the
expense of a lessee), all-risk aircraft hull insurance covering each Aircraft (including, without
limitation, war risk and allied perils insurance if and to the extent the same is maintained by
American (or any permitted lessee) with respect to other aircraft operated by American (or any
permitted lessee) on same or similar routes), at all times in an amount not less than 110% of the
Allocable Portion of the Notes relating to such Aircraft. However, after giving effect to
self-insurance permitted as described below, the amount payable under such insurance may be less
than such amounts payable with respect to such Allocable Portion. If an Aircraft suffers an Event
of Loss, insurance proceeds up to an amount equal to the Allocable Portion of the Notes relating to
such Aircraft, together with accrued but unpaid interest thereon, plus an amount equal to the
interest that will accrue on such Allocable Portion of the Notes during the period commencing on
the day following the date of payment of such insurance proceeds to the Security Agent and ending
on the loss payment date (the sum of those amounts being, the "
Loan Amount
" for such Aircraft) will
be paid to the Security Agent. If an Aircraft or Engine suffers loss or damage not constituting an
Event of Loss but involving insurance proceeds in excess of $12,000,000 (in the case of a Boeing
777-223ER), $8,000,000 (in the case of a Boeing 767-323ER) or $6,000,000 (in the case of a Boeing
737-823), proceeds in excess of such specified amounts up to the applicable Loan Amount will be
payable to the Security Agent, and the proceeds up to such specified amounts and proceeds in excess
of the applicable Loan Amount will be payable directly to American unless there is a continuing
Event of Default or Payment Default, in which event all insurance proceeds will be payable to the
Security Agent. So long as the loss does not constitute an Event of Loss, insurance proceeds will
be applied to repair or replace the equipment. (Aircraft Security Agreement, Sections 7.06(b) and
7.06(d))
In addition, American is obligated to maintain or cause to be maintained aircraft liability
insurance at its expense (or at the expense of a lessee), including, without limitation, bodily
injury, personal injury and property
damage liability insurance (exclusive of manufacturer's product liability insurance), and
contractual liability insurance with respect to each Aircraft. Such liability insurance must be
underwritten by insurers of recognized responsibility. The amount of such liability insurance
coverage may not be less than the amount of aircraft liability insurance from time to time
applicable to similar aircraft in American's fleet on which American carries insurance
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and operated
by American on the same or similar routes on which the Aircraft is operated. (Aircraft Security
Agreement, Section 7.06(a))
American may self-insure under a program applicable to all aircraft in its fleet, but the
amount of such self-insurance in the aggregate may not exceed for any 12-month policy year 1% of
the average aggregate insurable value (during the preceding policy year) of all aircraft on which
American carries insurance, unless an insurance broker of national standing certifies that the
standard among all other major U.S. airlines is a higher level of self-insurance, in which case
American may self-insure the Aircraft to such higher level. In addition, American may self-insure
to the extent of (
i
) any applicable deductible per occurrence that is not in excess of the amount
customarily allowed as a deductible in the industry or is required to facilitate claims handling,
or (
ii
) any applicable mandatory minimum per aircraft (or, if applicable, per annum or other
period) liability insurance or hull insurance deductibles imposed by the aircraft liability or hull
insurers. (Aircraft Security Agreement, Section 7.06(c))
In respect of each Aircraft, American is required to name the Security Agent as an additional
insured party under the liability insurance policy required with respect to such Aircraft. In
addition, the hull and liability insurance policies will be required to provide that, in respect of
the interests of such additional insured party, the insurance shall not be invalidated or impaired
by any action or inaction of American. (Aircraft Security Agreement, Sections 7.06(a) and 7.06(b))
Events of Loss
If an Event of Loss occurs with respect to an Airframe or the Airframe and one or more Engines
of an Aircraft, American must elect within 90 days after such occurrence (
i
) to replace such
Airframe and any such Engines or (
ii
) to pay the Security Agent the Allocable Portion of the Notes
relating to such Aircraft together with interest accrued thereon. Depending upon American's
election, not later than the first Business Day after the 120th day following the date of
occurrence of such Event of Loss, American will (
i
) redeem the Notes in part under the Indenture by
paying to the Trustee the Allocable Portion of the Notes relating to such Aircraft, together with
accrued interest thereon, but without any premium or (
ii
) substitute an airframe (or airframe and
one or more engines, as the case may be) for the Airframe, or Airframe and Engine(s), that suffered
such Event of Loss. If American elects to replace an Airframe (or Airframe and one or more Engines,
as the case may be) that suffered such Event of Loss, it will do so with an airframe or airframe
and engines of the same model as the Airframe or Airframe and Engines to be replaced or a
comparable or improved model, and with a value and utility (without regard to hours or cycles) at
least equal to the Airframe or Airframe and Engines to be replaced, assuming that such Airframe and
such Engines were in the condition and repair required by the Aircraft Security Agreement. American
is also required to provide to the Security Agent opinions of counsel (
i
) to the effect that
Security Agent will be entitled to the benefits of Section 1110 with respect to the replacement
airframe (unless, as a result of a change in law or governmental or judicial interpretation, such
benefits were not available with respect to the Aircraft that suffered the Event of Loss
immediately prior to such replacement), and (
ii
) as to the due registration of the replacement
aircraft, the due recordation of a supplement to the Aircraft Security Agreement relating to such
replacement aircraft, the registration of such replacement airframe with the International Registry
under the Cape Town Treaty, if applicable, and the validity and perfection of the security interest
granted to the Security Agent in the replacement aircraft. If American elects not to replace such
Airframe, or Airframe and Engine(s), then upon payment of the Allocable Portion of the Notes issued
with respect to the related Aircraft, together with accrued but unpaid interest thereon (but
without any premium), the lien of the Aircraft Security Agreement will terminate with respect to
such Aircraft, and the obligation of American thereafter to make the scheduled interest and
principal payments with respect to such Allocable Portion of the Notes will cease. The payments
made under the Aircraft Security Agreement by American will be deposited with the Security Agent.
Amounts in excess of the amounts due and owing under the Allocable Portion of the Notes issued with
respect to such Aircraft will be distributed by the Security Agent to American. (Indenture,
Sections 2.19(c) and 3.02; Aircraft Security Agreement, Sections 7.05(a) and 7.05(c))
If an Event of Loss occurs with respect to an Engine alone, American will be required to
replace such Engine within 120 days after the occurrence of such Event of Loss with another engine,
free and clear of all liens
(other than certain permitted liens). Such replacement engine will be the same model as the
Engine to be replaced, or a comparable or improved model of the same or another manufacturer,
suitable for installation and use on the related Airframe, and will have a value and utility
(without regard to hours or cycles) at least equal to the Engine to
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be replaced, assuming that such
Engine was in the condition and repair required by the terms of the Aircraft Security Agreement.
(Aircraft Security Agreement, Section 7.05(b))
An "
Event of Loss
" with respect to any Aircraft, any Airframe or any Engine means any of the
following events with respect to such property:
•
the loss of such property or of the use thereof due to destruction, damage to such
property beyond repair or rendition of such property permanently unfit for normal use
for any reason whatsoever;
•
any damage to such property that results in an insurance settlement with respect to
such property on the basis of a total loss or a compromised or constructive total loss;
•
the theft, hijacking or disappearance of such property for a period exceeding 180
consecutive days;
•
the requisition for use of such property by any government (other than a requisition
for use by the government of Canada, France, Germany, Japan, The Netherlands, Sweden,
Switzerland, the United Kingdom or the United States or the government of the country
of registry of the related Aircraft) that results in the loss of possession of such
property by American (or any lessee) for a period exceeding 12 consecutive months;
•
the operation or location of such Aircraft, while under requisition for use by any
government, in any area excluded from coverage by any insurance policy in effect with
respect to such Aircraft required by the terms of the Aircraft Security Agreement,
unless American has obtained indemnity or insurance in lieu thereof from such
government;
•
any requisition of title or other compulsory acquisition, capture, seizure,
deprivation, confiscation or detention (excluding requisition for use not involving a
requisition of title) for any reason of such Aircraft, Airframe, or Engine by any
government that results in the loss of title or use of such Aircraft, Airframe or
Engine by American (or a permitted lessee) for a period in excess of 180 consecutive
days;
•
as a result of any law, rule, regulation, order or other action by the FAA or other
government of the country of registry, the use of such Aircraft or Airframe in the
normal business of air transportation is prohibited by virtue of a condition affecting
all aircraft of the same type for a period of 18 consecutive months, unless American is
diligently carrying forward all steps that are necessary or desirable to permit the
normal use of such Aircraft or Airframe or, in any event, if such use is prohibited for
a period of three consecutive years; and
•
with respect to an Engine only, any divestiture of title to or interest in such
Engine or, in certain circumstances, the installation of such Engine on an airframe
that is subject to a conditional sale or other security agreement or the requisition
for use of by any government of such Engine not then installed on an Airframe.
An Event of Loss with respect to an Aircraft is deemed to have occurred if an Event of Loss
occurs with respect to the Airframe that is a part of such Aircraft unless American elects to
substitute a replacement Airframe pursuant to the Aircraft Security Agreement. (Aircraft Security
Agreement, Annex A)
If, at any time before the Scheduled Maturity Date, the Allocable Portion of the Notes with
respect to an Aircraft are repaid in full in the case of an Event of Loss with respect to such
Aircraft, the lien on such Aircraft under the Aircraft Security Agreement will be released, and
such Aircraft will not thereafter secure any Notes.
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Governing Law
The Indenture and the Notes are, and, the Aircraft Security Agreement will be, governed by the
laws of the State of New York. (Indenture, Section 13.17; Aircraft Security Agreement, Section
10.15)
The Trustee and Security Agent
U.S. Bank Trust National Association is the Trustee and will be the Security Agent. Except as
otherwise provided in the Indenture and the Aircraft Security Agreement, neither the Trustee nor
the Security Agent, in its individual capacity, is or will be answerable or accountable under the
Indenture, the Aircraft Security Agreement or under the Notes under any circumstances except, among
other things, for its own willful misconduct or negligence. American and its affiliates have in
the past, and may from time to time in the future enter into, banking and trustee relationships
with the Trustee, the Security Agent and their respective affiliates. The address for the Trustee
and the Security Agent is U.S. Bank Trust National Association, One Federal Street, 3rd Floor, Mail
Code EX-FED-MA, Boston, Massachusetts 02110, Attention: Corporate Trust Services.
The Trustee may resign at any time, and may be removed by American under certain
circumstances. In such cases, a successor Trustee will be appointed by American as provided in the
Indenture. The Security Agent may resign at any time, and may be removed by American under certain
circumstances. In such cases, a successor Security Agent will be appointed by American as provided
in the Aircraft Security Agreement. The holders of a majority of the principal amount of the
outstanding Notes may at any time remove the Trustee or cause the Trustee to remove the Security
Agent as provided in the Indenture or the Aircraft Security Agreement, respectively, in which event
a successor Trustee or Security Agent may be appointed by such holders with the consent of American
as provided in the Indenture or the Aircraft Security Agreement, respectively. Any resignation or
removal of the Trustee or the Security Agent and appointment of a successor Trustee or Security
Agent does not become effective until acceptance of the appointment by such successor Trustee or
Security Agent. (Indenture, Section 5.09; Aircraft Security Agreement, Section 8.01)
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DESCRIPTION OF THE AIRCRAFT AND THE APPRAISALS
The Aircraft
On and subject to the terms and conditions of the Indenture, American has agreed to subject
the Aircraft to the lien of the Aircraft Security Agreement following the 1999-1 Maturity Date and
on or prior to the Cut-Off Date. The pool of Aircraft consists of nine Boeing 737-823 aircraft,
one Boeing 767-323ER aircraft and two Boeing 777-223ER aircraft, each of which was delivered new to
American during the period from May 1999 to September 1999. The airframe constituting part of an
Aircraft is referred to herein as an "
Airframe
," and each engine constituting part of an Aircraft
is referred to herein as an "
Engine
." Each Aircraft is being operated by American. The Aircraft
have been designed to comply with Stage 3 noise level standards, which are the most restrictive
regulatory standards currently in effect in the United States with respect to the Aircraft for
aircraft noise abatement. The "ER" designation is provided by the manufacturer and is not
recognized by the FAA.
The Boeing 737-823 is a narrow-body commercial jet aircraft. Seating capacity in American's
two-class configuration for the Boeing 737-823 aircraft to be subjected to the lien of the Aircraft
Security Agreement is 148 seats. The Boeing 737-823 is powered by two CFM56-7B26 model commercial
jet engines manufactured by CFM International, Inc.
The Boeing 767-323ER and the Boeing 777-223ER are both wide-body commercial jet aircraft.
Seating capacity in American's two-class configuration for the Boeing 767-323ER is 225 seats and
American's three-class configuration for the Boeing 777-223ER is 247 seats. The Boeing 767-323ER
is powered by two CF6-80C2B6 model commercial jet engines manufactured by The General Electric
Company. The Boeing 777-223ER is powered by two RB211-TRENT-892 model commercial jet engines
manufactured by Rolls-Royce plc.
The Appraisals
The table below sets forth the appraised values of the Aircraft that are expected to be
financed with the proceeds from the sale of the Old Notes, as determined by Aircraft Information
Services, Inc. ("
AISI
"), BK Associates, Inc. ("
BK
") and Morten Beyer & Agnew, Inc. ("
MBA
," and
together with AISI and BK, the "
Appraisers
"), independent aircraft appraisal and consulting firms,
and certain additional information regarding such Aircraft. The references to AISI, BK and MBA,
and to their respective appraisal reports, are included herein in reliance upon the authority of
each such firm as an expert with respect to the matters contained in its appraisal report.
Registration
Manufacturer's
Appraiser's Valuations
Appraised
Aircraft Type
Number
Serial Number
Delivery Date
AISI
BK
MBA
Value
(1)
Boeing 737-823
N909AN
29511
5/19/1999
$
25,640,000
$
27,600,000
$
26,260,000
$
26,260,000
Boeing 737-823
N910AN
29512
5/26/1999
25,640,000
27,600,000
26,260,000
26,260,000
Boeing 737-823
N912AN
29513
6/25/1999
25,640,000
27,600,000
26,390,000
26,390,000
Boeing 737-823
N914AN
29515
7/19/1999
25,640,000
27,600,000
26,520,000
26,520,000
Boeing 737-823
N915AN
29516
7/28/1999
25,640,000
27,600,000
26,520,000
26,520,000
Boeing 737-823
N916AN
29517
8/6/1999
25,640,000
28,200,000
26,640,000
26,640,000
Boeing 737-823
N917AN
29518
8/27/1999
25,640,000
28,200,000
26,640,000
26,640,000
Boeing 737-823
N918AN
29519
9/10/1999
25,640,000
28,200,000
26,770,000
26,770,000
Boeing 737-823
N919AN
29520
9/15/1999
25,640,000
28,200,000
26,770,000
26,770,000
Boeing 767-323ER
N399AN
29606
5/28/1999
36,570,000
41,800,000
42,080,000
40,150,000
Boeing 777-223ER
N778AN
29587
6/21/1999
73,460,000
76,200,000
69,810,000
73,156,667
Boeing 777-223ER
N779AN
29955
6/27/1999
73,460,000
76,200,000
69,810,000
73,156,667
Total
$
414,250,000
$
445,000,000
$
420,470,000
$
425,233,333
(1)
The appraised value of each Aircraft set forth above is the lesser of the average and median
appraised value of each such Aircraft. Such appraisals indicate current market value of such
Aircraft as appraised by the Appraisers at or around the time of such appraisals.
According to the International Society of Transport Aircraft Trading, appraised "current
market value" is defined as each Appraiser's opinion of the most likely trading price that may be
generated for an aircraft under the market circumstances that are perceived to exist at the time in
question. The current market value assumes that the aircraft is valued for its highest, best use,
that the parties to the sale transaction are willing, able, prudent and knowledgeable, and under no
unusual pressure for a prompt sale, and that the transaction would be negotiated in an
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open and unrestricted market on an arms'-length basis for cash or equivalent consideration,
and given an adequate amount of time for effective exposure to prospective buyers.
In connection with the offering of the Old Notes, each Appraiser was asked to provide, and
each Appraiser furnished, its opinion as to the appraised value of each Aircraft based on appraised
current market value of such Aircraft at or about the time of the appraisal. As part of this
process, all three Appraisers performed "desk-top" appraisals without any physical inspection of
the Aircraft. The appraisals are based on various significant assumptions and methodologies which
vary among the appraisals. The appraisals may not reflect accurately the current market value of
the Aircraft. Appraisals that are based on different assumptions and methodologies (or a physical
inspection of the Aircraft) may result in valuations that are materially different from those
contained in the appraisals. The appraisals have not been updated in connection with this exchange
offer, and the results of the appraisals if conducted immediately prior to the date hereof could
differ from the appraisals delivered in connection with the offering of the Old Notes.
The Appraisers have delivered letters setting forth their respective appraisals in connection
with the offering of the Old Notes, copies of which are annexed to this prospectus as Appendix II.
For a discussion of the assumptions and methodologies used in each of the appraisals, please refer
to such letters.
An appraisal is only an estimate of value. It does not necessarily indicate the price at
which an aircraft may be purchased or sold in the market. In particular, the appraisals of the
Aircraft are estimates of the values of the Aircraft assuming the Aircraft are in a certain
condition, which may not be the case. An appraisal should not be relied upon as a measure of
realizable value. The proceeds realized upon the exercise of remedies with respect to any
Aircraft, including a sale of such Aircraft, may be less than its appraised value. The value of an
Aircraft if remedies are exercised under the Indenture will depend on various factors, including
market, economic and airline industry conditions; the supply of similar aircraft; the availability
of buyers; the condition of such Aircraft; the time period in which such Aircraft is sought to be
sold; and whether such Aircraft is sold separately or as part of a block.
Since the Terrorist Attacks, the airline industry has suffered substantial losses. In
response to adverse market conditions, we and many other U.S. air carriers have reduced the number
of aircraft in operation, and there may be further reductions, particularly by air carriers in
bankruptcy or liquidation. Any such reduction of aircraft of the same models as the Aircraft could
adversely affect the value of the Aircraft.
Accordingly, we cannot assure you that the proceeds realized upon any exercise of remedies
with respect to the Aircraft would be sufficient to satisfy in full payments due on the Notes. See
"Risk Factors — Risk Factors Relating to the Notes and the Exchange Offer — Appraisals should not
be relied upon as a measure of realizable value of the Aircraft."
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EXCHANGE OFFER; REGISTRATION RIGHTS; RATINGS
The following summary describes certain material terms of the Registration Rights Agreement.
The summary does not purport to be complete and is qualified in its entirety by reference to all of
the provisions of the Registration Rights Agreement, a copy of which is filed as an exhibit to the
registration statement of which this prospectus constitutes a part.
American has undertaken the exchange offer pursuant to the terms of the Registration Rights
Agreement. The consummation of the exchange offer is not conditioned upon any minimum or maximum
aggregate principal amount of Old Notes being tendered for exchange. American entered into the
Registration Rights Agreement with the Initial Purchasers concurrently with the issuance of the Old
Notes, pursuant to which American has agreed, for the benefit of and at no cost to the Noteholders,
to use its reasonable best efforts to: (i) file with the SEC a registration statement with respect
to the offer to exchange the Old Notes for the New Notes, which will have terms identical in all
material respects to the Old Notes, to the holders of such Old Notes entitled to make such
exchange, except that the New Notes:
•
are registered under the Securities Act and will not be subject to restrictions on
transfer;
•
will bear a different CUSIP and ISIN number than the Old Notes;
•
will not entitle their holders to registration rights; and
•
will be subject to terms relating to book-entry procedures and administrative terms
relating to transfers that differ from those of the Old Notes,
(ii) cause the registration statement to be declared effective under the Securities Act, (iii)
offer the New Notes in exchange for surrender of the Old Notes and (iv) consummate the exchange
offer on or before December 31, 2009. American will keep the exchange offer open for not less than
20 business days after the date notice of the exchange offer is mailed to the Noteholders. For each
Old Note validly tendered to the Trustee pursuant to the exchange offer and not withdrawn by the
holder thereof, the holder of such Old Note will receive a New Note having a principal amount equal
to that of such tendered Old Note. Interest on each New Note will accrue from the last Payment Date
on which interest was paid on the tendered Old Note in exchange thereof or, if no interest has been
paid on such Old Notes, from the Issuance Date. As part of the terms of the exchange offer, Old
Notes accepted for exchange will not accrue interest for any period from and after the last
interest payment date on which interest was paid or duly provided for on such Old Notes prior to
the Issuance Date of the New Notes or, if no such interest has been paid or duly provided for on
such Old Notes, will not accrue any interest.
Holders of Old Notes who do not tender their Old Notes in the exchange offer will not have any
further registration rights under the Registration Rights Agreement.
Under existing interpretations of the staff of the SEC contained in several no action letters
to third parties, the New Notes will in general be freely transferable by holders thereof (other
than affiliates of American) after the exchange offer without further registration under the
Securities Act (subject to certain representations required to be made by each holder of Old Notes
participating in the exchange offer, as set forth below). However, any purchaser of Old Notes who
is an "affiliate" of American or who intends to participate in the exchange offer for the purpose
of distributing the New Notes (1) will not be able to rely on such SEC interpretations, (2) will
not be able to tender its Old Notes in the exchange offer and (3) must comply with the registration
and prospectus delivery requirements of the Securities Act in connection with any sale or transfer
of Old Notes unless such sale or transfer is made pursuant to an exemption from such requirements.
In addition, in connection with any resales of New Notes, an exchanging dealer receiving New Notes
in the exchange offer will be subject to a prospectus delivery requirement with respect to resales
of those New Notes. The SEC has taken the position that exchanging dealers may fulfill their
prospectus delivery requirements with respect to the New Notes (other than a resale of an unsold
allotment from the original sale of the Old Notes) by delivery of the prospectus contained in the
registration statement of which this prospectus constitutes a part. Under the Registration Rights
Agreement, we are required to allow exchanging dealers to use the
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prospectus contained in the exchange offer registration statement in connection with the
resale of such New Notes for a period of 90 days after the consummation of the exchange offer.
If any changes in law or the applicable interpretations of the staff of the SEC do not permit
American to effect the exchange offer, American will, in lieu of effecting the registration of the
New Notes pursuant to the registration statement and at no cost to the Noteholders, (a) as promptly
as practicable, file with the SEC a shelf registration statement covering resales of the Notes (the
"
Shelf Registration Statement
"), (b) use its reasonable best efforts to cause the Shelf
Registration Statement to be declared effective under the Securities Act on or before December 31,
2009 and (c) use its reasonable best efforts to keep effective the Shelf Registration Statement for
a period of one year after its effective date (or for such shorter period as shall end when all of
the Notes covered by the Shelf Registration Statement have been sold pursuant thereto). American
will, in the event of the filing of a Shelf Registration Statement, provide to each registered
holder of the Notes copies of the prospectus which is a part of the Shelf Registration Statement,
notify each such registered holder when the Shelf Registration Statement for the Notes has become
effective and take certain other actions as are required to permit unrestricted resales of the
Notes. A Noteholder who sells Notes pursuant to the Shelf Registration Statement generally will be
required to be named as a selling securityholder in the related prospectus and to deliver the
prospectus to purchasers, will be subject to certain of the civil liability provisions under the
Securities Act in connection with such sales and will be bound by the provisions of the
Registration Rights Agreement which are applicable to such a Noteholder (including certain
indemnification obligations). In addition, each Noteholder will be required to deliver information
to be used in connection with the Shelf Registration Statement.
In addition, pursuant to the Registration Rights Agreement, American has agreed, for the
benefit of and at no cost to the Noteholders, to use its reasonable best efforts to obtain ratings
for the Notes from each of Moody's and Standard & Poor's on or before December 31, 2009. See "Risk
Factors — Risk Factors Relating to the Notes and the Exchange Offer — The Notes are not currently
rated, and any rating of the Notes, if obtained, may be lowered or withdrawn in the future."
If (a) neither the consummation of the exchange offer nor the declaration by the SEC of a
Shelf Registration Statement to be effective with respect to the Notes occurs on or before December
31, 2009, or (b) the Notes are not rated by Moody's and Standard & Poor's on or before December 31,
2009, then the interest rate per annum borne by the Notes shall be increased permanently by 1.00%
from and including January 1, 2010. If a Shelf Registration Statement, if filed and declared
effective on or before December 31, 2009, ceases to be effective at any time during the one year
period specified by the Registration Rights Agreement for more than 60 days, whether or not
consecutive, the interest rate per annum borne by the Notes shall be increased by 1.00% from the
61st day until such time as the Shelf Registration Statement again becomes effective.
The maximum possible increase in the interest rate per annum borne by the Notes and the
Exchange Notes in connection with the circumstances set forth in the preceding paragraph is 1.00%.
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CERTAIN U.S. FEDERAL INCOME TAX CONSIDERATIONS
The following is a discussion of certain U.S. federal income tax considerations relating to
the exchange of Old Notes for New Notes pursuant to the exchange offer and the ownership and
disposition of New Notes by Holders (as defined below) that receive New Notes pursuant to the
exchange offer and hold such Notes as capital assets. This discussion is based on the U.S.
Internal Revenue Code of 1986, as amended (the "
Code
"), U.S. Treasury regulations promulgated or
proposed thereunder and administrative and judicial interpretations thereof, all as in effect on
the date hereof, and all of which are subject to change, possibly with retroactive effect, or to
different interpretation. This discussion does not address all of the U.S. federal income tax
considerations that may be relevant to specific Holders in light of their particular circumstances
or to Holders subject to special treatment under U.S. federal income tax law (such as banks,
insurance companies, dealers in securities or other persons that generally mark their securities to
market for U.S. federal income tax purposes, tax-exempt entities, retirement plans, regulated
investment companies, real estate investment trusts, certain former citizens or residents of the
United States, persons who hold the Notes as part of a straddle, hedge, conversion or other
integrated transaction or U.S. Holders (as defined below) that have a "functional currency" other
than the U.S. dollar). This discussion does not address any U.S. state or local or non-U.S. tax
considerations or any U.S. federal estate, gift or alternative minimum tax considerations.
As used in this discussion:
•
"
U.S. Holder
" means a beneficial owner of a Note that is, for U.S. federal income
tax purposes, (
i
) an individual who is a citizen or resident of the United States,
(
ii
) a corporation created or organized in or under the laws of the United States, any
state thereof or the District of Columbia, (
iii
) an estate the income of which is
subject to U.S. federal income tax regardless of its source or (
iv
) a trust (
x
) with
respect to which a court within the United States is able to exercise primary
supervision over its administration and one or more United States persons have the
authority to control all of its substantial decisions or (
y
) that has in effect a valid
election under applicable U.S. Treasury regulations to be treated as a United States
person;
•
"
Non-U.S. Holder
" means a beneficial owner of a Note that is neither a U.S. Holder
nor a partnership for U.S. federal income tax purposes; and
•
"
Holder
" means a U.S. Holder or a Non-U.S. Holder.
If an entity treated as a partnership for U.S. federal income tax purposes holds a Note, the
U.S. federal income tax treatment of the entity and its partners generally will depend upon the
status and activities of the entity and its partners. An investor that is treated as a partnership
for U.S. federal income tax purposes should consult its own tax advisor regarding the U.S. federal
income tax considerations relating to the Notes.
HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE U.S. FEDERAL, STATE AND LOCAL, AND
NON-U.S., INCOME, ESTATE AND OTHER TAX CONSIDERATIONS RELATING TO THE EXCHANGE OF OLD NOTES FOR NEW
NOTES PURSUANT TO THE EXCHANGE OFFER AND THE OWNERSHIP AND DISPOSITION OF NEW NOTES IN LIGHT OF
THEIR PARTICULAR CIRCUMSTANCES.
Exchange of Old Notes for New Notes
The exchange of Old Notes for New Notes pursuant to the exchange offer will not be treated as
a taxable event for U.S. federal income tax purposes. New Notes received in the exchange offer will
be treated for U.S. federal income tax purposes as a continuation of the original investment of the
Holder in the Old Notes exchanged therefor. In particular, no gain or loss will be recognized by
Holders as a result of the exchange offer and, for purposes of determining gain or loss on a
subsequent sale of New Notes, a Holder's tax basis and holding period for the New Notes will be the
same as the tax basis and holding period for the Old Notes exchanged therefor. Similarly, there
would be no U.S. federal income tax consequences to a Holder that does not participate in the
exchange offer.
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Certain Additional Payments
The Notes provide for the payment of additional interest by American in certain circumstances
in the event of a failure to meet certain targets regarding registration of the Notes or to obtain
ratings for the Notes, as described above under the heading "Exchange Offer; Registration Rights;
Ratings".
U.S. Treasury regulations provide special rules for contingent payment debt instruments which,
if applicable, could cause the timing, amount and character of a Holder's income, gain or loss with
respect to the Notes to be different from the consequences discussed below. For purposes of
determining whether a debt instrument is a contingent payment debt instrument, remote or incidental
contingencies are ignored. American intends to treat the possibility of its making any such
payment of additional interest on the Notes as remote or to treat such payments as incidental.
Accordingly, American does not intend to treat the Notes as contingent payment debt instruments.
American's treatment will be binding on all Holders, except a Holder that discloses its differing
treatment in a statement attached to its timely filed U.S. federal income tax return for the
taxable year during which the Note was acquired. However, American's treatment is not binding on
the U.S. Internal Revenue Service (the "
IRS
"). If the IRS were to challenge American's treatment,
Holders might be required to accrue interest income on the Notes, in excess of stated interest, and
to treat as interest income, rather than capital gain, any gain recognized on the disposition of
the Notes before the resolution of the contingencies. In any event, if American actually makes any
payment of additional interest described above, the timing and amount (and possibly character) of a
Holder's income, gain or loss with respect to the Notes may be affected. The remainder of this
discussion assumes that the Notes have not been and will not be contingent payment debt
instruments.
U.S. Holders
Interest
In general, interest payable on the Notes will be taxable to a U.S. Holder as ordinary
interest income when it is received or accrued, in accordance with such U.S. Holder's method of
accounting for U.S. federal income tax purposes.
Bond Premium
In general, if a U.S. Holder's tax basis (generally, a U.S. Holder's cost) in a Note exceeded
the sum of all amounts then payable on such Note through the maturity date (other than payments of
stated interest), such U.S. Holder is deemed to have acquired such Note with "bond premium" in the
amount of such excess. In such event, the U.S. Holder generally may elect to amortize the "bond
premium" as an offset to any stated interest over the period from the U.S. Holder's acquisition
date to such Note's maturity date. A U.S. Holder that elects to amortize "bond premium" must reduce
its tax basis in the related Note by the amount of the "bond premium" used to offset interest
income. Any election to amortize "bond premium" applies to all debt instruments (other than debt
instruments the interest on which is excludible from gross income) held by the U.S. Holder during
the first taxable year to which the election applies or thereafter acquired by the U.S. Holder. The
election may not be revoked without the consent of the IRS. It is unclear how these rules apply
when there is more than one possible call date and the amount of any redemption premium is
uncertain. U.S. Holders should consult their own tax advisors regarding the election to amortize
bond premium.
Market Discount
If a U.S. Holder acquired a Note for an amount less than the sum of all amounts payable on
such Note after the acquisition date (other than payments of stated interest), then the difference
constitutes "market discount" for U.S. federal income tax purposes, unless such difference is less
than a statutorily defined
de minimis
amount. Under the "market discount" rules, a U.S. Holder is
generally required to treat as ordinary income any principal payment on, or any gain on the sale,
redemption, retirement or other disposition of, a Note to the extent of any accrued market
discount. In addition, the U.S. Holder may be required to defer, until the maturity of a Note or
its earlier disposition, the deduction of all or a portion of the interest expense on any
indebtedness incurred or continued to purchase or
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carry such Note. Market discount accrues ratably during the period from the date of
acquisition to the maturity of a Note, unless the U.S. Holder elects to accrue it under the
constant yield method.
A U.S. Holder may elect to include market discount in income currently as it accrues (either
ratably or under the constant yield method), in which case the rules described above will not apply
to the Note. The election to include market discount currently applies to all market discount
obligations acquired during or after the first taxable year to which the election applies and may
not be revoked without the consent of the IRS.
Sale, Retirement or Other Taxable Disposition of the Notes
Upon the sale, retirement or other taxable disposition of a Note, a U.S. Holder generally will
recognize gain or loss in an amount equal to the difference between the amount realized on such
sale, retirement or disposition (other than any amount attributable to accrued interest not
previously included in such U.S. Holder's income, which will be taxable as ordinary income to such
U.S. Holder) and such U.S. Holder's adjusted tax basis in such Note. A U.S. Holder's adjusted tax
basis in a Note generally will be its cost for such Note, increased by any market discount
previously included in income by such U.S. Holder and reduced by any prior cash payments (other
than payments of stated interest) on such Note made to such U.S. Holder and by any bond premium
that has been used to offset interest income. Subject to the "market discount" rules described
above, any gain or loss so recognized generally will be capital gain or loss and will be long-term
capital gain or loss if such U.S. Holder has held the Note for more than one year at the time of
such sale, retirement or disposition. Net long-term capital gain of certain non-corporate U.S.
Holders is generally subject to preferential rates of tax. The deductibility of capital losses is
subject to limitations.
Information Reporting and Backup Withholding
Information reporting generally will apply to a U.S. Holder with respect to payments of
interest on, or proceeds from the sale, retirement or other disposition of, a Note, unless such
U.S. Holder is a corporation or other entity that is exempt from information reporting and, when
required, demonstrates this fact. Any such payments or proceeds to a U.S. Holder that are subject
to information reporting generally will also be subject to backup withholding, unless such U.S.
Holder provides the appropriate documentation (generally, IRS Form W-9) to the applicable
withholding agent certifying that, among other things, its taxpayer identification number is
correct and it is a United States person, or otherwise establishes an exemption.
Backup withholding is not an additional tax. Any amounts withheld under the backup
withholding rules generally will be allowed as a refund or a credit against a U.S. Holder's U.S.
federal income tax liability,
provided
that the required information is furnished by the U.S.
Holder on a timely basis to the IRS.
Non-U.S. Holders
Subject to the discussion below concerning backup withholding:
(
a
) payments of principal, interest and premium with respect to a Note owned by a
Non-U.S. Holder generally will not be subject to U.S. federal withholding tax;
provided
that, in the case of payments treated as interest, (
i
) such payments are not effectively
connected with the conduct of a trade or business in the United States by such Non-U.S.
Holder; (
ii
) such Non-U.S. Holder does not own, actually or constructively, 10% or more of
the total combined voting power of all classes of our stock entitled to vote; (
iii
) such
Non-U.S. Holder is not a controlled foreign corporation described in section 957(a) of the
Code that is related to us through stock ownership; (
iv
) such Non-U.S. Holder is not a bank
whose receipt of interest on the Note is described in section 881(c)(3)(A) of the Code; and
(
v
) the certification requirements described below are satisfied; and
(
b
) a Non-U.S. Holder generally will not be subject to U.S. federal income or
withholding tax on any gain realized on the sale, retirement or other disposition of a Note
(other than amounts treated as interest), unless (
i
) such gain is effectively connected with
the conduct of a trade or business in the United States by such Non-U.S. Holder or (
ii
) such
Non-U.S. Holder is an individual who is present in the United
64
Table of Contents
States for 183 days or more in the taxable year of such sale, retirement or disposition
and certain other conditions are met (in each case, subject to the provisions of an
applicable tax treaty).
The certification requirements referred to in clause (
a
)(
v
) above generally will be satisfied
if the Non-U.S. Holder provides the applicable withholding agent with a statement on IRS Form
W-8BEN (or suitable substitute form), signed under penalties of perjury, stating, among other
things, that such Non-U.S. Holder is not a United States person. U.S. Treasury regulations provide
additional rules for a Note held through one or more intermediaries or pass-through entities.
President Obama has recently proposed changes to these certification requirements.
If the requirements set forth in clause (
a
) above are not satisfied with respect to a Non-U.S.
Holder, payments on the Notes treated as interest generally will be subject to U.S. federal
withholding tax at a rate of 30%, unless another exemption is applicable. For example, an
applicable tax treaty may reduce or eliminate such withholding tax,
provided
that such Non-U.S.
Holder has provided the appropriate documentation (generally, IRS Form W-8BEN) to the applicable
withholding agent.
If a Non-U.S. Holder is engaged in the conduct of a trade or business in the United States,
and if amounts treated as interest on the Notes or as gain realized on the sale, retirement or
other disposition of the Notes are effectively connected with such trade or business, such Non-U.S.
Holder generally will not be subject to U.S. federal withholding tax on such amounts,
provided
that, in the case of amounts treated as interest, such Non-U.S. Holder has provided the appropriate
documentation (generally, IRS Form W-8ECI) to the applicable withholding agent. Instead, such
Non-U.S. Holder generally will be subject to U.S. federal income tax in substantially the same
manner as a U.S. Holder (except as provided by an applicable tax treaty). In addition, a Non-U.S.
Holder that is a corporation may be subject to a branch profits tax equal to 30% of its effectively
connected income for the taxable year, subject to certain adjustments (or a lower rate if provided
by an applicable tax treaty).
Information Reporting and Backup Withholding
Generally, payments of amounts treated as interest on a Note to a Non-U.S. Holder, and the
amount of any tax withheld from such payments, must be reported annually to the IRS and to such
Non-U.S. Holder. The IRS may make this information available to the tax authorities of the country
in which such Non-U.S. Holder is a resident under the provisions of an applicable tax treaty or
agreement.
The information reporting and backup withholding rules that apply to payments of interest to a
U.S. Holder generally will not apply to payments of interest on a Note to a Non-U.S. Holder if such
Non-U.S. Holder certifies under penalties of perjury that it is not a United States person
(generally by providing an IRS Form W-8BEN) or otherwise establishes an exemption.
Proceeds from the sale, retirement or other disposition of a Note by a Non-U.S. Holder
effected through a non-U.S. office of a U.S. broker or of a non-U.S. broker with certain specified
U.S. connections generally will be subject to information reporting, but not backup withholding,
unless such Non-U.S. Holder certifies under penalties of perjury that it is not a United States
person (generally by providing an IRS Form W-8BEN) or otherwise establishes an exemption. Proceeds
from the sale, retirement or other disposition of a Note by a Non-U.S. Holder effected through a
U.S. office of a broker generally will be subject to information reporting and backup withholding,
unless such Non-U.S. Holder certifies under penalties of perjury that it is not a United States
person (generally by providing an IRS Form W-8BEN) or otherwise establishes an exemption.
Backup withholding is not an additional tax. Any amounts withheld under the backup
withholding rules generally will be allowed as a refund or a credit against a Non-U.S. Holder's
U.S. federal income tax liability,
provided
that the required information is furnished by such
Non-U.S. Holder on a timely basis to the IRS.
65
Table of Contents
CERTAIN ERISA CONSIDERATIONS
General
The Employee Retirement Income Security Act of 1974, as amended ("
ERISA
"), imposes certain
requirements on employee benefit plans subject to Title I of ERISA and on entities that are deemed
to hold the assets of such plans ("
ERISA Plans
"), and on those persons who are fiduciaries with
respect to ERISA Plans. Investments by ERISA Plans are subject to ERISA's general fiduciary
requirements, including, but not limited to, the requirement of investment prudence and
diversification and the requirement that an ERISA Plan's investments be made in accordance with the
documents governing the Plan.
Section 406 of ERISA and Section 4975 of the Code, prohibit certain transactions involving the
assets of an ERISA Plan (as well as those plans that are not subject to ERISA but which are subject
to Section 4975 of the Code, such as individual retirement accounts, or entities that are deemed to
hold the assets of such plans or accounts (together with ERISA Plans, "
Plans
")) and certain persons
(referred to as "
parties in interest
" or "
disqualified persons
") having certain relationships to
such Plans, unless a statutory or administrative exemption is applicable to the transaction. A
party in interest or disqualified person who engages in a prohibited transaction may be subject to
excise taxes and other penalties and liabilities under ERISA and the Code.
Any Plan fiduciary which proposes to cause a Plan to exchange the Old Notes for New Notes
should consult with its counsel regarding the applicability of the fiduciary responsibility and
prohibited transaction provisions of ERISA and Section 4975 of the Code to such an investment, and
to confirm that such exchange and holding will not constitute or result in a non-exempt prohibited
transaction or any other violation of an applicable requirement of ERISA.
Foreign plans, governmental plans and certain church plans, while not subject to the fiduciary
responsibility provisions of ERISA or the prohibited transaction provisions of ERISA and Section
4975 of the Code, may nevertheless be subject to U.S. federal, state, local, or foreign law or
regulation that is substantially similar to the foregoing provisions of ERISA and the Code
("
Similar Law
"). Fiduciaries of any such plans should consult with their counsel before exchanging
Old Notes for New Notes to determine the need for, and the availability, if necessary, of any
exemptive relief under any such laws or regulations.
Prohibited Transaction Exemptions
The fiduciary of a Plan that proposes to exchange Old Notes for New Notes should consider,
among other things, whether such exchange and holding may involve (
i
) the direct or indirect
extension of credit to a party in interest or a disqualified person, (
ii
) the sale or exchange of
any property between a Plan and a party in interest or a disqualified person, or (
iii
) the transfer
to, or use by or for the benefit of, a party in interest or a disqualified person, of any Plan
assets. Such parties in interest or disqualified persons could include, without limitation,
American, the Trustee, the Security Agent and their respective affiliates. Depending on the
satisfaction of certain conditions which may include the identity of the Plan fiduciary making the
decision to exchange Old Notes for New Notes on behalf of a Plan, Prohibited Transaction Class
Exemption ("
PTCE
") 91-38 (relating to investments by bank collective investment funds), PTCE 84-14
(relating to transactions effected by a "qualified professional asset manager"), PTCE 95-60
(relating to investments by an insurance company general account), PTCE 96-23 (relating to
transactions directed by an in-house asset manager) or PTCE 90-1 (relating to investments by
insurance company pooled separate accounts) (collectively, the "
Class Exemptions
") could provide an
exemption from the prohibited transaction provisions of ERISA and Section 4975 of the Code.
However, there can be no assurance that any of these Class Exemptions or any other exemption will
be available with respect to any particular transaction involving the Notes.
Each person who acquires or accepts a Note or an interest therein will be deemed by such
acquisition or acceptance to have represented and warranted that either: (
i
) no assets of (
a
) an
employee benefit plan subject to Title I of ERISA, (
b
) a plan described in Section 4975(e)(1) of
the Code, (
c
) an entity whose underlying assets are deemed to include assets of any such employee
benefit plan or plan, or (
d
) a foreign, governmental or church plan that is subject to Similar Law
have been used to purchase such Note or any interest therein; or (
ii
) the purchase and holding of
such Note or any interest therein by such person are
66
Table of Contents
exempt from the prohibited transaction restrictions of ERISA and the Code or any similar
provision of Similar Law, as applicable, pursuant to one or more prohibited transaction statutory
or administrative exemptions.
Special Considerations Applicable to Insurance Company General Accounts
Any insurance company proposing to invest assets of its general account in the Notes should
consider the implications of the United States Supreme Court's decision in
John Hancock Mutual Life
Insurance Co. v. Harris Trust and Savings Bank
, 510 U.S. 86, 114 S. Ct. 517 (1993), which in
certain circumstances treats such general account assets as assets of a Plan that owns a policy or
other contract with such insurance company, as well as the effect of Section 401(c) of ERISA as
interpreted by regulations issued by the United States Department of Labor in January, 2000.
EACH PLAN FIDUCIARY (AND EACH FIDUCIARY FOR A FOREIGN, GOVERNMENTAL OR CHURCH PLAN SUBJECT TO
SIMILAR LAW) SHOULD CONSULT WITH ITS LEGAL ADVISOR CONCERNING THE POTENTIAL CONSEQUENCES TO THE
PLAN UNDER ERISA, THE CODE OR SUCH SIMILAR LAW OF AN INVESTMENT IN THE NOTES.
67
Table of Contents
PLAN OF DISTRIBUTION
Each broker-dealer that receives New Notes for its own account pursuant to the exchange offer
must acknowledge that it will deliver a prospectus in connection with any resale of such New Notes.
This prospectus, as it may be amended or supplemented from time to time, may be used by a
broker-dealer in connection with resales of New Notes received in exchange for Old Notes where such
Old Notes were acquired as a result of market-making activities or other trading activities. We
have agreed that, for a period of 90 days after the Expiration Date, we will make this prospectus,
as amended or supplemented, available to any broker-dealer for use in connection with any such
resale.
We will not receive any proceeds from any sale of New Notes by broker-dealers. New Notes
received by broker-dealers for their own account pursuant to the exchange offer may be sold from
time to time in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the New Notes or a combination of such methods of
resale, at market prices prevailing at the time of resale, at prices related to such prevailing
market prices or at negotiated prices. Any such resale may be made directly to purchasers or to or
through brokers or dealers who may receive compensation in the form of commissions or concessions
from any such broker-dealer or the purchasers of any such New Notes. Any broker-dealer that resells
New Notes that were received by it for its own account pursuant to the exchange offer and any
broker or dealer that participates in a distribution of such New Notes may be deemed to be an
"underwriter" within the meaning of the Securities Act and any profit on any such resale of New
Notes and any commission or concessions received by any such persons may be deemed to be
underwriting compensation under the Securities Act. The letter of transmittal states that, by
acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be
deemed to admit that it is an "underwriter" within the meaning of the Securities Act.
For a period of 90 days after the Expiration Date, we will promptly send additional copies of
this prospectus and any amendment or supplement to this prospectus to any broker-dealer that
requests such documents in the letter of transmittal. We have agreed to pay all expenses incident
to the exchange offer other than commissions or concessions of any broker-dealers and will
indemnify certain Noteholders (including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act.
Based on interpretations by the staff of the SEC as set forth in no-action letters issued to
third parties (including Exxon Capital Holdings Corporation (available May 13, 1988), Morgan
Stanley & Co. Incorporated (available June 5, 1991), K-111 Communications Corporation (available
May 14, 1993) and Shearman & Sterling (available July 2, 1993)), we believe that the New Notes
issued pursuant to the exchange offer may be offered for resale, resold and otherwise transferred
by any holder of such New Notes, other than any such holder that is a broker-dealer or an
"affiliate" of us within the meaning of Rule 405 under the Securities Act, without compliance with
the registration and prospectus delivery provisions of the Securities Act, provided that:
•
such New Notes are acquired in the ordinary course of business;
•
at the time of the commencement of the exchange offer, such holder has no
arrangement or understanding with any person to participate in a distribution of such
New Notes; and
•
such holder is not engaged in and does not intend to engage in a distribution of
such New Notes.
We have not sought and do not intend to seek a no-action letter from the SEC with respect to
the effects of the exchange offer, and there can be no assurance that the staff of the SEC would
make a similar determination with respect to the New Notes as it has in such no-action letters.
68
Table of Contents
VALIDITY OF THE NEW NOTES
The validity of the New Notes is being passed upon for American by Gary F. Kennedy, Esq.,
Senior Vice President, General Counsel and Chief Compliance Officer of American.
EXPERTS
The consolidated financial statements of AMR appearing in AMR's Current Report (Form 8-K)
dated April 21, 2009 (including schedule appearing therein), the consolidated financial statements
of American appearing in American's Annual Report (Form 10-K) for the year ended December 31, 2008
(including schedule appearing therein) have been audited by Ernst & Young LLP, independent
registered public accounting firm, as set forth in their reports thereon, included therein, and
incorporated herein by reference. Such consolidated financial statements are incorporated herein
in reliance upon such reports given on the authority of such firm as experts in accounting and
auditing.
The references to Aircraft Information Services, Inc., BK Associates, Inc. and Morten Beyer &
Agnew, Inc., and to their respective appraisal reports, are included herein in reliance upon the
authority of each such firm as an expert with respect to the matters contained in its appraisal
report.
WHERE YOU CAN FIND MORE INFORMATION
We and our parent company, AMR, file annual, quarterly and current reports, proxy statements
(in the case of AMR only) and other information with the SEC. You may read and copy this
information at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You
may obtain information on the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. Our SEC filings are also available from the SEC's Internet site at
http://www.sec.gov
, which contains reports, proxy and information statements, and other information
regarding issuers that file electronically.
This prospectus is part of a registration statement that we have filed with the SEC. This
prospectus does not contain all of the information we have included in the registration statement
and the accompanying exhibits and schedules in accordance with the rules and regulations of the
SEC, and we refer you to the omitted information. The statements this prospectus makes pertaining
to the content of any contract, agreement or other document that is an exhibit to the registration
statement necessarily are summaries of their material provisions and do not describe all exceptions
and qualifications contained in those contracts, agreements or documents. You should read those
contracts, agreements or documents for information that may be important to you. The registration
statement, exhibits and schedules are available at the SEC's Public Reference Room or through its
Internet site.
We "incorporate by reference" in this prospectus certain documents that we or AMR files with
the SEC, which means:
•
we can disclose important information to you by referring you to those documents;
and
•
information incorporated by reference is considered to be part of this prospectus,
even though it is not repeated in this prospectus.
The following documents listed below that we and AMR have previously filed with the SEC
(Commission File Numbers 001-02691 and 001-08400, respectively) are incorporated by reference
(other than reports or portions thereof furnished under Items 2.02 or 7.01 of Form 8-K):
Filing
Date Filed
Annual Reports on Form 10-K of American and
AMR for the year ended December 31, 2008
February 19, 2009 (except,
in the case of AMR, for
Items 1, 1A, 6, 7, 7A and
8 and Exhibit 12 thereto,
which have been updated in
AMR's Current Report on
Form 8-K filed on April
21, 2009)
69
Table of Contents
Filing
Date Filed
Quarterly Reports on Form 10-Q of American
and AMR for the quarters ended March 31, 2009
and
June 30, 2009
April 16, 2009
July 15, 2009
Current Reports on Form 8-K of American
January 6, 2009
January 15, 2009
February 3, 2009
February 5, 2009
February 18, 2009
March 4, 2009
March 18, 2009
April 3, 2009
May 5, 2009
June 4, 2009
June 11, 2009
June 18, 2009
June 25, 2009
June 26, 2009
June 29, 2009
July 6, 2009
July 7, 2009
August 3, 2009
August 5, 2009
Current Reports on Form 8-K of AMR
January 6, 2009
January 15, 2009
January 23, 2009
February 3, 2009
February 5, 2009
February 18, 2009
March 4, 2009
March 18, 2009
April 3, 2009
April 21, 2009
May 5, 2009
June 4, 2009
June 11, 2009
June 18, 2009
June 25, 2009
June 26, 2009
July 6, 2009
July 7, 2009
August 3, 2009
August 5, 2009
You can obtain any of the filings incorporated by reference in this prospectus through us or
from the SEC through the SEC's Internet site or at the address listed above. You may request
orally or in writing, without charge, a copy of any or all of the documents which are incorporated
in this prospectus by reference, other than exhibits to such documents (unless such exhibits are
specifically incorporated by reference into such documents). Requests for such copies should be
directed to American Airlines, Inc., 4333 Amon Carter Boulevard, Mail Drop 5651, Fort Worth, Texas
76155, Attention: Investor Relations (Telephone: (817) 967-2970).
70
Table of Contents
APPENDIX I
INDEX OF TERMS
The following is an index showing the page in this prospectus where certain defined terms
appear.
1999-1 EETC
1
1999-1 Event of Loss
2
1999-1 Indentures
1
1999-1 Maturity Date
1
Agent's Message
29
Aircraft
4
Aircraft Security Agreement
1
Aircraft Security Event of Default
41
Airframe
58
AISI
58
Allocable Portion
36
American
1
American Bankruptcy Event
41
American Beacon Advisors
19
AmericanConnection
®
carrier
1
AMR
1
Appraisal
44
Appraisers
58
Assumed Aircraft Value
40
ATC
20
ATOP
9
Average Life Date
39
Bankruptcy Code
12
BK
58
Book-Entry Confirmation
29
Business Day
37
Cape Town Treaty
53
Cash Collateral
1
citizen of the United States
47
Class Exemptions
66
Clearstream
30
Code
62
Company
1
Credit Facility
17
Cut-Off Date
1
Cut-Off Redemption Date
2
Default
42
Depreciation Assumption
40
DTC
9
EBITDAR Covenant
17
Eligible Institution
29
Engine
58
Equipment
44
ERISA
66
ERISA Plans
66
EU
20
Euroclear
30
Event of Default
41
Event of Loss
56
Exchange Act
ii
Exchange Agent
9
Expiration Date
8
FAA
52
Global Notes
48
H.15(519)
39
Holder
62
Indenture
1, 36
Initial Purchasers
7
Appendix I-1
Table of Contents
IRS
63
Issuance Date
7, 36
Liquidity Covenant
17
Loan Amount
54
LTVs
5
Make-Whole Amount
38
Make-Whole Spread
39
MBA
58
Moody's
26
Mortgage Convention
53
MSP
29
New Notes
7
Non-U.S. Holder
62
Noteholders
1
Notes
7
Old Notes
7, 36
Operative Documents
36
Payment Date
36
Payment Default
41
Plans
66
PTCE
66
Rating Agencies
26
Rating Condition
8
Registration Condition
8
Registration Rights Agreement
8
Remaining Weighted Average Life
39
SARS
21
Scheduled Maturity Date
36
SEC
iii
Section 1110
12
Securities Act
ii
Security Agent
1
SEMP
29
Shelf Registration Statement
61
Similar Law
66
STAMP
29
Standard & Poor's
26
Stated Interest Rate
37
Terrorist Attacks
15
Transportation Code
47
Appendix I-2
Table of Contents
Treasury Yield
39
Trust Indenture Act
8
Trustee
1, 36
U.S. Holder
62
Appendix I-3
Table of Contents
APPENDIX II
APPRAISAL LETTERS
Appendix II-1
Table of Contents
Mr. Ken Menezes
Principal, Corporate Finance
American Airlines, Inc.
4333 Amon Carter Blvd.
Fort Worth, TX 76155-2605
Sight Unseen Half Life Current Market Value Opinion
12 Aircraft Portfolio
AISI
File No.: A9S031VO-2
Date: 27 July 2009
Table of Contents
Mr. Ken Menezes
Principal, Corporate Finance
American Airlines, Inc.
4333 Amon Carter Blvd.
Fort Worth, TX 76155-2605
Subject:
Sight Unseen Half Life Current Market Value Opinion,
12 Aircraft Portfolio
AISI File number: A9S031BVO-2
Ref:
(a) Email messages 10 June, 07 July, 24 July 2009
Dear Mr. Menezes:
Aircraft Information Services, Inc. (AISI) has been requested to offer our opinion of the sight
unseen June 2009 half life current market value for 12 used aircraft (the "Aircraft") as identified
and defined in Table I and reference (a) above (the 'Aircraft'). The Aircraft are valued in June
2009 US dollars.
1.
Methodology and Definitions
The standard terms of reference for commercial aircraft value are 'base value' and 'current market
value' of an 'average' aircraft. Base value is a theoretical value that assumes a hypothetical
balanced market while current market value is the value in the real market; both assume a
hypothetical average aircraft condition. All other values are derived from these values. AISI
value definitions are consistent with the current definitions of the International Society of
Transport Aircraft Trading (ISTAT), those of 01 January 1994. AISI is a member of that
organization and employs an ISTAT Certified and Senior Certified Appraiser.
AISI defines a 'base value' as that of a transaction between an equally willing and informed buyer
and seller, neither under compulsion to buy or sell, for a single unit cash transaction with no
hidden value or liability, with supply and demand of the sale item roughly in balance and with no
event which would cause a short term change in the market. Base values are typically given for
aircraft in 'new' condition, 'average half-life' condition, or 'adjusted' for an aircraft in a
specifically described condition at a specific time.
Headquarters,
26072 Merit Circle, Suite 123, Laguna Hills, CA 92653
TEL: 949-582-8888 FAX: 949-582-8887 EMAIL: mail@AISI.aero
Table of Contents
27 July 2009
AISI File No. A9S031BV0-2
Page - 2 -
An 'average' aircraft is an operable airworthy aircraft in average physical condition and with
average accumulated flight hours and cycles, with clear title and standard unrestricted certificate
of airworthiness, and registered in an authority which does not represent a penalty to aircraft
value or liquidity, with no damage history and with inventory configuration and level of
modification which is normal for its intended use and age. Note that a stored aircraft is not an
'average' aircraft. AISI assumes average condition unless otherwise specified in this report.
AISI also assumes that airframe, engine and component parts are from the original equipment
manufacturer (OEM) and that maintenance, maintenance program and essential records are sufficient
to permit normal commercial operation under a strict airworthiness authority.
'Half-life' condition assumes that every component or maintenance service which has a prescribed
interval that determines its service life, overhaul interval or interval between maintenance
services, is at a condition which is one-half of the total interval.
'Full-life' condition assumes zero time since overhaul of airframe, gear, apu, engine overhaul and
engine LLPs.
An 'adjusted' appraisal reflects an adjustment from half life condition for the actual condition,
utilization, life remaining or time remaining of an airframe, engine or component.
It should be noted that AISI and ISTAT value definitions apply to a transaction involving a single
aircraft, and that transactions involving more than one aircraft are often executed at considerable
and highly variable discounts to a single aircraft price, for a variety of reasons relating to an
individual buyer or seller.
AISI defines a 'current market value', which is synonymous with the older term 'fair market value'
as that value which reflects the real market conditions including short term events, whether at,
above or below the base value conditions. Assumptions of a single unit sale and definitions of
aircraft condition, buyer/seller qualifications and type of transaction remain unchanged from that
of base value. Current market value takes into consideration the status of the economy in which
the aircraft is used, the status of supply and demand for the particular aircraft type, the value
of recent transactions and the opinions of informed buyers and sellers. Note that for a current
market value to exist, the seller may not be under duress. Current market value assumes that there
is no short term time constraint to buy or sell.
AISI defines a 'distressed market value' as that value which reflects the real market condition
including short term events, when the market for the subject aircraft is so depressed that the
seller is under duress. Distressed market value assumes that there is a time constraint to sell
within a period of less than 1 year. All other assumptions remain unchanged from that of 'current
market value'.
Table of Contents
27 July 2009
AISI File No. A9S031BV0-2
Page - 3 -
None of the AISI value definitions take into account remarketing costs, brokerage costs, storage
costs, recertification costs or removal costs.
AISI encourages the use of base values to consider historical trends, to establish a consistent
baseline for long term value comparisons and future value considerations, or to consider how actual
market values vary from theoretical base values. Base values are less volatile than current market
values and tend to diminish regularly with time. Base values are normally inappropriate to
determine near term values. AISI encourages the use of current market values to consider the
probable near term value of an aircraft when the seller is not under duress. AISI encourages the
use of distressed market values to consider the probable near term value of an aircraft when the
seller is under duress.
No physical inspection of the Aircraft or their essential records was made by AISI for the purposes
of this report, nor has any attempt been made to verify information provided to us, which is
assumed to be correct and applicable to the Aircraft.
If more than one aircraft is contained in this report than it should be noted that the values given
are not directly additive, that is, the total of the given values is not the value of the fleet but
rather the sum of the values of the individual aircraft if sold individually over time so as not to
exceed demand.
2.
Valuation
It is our considered opinion that the sight unseen half life current market values of the Aircraft
at 30 June 2009 are as follows in Table I subject to the assumptions, definitions, and disclaimers
herein.
The Aircraft are valued in June 2009 million US dollars.
Table of Contents
27 July 2009
AISI File No. A9S031BV0-2
Page - 4 -
TABLE 1
A9S031BVO-2
Report Dated 27 July 2009
Values as of 30 June 2009
Half Life
Current
Market
Jun-09
Million US
No
Type
MSN
DOM
Engine
MTOW
Dollars
1
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29511
May-99
CFM56-7B26
174,200
25.64
2
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29512
May-99
CFM56-7B26
174,200
25.64
3
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29513
Jun-99
CFM56-7B26
174,200
25.64
4
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29515
Jul-99
CFM56-7B26
174,200
25.64
5
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29516
Jul-99
CFM56-7B26
174,200
25.64
6
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29517
Aug-99
CFM56-7B26
174,200
25.64
7
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29518
Aug-99
CFM56-7B26
174,200
25.64
8
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29519
Sep-99
CFM56-7B26
174,200
25.64
9
B737-823 (winglet, 3rd VHF, 2 HF, overwater equipped)
29520
Sep-99
CFM56-7B26
174,200
25.64
10
B767-323ER (long range overwater ETOP)
29606
May-99
CF6-80C2B6
408,000
36.57
11
B777-223ER (long range overwater ETOP)
29587
Jun-99
Trent 892
648,000
73.46
12
B777-223ER (long range overwater ETOP)
29955
Jun-99
Trent 892
648,000
73.46
Totals
414.25
Table of Contents
27 July 2009
AISI File No. A9S031BV0-2
Page - 5 -
Unless otherwise agreed by Aircraft Information Services, Inc. (AISI) in writing, this report shall
be for the sole use of the client/addressee. This report is offered as a fair and unbiased
assessment of the subject aircraft. AISI has no past, present, or anticipated future interest in
any of the subject aircraft. The conclusions and opinions expressed in this report are based on
published information, information provided by others, reasonable interpretations and calculations
thereof and are given in good faith. AISI certifies that this report has been independently
prepared and it reflects AISI's conclusions and opinions which are judgments that reflect
conditions and values current at the time of this report. The values and conditions reported upon
are subject to any subsequent change. AISI shall not be liable to any party for damages arising
out of reliance or alleged reliance on this report, or for any party's action or failure to act as
a result of reliance or alleged reliance on this report.
Sincerely,
AIRCRAFT INFORMATION SERVICES, INC.
Fred Bearden
CEO
Table of Contents
1295 Northern Boulevard
Manhasset, New York 11030
(516) 365-6272 · Fax (516) 365-6287
July 27, 2009
Mr. Ken Menezes, Principal
Corporate Finance
American Airlines, Inc.
4333 Amon Carter Blvd., MD 5662
Fort Worth, TX 76155-2605
Dear Mr. Menezes:
In response to your request, BK Associates, Inc. is pleased to provide our opinion regarding the
half-time Current Market Value (CMV) for 12 Boeing aircraft in the American Airlines Fleet. The
aircraft, which consist of B737-823W, B767-323ER or B777-223ER models, are further identified in
the attached Figure 1 by registration, serial number, engine model, date of manufacture and maximum
takeoff weight. Our opinion of the values is included in Figure 1.
DEFINITIONS
According to the International Society of Transport Aircraft Trading's (ISTAT) definition of Fair
Market Value, to which BK Associates subscribes, the quoted fair market value is the Appraiser's
opinion of the most likely trading price that may be generated for an aircraft under the market
circumstances that are perceived to exist at the time in question. The fair market value assumes
that the aircraft is valued for its highest, best use, that the parties to the hypothetical sale
transaction are willing, able, prudent and knowledgeable, and under no unusual pressure for a
prompt sale, and that the transaction would be negotiated in an open and unrestricted market on an
arm's length basis, for cash or equivalent consideration, and given an adequate amount of time for
effective exposure to prospective buyers, which BK Associates considers to be 12 to 18 months. The
market value normally refers to a transaction involving a single aircraft. When multiple aircraft
are acquired in the same transaction, the trading price of each unit may be discounted.
Base Value, is the Appraiser's opinion of the underlying economic value of an aircraft in an open,
unrestricted, stable market environment with a reasonable balance of supply and demand, and assumes
full consideration of its "highest and best use". An aircraft's base value is founded in the
historical trend of values and in the projection of future value trends and presumes an arm's
length, cash transaction between willing, able and knowledgeable parties, acting prudently, with an
absence of duress and with a reasonable period of time available for marketing.
Table of Contents
July 27, 2009
Page 2
MARKET DISCUSSION & METHODOLOGY
Current values are normally based on comparison to recent sales of comparable aircraft.
Unfortunately, there have been few recent transactions involving comparable aircraft for which the
price was divulged. In recent years the major airlines and other aviation industry entities in the
United States have claimed, with support of the government and the courts that the realizations in
their aircraft sales should be kept confidential.
There have been no publicly reported sales of comparable aircraft that would indicate its current
value. Some prices are divulged informally in private conversations, and of course, appraisers are
often privy to transaction prices from appraisals they have conducted. These cannot be divulged in
our reports.
From these sources we are aware of several transactions in the past year of some B777 and B737-800
aircraft. These are not directly comparable because they are older or younger aircraft than those
being appraised. However, they do serve to confirm the comparable values in our database and
confirm our methodology.
In the absence of recent comparable sales, an appropriate methodology is to determine the base
value that would apply in a balanced market and then assess the current market conditions to
determine the market value.
As the definition implies, the base value is determined from long-term historical trends. BK
Associates has accumulated a database of over 10,000 data points of aircraft sales that occurred
since 1970. From analysis of these data we know, for example, what the average aircraft should
sell for as a percentage of its new price, as well as, the high and low values that have occurred
in strong and weak markets.
Based on these data, we have developed relationships between aircraft age and sale price for
wide-bodies, narrow-bodies, large turboprops and, more recently, regional jet and freighter
aircraft. Within these groups we have developed further refinements for such things as derivative
aircraft, aircraft still in production versus no longer in production, and aircraft early in the
production run versus later models. Within each group variations are determined by the performance
capabilities of each aircraft relative to the others. We now track some 150 different variations
of aircraft types and models and determine current and forecast base values. These relationships
are verified, and changed or updated if necessary, when actual sales data becomes available.
Table of Contents
July 27, 2009
Page 3
This relationship between sales price as a function of age and the original price is depicted in
the following figure.
All of the Aircraft are 10 to 11 years old. The data suggest that a 10 to 11-year old aircraft
should sell for 42 to 46 percent of its original price. So, for the B737-800s for example, the
original price was likely about $41 to $42 million. The data suggest that on average today after
allowing for inflation it should sell for about $24.45 million. By a similar analysis the
suggested average selling price today for the B767 would be $47.5 to $51.7 million and it would be
$70 to $73 million for the B777s. However, recent experience has shown that after a long
production run, even popular and successful aircraft tend to approach or fall below the "average"
line in the figure, especially when the specific aircraft is in the latter half of its likely
useful life. By contrast, new, popular and successful models tend to have values above the line
for the first 10 years or so.
Table of Contents
July 27, 2009
Page 4
There is no doubt that all of these models have been quite successful. The B737-800 is arguably
the most successful aircraft ever. There are about 2,800 in service or on order, which is
surpassed only by the A320 with 3,800. However, the A320 has been in production for nearly 10
years longer and the B737-800 may well pass it some day. We conclude the B737-800 values are about
10 percent above the values suggested by the historical comparison.
Similarly, the B777 has been popular and successful. It has become the workhorse of the long-haul
fleet. There are over 650 of all models in service with about 260 more on order. There are 407
ERs in service with 43 operators. We concluded it also has values some five percent higher than
that suggested by the average historical data.
For the B767s, while they have been very successful, they were in production some 10 years before
the other models. Production has essentially ceased although some new recent orders were placed to
fill the gap created by delays of the B787. As noted above, experience has shown that in these
circumstances the values tend to fall below the "average" line in the figure and we conclude the
current base values are about eight percent below.
Regarding the current market values, we consider the current demand is still relatively strong for
the B737-800s and the B777 and conclude the market for them is in balance and the CMV equals the
BV. There are only five B737-800s listed as being for sale or lease but all are for lease only.
Similarly, there are only five B777-200ERs listed.
For the B767-300ER, 14 are listed as being on the market. They represent 2.8 percent of the fleet.
Experience has shown that downward pressure begins on values when more than one percent of the
fleet is idle. We conclude the CMVs of the B767-300ER is about 10 percent below the base value.
ASSUMPTIONS & DISCLAIMER
It should be understood that BK Associates has neither inspected the Aircraft nor the maintenance
records, but has relied upon the information provided by you and in the BK Associates database.
The assumptions have been made that all Airworthiness Directives have been complied with; accident
damage has not been incurred that would affect market values; the Aircraft are at half-time between
major maintenance events; and maintenance has been accomplished in accordance with a civil
airworthiness authority's approved maintenance program and accepted industry standards. Further,
we have assumed unless otherwise stated, that the Aircraft is in typical configuration for the type
and has accumulated an average number of hours and cycles. Deviations from these assumptions can
change significantly our opinion regarding the values.
Table of Contents
July 27, 2009
Page 5
BK Associates, Inc. has no present or contemplated future interest in the Aircraft, nor any
interest that would preclude our making a fair and unbiased estimate. This appraisal represents
the opinion of BK Associates, Inc. and reflects our best judgment based on the information
available to us at the time of preparation and the time and budget constraints imposed by the
client. It is not given as a recommendation, or as an inducement, for any financial transaction
and further, BK Associates, Inc. assumes no responsibility or legal liability for any action taken
or not taken by the addressee, or any other party, with regard to the appraised equipment. By
accepting this appraisal, the addressee agrees that BK Associates, Inc. shall bear no such
responsibility or legal liability. This appraisal is prepared for the use of the addressee and
shall not be provided to other parties without the express consent of the addressee.
Sincerely,
BK ASSOCIATES, INC.
John F. Keitz
President
ISTAT Senior Certified Appraiser
And Appraiser Fellow
JFK/kf
Attachment
Table of Contents
Figure 1
American Airlines
Current Values $millions
AIRCRAFT
SERIAL
DATE of
MTOW
1/2 time
TYPE
REGIST.
NUMBER
ENGINE
MFGR.
Lbs.
CMV
1
B737-823
N909AN
29511
CFM56-7B26
05-19-1999
174,200
27.60
2
B737-823
N910AN
29512
CFM56-7B26
05-25-1999
174,200
27.60
3
B737-823
N912AN
29513
CFM56-7B26
06-24-1999
174,200
27.60
4
B737-823
N914AN
29515
CFM56-7B26
07-16-1999
174,200
27.60
5
B737-823
N915AN
29516
CFM56-7B26
07-23-1999
174,200
27.60
6
B737-823
N916AN
29517
CFM56-7B26
08-06-1999
174,200
28.20
7
B737-823
N917AN
29518
CFM56-7B26
08-20-1999
174,200
28.20
8
B737-823
N918AN
29519
CFM56-7B26
09-09-1999
174,200
28.20
9
B737-823
N919AN
29520
CFM56-7B26
09-14-1999
174,200
28.20
10
B767-323ER
N399AN
29606
CF6-80C2B6
05-20-1999
408,000
41.80
11
B777-223
N778AN
29587
Trent 892
06-01-1999
648,000
76.20
12
B777-223
N779AN
29955
Trent 892
06-27-1999
648,000
76.20
Table of Contents
June 12, 2009
Mr. Ken Menezes
Principal — Corporate Finance
American Airlines
VIA E-MAIL
Dear Mr. Menezes:
Morten Beyer & Agnew (mba) has been retained by American Airlines (the Client) to render its Expert
Opinion of the Half-Time Current
Market
1
(CMV) Values of nine (9) Boeing 737-800, one
(1) Boeing 767-300ER, and two (2) Boeing 777-200ER aircraft as of June 2009.
In rendering this Expert Opinion, mba has relied upon industry knowledge, confidentially obtained
data points, its market expertise and current analysis of market trends and conditions, along with
information extrapolated from its semi-annual publication mba
Future Aircraft
Values — Jet
Transport
.
In developing the Value of these aircraft, mba did not inspect the aircraft or the records and
documentation associated with the aircraft, but relied solely on partial information supplied by
the Client. This information was not independently verified by mba. Therefore, we used certain
assumptions that are generally accepted industry practice to calculate the value of aircraft when
more detailed information is not available.
The principal assumptions for these aircraft are as follows:
1.
The aircraft is in good overall condition.
2.
The overhaul status of the airframe, engines, landing gear and other major components are
the equivalent of mid-time/mid-life, or new, unless otherwise stated.
3.
The historical maintenance documentation has been maintained to acceptable international
standards.
4.
The specifications of the aircraft are those most common for an aircraft of its type and
vintage.
5.
The aircraft is in a standard airline configuration.
6.
The aircraft is current as to all Airworthiness Directives and Service Bulletins.
7.
Its modification status is comparable to that most common for an aircraft of its type and
vintage.
8.
Its utilization is comparable to industry averages.
9.
There is no history of accident or incident damage.
10.
No accounting is made for lease revenues, obligations or terms of ownership unless otherwise
specified.
1
Current Market Value is the Appraiser's opinion of the
most likely trading price that may be generated for an aircraft under the
market circumstances that are perceived to exist at the time in question.
Market Value assumes that the aircraft is valued for its highest, best use,
that the parties to the sale transaction are willing, able, prudent and
knowledgeable, and under no unusual pressure for a prompt sale, and that the
transaction would be negotiated in an open and unrestricted market on an
arm's-length basis, for cash or equivalent consideration, and given an adequate
amount of time for effective exposure to prospective buyers.
2101 wilson boulevard | suite 1001 | arlington; virginia 22201
phone: 1 703 276 3200 | fax: 1 703 276 3201
www.mba.aero
Table of Contents
Mr. Ken Menezes
June 12, 2009
Page 2 of 2
American Airlines Valuation
($U.S. Million)
Serial
Date of
No.
Aircraft Type
Number
Registration
Maufacture
Engine Type
MTOW
HTCMV
1
737-800
29511
N909AN
May-99
CFM56-7B26
174,200
26.26
2
737-800
29512
N910AN
May-99
CFM56-7B26
174,200
26.26
3
737-800
29513
N912AN
Jun-99
CFM56-7B26
174,200
26.39
4
737-800
29515
N914AN
Jul-99
CFM56-7B26
174,200
26.52
5
737-800
29516
N915AN
Jul-99
CFM56-7B26
174,200
26.52
6
737-800
29517
N916AN
Aug-99
CFM56-7B26
174,200
26.64
7
737-800
29518
N917AN
Aug-99
CFM56-7B26
174,200
26.64
8
737-800
29519
N918AN
Sep-99
CFM56-7B26
174,200
26.77
9
737-800
29520
N919AN
Sep-99
CFM56-7B26
174,200
26.77
10
767-300ER
29606
N399AN
May-99
CF6-80C2B6
408,000
42.08
11
777-200ER
29587
N778AN
Jun-99
Trent 892
648,000
69.81
12
777-200ER
29955
N779AN
Jun-99
Trent 892
648,000
69.81
Total
$
420.47
Legend for Valuation —
MTOW
Maximum Takeoff off Weight
HT CMV
Half-Time Current Market Value
This Expert Opinion has been prepared for the exclusive use of American Airlines, and shall not be
provided to other parties by mba without the express consent of American Airlines.
This report represents the opinion of mba as to Half-Time Current Market Values of the subject
aircraft and is intended to be advisory only, in nature. mba further certifies that it does not
have, and does not expect to have, any financial or other interest in the subject or similar
aircraft. mba assumes no responsibility or legal liability for any actions taken or not taken by
American Airlines or any other party with regard to the subject aircraft. By accepting this
report, all parties agree that mba shall bear no such responsibility or legal liability.
Sincerely,
Morten Beyer & Agnew, Inc.
June 12, 2009
Stephen P. Rehrmann, ATP/FE
Vice President — Appraisal Group
Morten Beyer & Agnew, Inc.
ISTAT Certified Appraiser
Table of Contents
APPENDIX III
ALLOCABLE PORTION OF THE NOTES AND LOAN TO VALUE RATIOS PER AIRCRAFT
The following tables set forth LTVs for the Allocable Portion of the Notes with respect to
each Aircraft as of the Cut-Off Date and each Payment Date. For any date before the first Payment
Date, the Allocable Portion of the Notes with respect to each Aircraft will be the amount specified
in Appendix III for the Cut-Off Date. For any date after the first Payment Date, other than a
Payment Date, the Allocable Portion of the Notes with respect to each Aircraft will be the amount
specified in Appendix III for the Payment Date that immediately precedes such date.
The LTVs for the Cut-Off Date and each Payment Date listed in such tables were obtained by
dividing (
i
) the Allocable Portion of the Notes with respect to each Aircraft (assuming all of the
Aircraft are subjected to the lien of the Aircraft Security Agreement on or prior to the Cut-Off
Date, and that no Payment Default or redemption has occurred) determined immediately after giving
effect to any principal payments scheduled to be made on each such date by (
ii
) the Assumed
Aircraft Value on such date, calculated based on the Depreciation Assumption, of such Aircraft.
See "Description of the Aircraft and the Appraisals — The Appraisals" and "Description of the Notes
— Security — Loan to Value Ratios of Notes."
The Depreciation Assumption contemplates that the Assumed Aircraft Value of each Aircraft
depreciates annually by approximately 3% of the value at delivery per year for the first 15 years
after delivery of such Aircraft by the manufacturer, by approximately 4% per year thereafter for
the next five years and by approximately 5% each year after that. The appraised value of each
Aircraft is the theoretical value that, when depreciated from the initial delivery of such Aircraft
by the manufacturer in accordance with the Depreciation Assumption, results in the appraised value
of such Aircraft specified under "Prospectus Summary — The Aircraft" and "Description of the
Aircraft and the Appraisals — The Appraisals."
Other rates or methods of depreciation could result in materially different LTVs, and no
assurance can be given (
i
) that the depreciation rate and method assumed for the purposes of the
tables are the ones most likely to occur or (
ii
) as to the actual future value of any Aircraft.
Thus, the tables should not be considered a forecast or prediction of expected or likely LTVs, but
simply a mathematical calculation based on one set of assumptions. See "Risk Factors — Risk
Factors Relating to the Notes and the Exchange Offer — Appraisals should not be relied upon as a
measure of realizable value of the Aircraft."
A. Boeing 737-823
N909AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,260,000.00
$
17,069,000.00
$
0.00
65.0
%
February 1, 2010
25,697,285.71
15,932,300.60
1,136,699.40
62.0
August 1, 2010
25,134,571.43
14,829,380.60
1,102,920.00
59.0
February 1, 2011
24,571,857.14
13,760,223.46
1,069,157.14
56.0
August 1, 2011
24,009,142.86
12,724,829.17
1,035,394.29
53.0
February 1, 2012
23,446,428.57
11,723,197.74
1,001,631.43
50.0
August 1, 2012
22,883,714.29
10,755,329.17
967,868.57
47.0
February 1, 2013
22,321,000.00
9,821,223.45
934,105.72
44.0
August 1, 2013
21,758,285.71
8,920,880.60
900,342.85
41.0
February 1, 2014
21,195,571.43
8,054,300.58
866,580.02
38.0
August 1, 2014
20,632,857.14
7,221,483.43
832,817.15
35.0
February 1, 2015
19,882,571.43
6,362,406.28
859,077.15
32.0
August 1, 2015
19,132,285.71
5,548,346.28
814,060.00
29.0
February 1, 2016
18,382,000.00
4,779,303.42
769,042.86
26.0
August 1, 2016
17,631,714.29
0.00
4,779,303.42
0.0
Appendix III-1
Table of Contents
N910AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,260,000.00
$
17,069,000.00
$
0.00
65.0
%
February 1, 2010
25,697,285.71
15,932,300.60
1,136,699.40
62.0
August 1, 2010
25,134,571.43
14,829,380.60
1,102,920.00
59.0
February 1, 2011
24,571,857.14
13,760,223.46
1,069,157.14
56.0
August 1, 2011
24,009,142.86
12,724,829.17
1,035,394.29
53.0
February 1, 2012
23,446,428.57
11,723,197.74
1,001,631.43
50.0
August 1, 2012
22,883,714.29
10,755,329.17
967,868.57
47.0
February 1, 2013
22,321,000.00
9,821,223.45
934,105.72
44.0
August 1, 2013
21,758,285.71
8,920,880.60
900,342.85
41.0
February 1, 2014
21,195,571.43
8,054,300.58
866,580.02
38.0
August 1, 2014
20,632,857.14
7,221,483.43
832,817.15
35.0
February 1, 2015
19,882,571.43
6,362,406.28
859,077.15
32.0
August 1, 2015
19,132,285.71
5,548,346.28
814,060.00
29.0
February 1, 2016
18,382,000.00
4,779,303.42
769,042.86
26.0
August 1, 2016
17,631,714.29
0.00
4,779,303.42
0.0
N912AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,390,000.00
$
17,153,000.00
$
0.00
65.0
%
February 1, 2010
25,824,500.00
16,011,173.38
1,141,826.62
62.0
August 1, 2010
25,259,000.00
14,902,793.38
1,108,380.00
59.0
February 1, 2011
24,693,500.00
13,828,343.38
1,074,450.00
56.0
August 1, 2011
24,128,000.00
12,787,823.38
1,040,520.00
53.0
February 1, 2012
23,562,500.00
11,781,233.38
1,006,590.00
50.0
August 1, 2012
22,997,000.00
10,808,573.37
972,660.01
47.0
February 1, 2013
22,431,500.00
9,869,843.37
938,730.00
44.0
August 1, 2013
21,866,000.00
8,965,043.37
904,800.00
41.0
February 1, 2014
21,300,500.00
8,094,173.36
870,870.01
38.0
August 1, 2014
20,735,000.00
7,257,233.34
836,940.02
35.0
February 1, 2015
19,981,000.00
6,393,903.34
863,330.00
32.0
August 1, 2015
19,227,000.00
5,575,813.34
818,090.00
29.0
February 1, 2016
18,473,000.00
4,802,963.33
772,850.01
26.0
August 1, 2016
17,719,000.00
0.00
4,802,963.33
0.0
Table of Contents
N914AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,520,000.00
$
17,238,000.00
$
0.00
65.0
%
February 1, 2010
25,951,714.29
16,090,046.16
1,147,953.84
62.0
August 1, 2010
25,383,428.57
14,976,206.15
1,113,840.01
59.0
February 1, 2011
24,815,142.86
13,896,463.30
1,079,742.85
56.0
August 1, 2011
24,246,857.14
12,850,817.58
1,045,645.72
53.0
February 1, 2012
23,678,571.43
11,839,269.01
1,011,548.57
50.0
August 1, 2012
23,110,285.71
10,861,817.58
977,451.43
47.0
February 1, 2013
22,542,000.00
9,918,463.29
943,354.29
44.0
August 1, 2013
21,973,714.29
9,009,206.15
909,257.14
41.0
February 1, 2014
21,405,428.57
8,134,046.13
875,160.02
38.0
August 1, 2014
20,837,142.86
7,292,983.26
841,062.87
35.0
February 1, 2015
20,079,428.57
6,425,400.40
867,582.86
32.0
August 1, 2015
19,321,714.29
5,603,280.40
822,120.00
29.0
February 1, 2016
18,564,000.00
4,826,623.25
776,657.15
26.0
August 1, 2016
17,806,285.71
0.00
4,826,623.25
0.0
N915AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,520,000.00
$
17,238,000.00
$
0.00
65.0
%
February 1, 2010
25,951,714.29
16,090,046.16
1,147,953.84
62.0
August 1, 2010
25,383,428.57
14,976,206.15
1,113,840.01
59.0
February 1, 2011
24,815,142.86
13,896,463.30
1,079,742.85
56.0
August 1, 2011
24,246,857.14
12,850,817.58
1,045,645.72
53.0
February 1, 2012
23,678,571.43
11,839,269.01
1,011,548.57
50.0
August 1, 2012
23,110,285.71
10,861,817.58
977,451.43
47.0
February 1, 2013
22,542,000.00
9,918,463.29
943,354.29
44.0
August 1, 2013
21,973,714.29
9,009,206.15
909,257.14
41.0
February 1, 2014
21,405,428.57
8,134,046.13
875,160.02
38.0
August 1, 2014
20,837,142.86
7,292,983.26
841,062.87
35.0
February 1, 2015
20,079,428.57
6,425,400.40
867,582.86
32.0
August 1, 2015
19,321,714.29
5,603,280.40
822,120.00
29.0
February 1, 2016
18,564,000.00
4,826,623.25
776,657.15
26.0
August 1, 2016
17,806,285.71
0.00
4,826,623.25
0.0
Table of Contents
N916AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,640,000.00
$
17,316,000.00
$
0.00
65.0
%
February 1, 2010
26,069,142.86
16,162,851.79
1,153,148.21
62.0
August 1, 2010
25,498,285.71
15,043,971.79
1,118,880.00
59.0
February 1, 2011
24,927,428.57
13,959,343.22
1,084,628.57
56.0
August 1, 2011
24,356,571.43
12,908,966.08
1,050,377.14
53.0
February 1, 2012
23,785,714.29
11,892,840.36
1,016,125.72
50.0
August 1, 2012
23,214,857.14
10,910,966.07
981,874.29
47.0
February 1, 2013
22,644,000.00
9,963,343.21
947,622.86
44.0
August 1, 2013
22,073,142.86
9,049,971.78
913,371.43
41.0
February 1, 2014
21,502,285.71
8,170,851.77
879,120.01
38.0
August 1, 2014
20,931,428.57
7,325,983.19
844,868.58
35.0
February 1, 2015
20,170,285.71
6,454,474.61
871,508.58
32.0
August 1, 2015
19,409,142.86
5,628,634.61
825,840.00
29.0
February 1, 2016
18,648,000.00
4,848,463.18
780,171.43
26.0
August 1, 2016
17,886,857.14
0.00
4,848,463.18
0.0
N917AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,640,000.00
$
17,316,000.00
$
0.00
65.0
%
February 1, 2010
26,069,142.86
16,162,851.79
1,153,148.21
62.0
August 1, 2010
25,498,285.71
15,043,971.79
1,118,880.00
59.0
February 1, 2011
24,927,428.57
13,959,343.22
1,084,628.57
56.0
August 1, 2011
24,356,571.43
12,908,966.08
1,050,377.14
53.0
February 1, 2012
23,785,714.29
11,892,840.36
1,016,125.72
50.0
August 1, 2012
23,214,857.14
10,910,966.07
981,874.29
47.0
February 1, 2013
22,644,000.00
9,963,343.21
947,622.86
44.0
August 1, 2013
22,073,142.86
9,049,971.78
913,371.43
41.0
February 1, 2014
21,502,285.71
8,170,851.77
879,120.01
38.0
August 1, 2014
20,931,428.57
7,325,983.19
844,868.58
35.0
February 1, 2015
20,170,285.71
6,454,474.61
871,508.58
32.0
August 1, 2015
19,409,142.86
5,628,634.61
825,840.00
29.0
February 1, 2016
18,648,000.00
4,848,463.18
780,171.43
26.0
August 1, 2016
17,886,857.14
0.00
4,848,463.18
0.0
Table of Contents
N918AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,770,000.00
$
17,400,000.00
$
0.00
65.0
%
February 1, 2010
26,196,357.14
16,241,724.57
1,158,275.43
62.0
August 1, 2010
25,622,714.29
15,117,384.57
1,124,340.00
59.0
February 1, 2011
25,049,071.43
14,027,463.14
1,089,921.43
56.0
August 1, 2011
24,475,428.57
12,971,960.28
1,055,502.86
53.0
February 1, 2012
23,901,785.71
11,950,875.99
1,021,084.29
50.0
August 1, 2012
23,328,142.86
10,964,210.28
986,665.71
47.0
February 1, 2013
22,754,500.00
10,011,963.13
952,247.15
44.0
August 1, 2013
22,180,857.14
9,094,134.56
917,828.57
41.0
February 1, 2014
21,607,214.29
8,210,724.55
883,410.01
38.0
August 1, 2014
21,033,571.43
7,361,733.10
848,991.45
35.0
February 1, 2015
20,268,714.29
6,485,971.67
875,761.43
32.0
August 1, 2015
19,503,857.14
5,656,101.67
829,870.00
29.0
February 1, 2016
18,739,000.00
4,872,123.09
783,978.58
26.0
August 1, 2016
17,974,142.86
0.00
4,872,123.09
0.0
N919AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
26,770,000.00
$
17,400,000.00
$
0.00
65.0
%
February 1, 2010
26,196,357.14
16,241,724.57
1,158,275.43
62.0
August 1, 2010
25,622,714.29
15,117,384.57
1,124,340.00
59.0
February 1, 2011
25,049,071.43
14,027,463.14
1,089,921.43
56.0
August 1, 2011
24,475,428.57
12,971,960.28
1,055,502.86
53.0
February 1, 2012
23,901,785.71
11,950,875.99
1,021,084.29
50.0
August 1, 2012
23,328,142.86
10,964,210.28
986,665.71
47.0
February 1, 2013
22,754,500.00
10,011,963.13
952,247.15
44.0
August 1, 2013
22,180,857.14
9,094,134.56
917,828.57
41.0
February 1, 2014
21,607,214.29
8,210,724.55
883,410.01
38.0
August 1, 2014
21,033,571.43
7,361,733.10
848,991.45
35.0
February 1, 2015
20,268,714.29
6,485,971.67
875,761.43
32.0
August 1, 2015
19,503,857.14
5,656,101.67
829,870.00
29.0
February 1, 2016
18,739,000.00
4,872,123.09
783,978.58
26.0
August 1, 2016
17,974,142.86
0.00
4,872,123.09
0.0
Table of Contents
B. Boeing 767-323ER
N399AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
40,150,000.00
$
26,097,000.00
$
0.00
65.0
%
February 1, 2010
39,289,642.86
24,359,553.29
1,737,446.71
62.0
August 1, 2010
38,429,285.71
22,673,253.28
1,686,300.01
59.0
February 1, 2011
37,568,928.57
21,038,574.71
1,634,678.57
56.0
August 1, 2011
36,708,571.43
19,455,517.57
1,583,057.14
53.0
February 1, 2012
35,848,214.29
17,924,081.85
1,531,435.72
50.0
August 1, 2012
34,987,857.14
16,444,267.56
1,479,814.29
47.0
February 1, 2013
34,127,500.00
15,016,074.70
1,428,192.86
44.0
August 1, 2013
33,267,142.86
13,639,503.27
1,376,571.43
41.0
February 1, 2014
32,406,785.71
12,314,553.25
1,324,950.02
38.0
August 1, 2014
31,546,428.57
11,041,224.66
1,273,328.59
35.0
February 1, 2015
30,399,285.71
9,727,746.08
1,313,478.58
32.0
August 1, 2015
29,252,142.86
8,483,096.08
1,244,650.00
29.0
February 1, 2016
28,105,000.00
7,307,274.64
1,175,821.44
26.0
August 1, 2016
26,957,857.14
0.00
7,307,274.64
0.0
Table of Contents
C. Boeing 777-223ER
N778AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
73,156,666.67
$
47,552,000.00
$
0.00
65.0
%
February 1, 2010
71,589,023.81
44,385,148.69
3,166,851.31
62.0
August 1, 2010
70,021,380.95
41,312,568.69
3,072,580.00
59.0
February 1, 2011
68,453,738.10
38,334,047.25
2,978,521.44
56.0
August 1, 2011
66,886,095.24
35,449,584.39
2,884,462.86
53.0
February 1, 2012
65,318,452.38
32,659,180.10
2,790,404.29
50.0
August 1, 2012
63,750,809.52
29,962,834.39
2,696,345.71
47.0
February 1, 2013
62,183,166.67
27,360,547.24
2,602,287.15
44.0
August 1, 2013
60,615,523.81
24,852,318.66
2,508,228.58
41.0
February 1, 2014
59,047,880.95
22,438,148.63
2,414,170.03
38.0
August 1, 2014
57,480,238.10
20,118,037.16
2,320,111.47
35.0
February 1, 2015
55,390,047.62
17,724,769.06
2,393,268.10
32.0
August 1, 2015
53,299,857.14
15,456,912.38
2,267,856.68
29.0
February 1, 2016
51,209,666.67
13,314,467.13
2,142,445.25
26.0
August 1, 2016
49,119,476.19
0.00
13,314,467.13
0.0
N779AN
Assumed
Allocable
Scheduled
Date
Aircraft Value
Portion
Principal Payment
LTV
Cut-Off Date
$
73,156,666.67
$
47,552,000.00
$
0.00
65.0
%
February 1, 2010
71,589,023.81
44,385,148.69
3,166,851.31
62.0
August 1, 2010
70,021,380.95
41,312,568.69
3,072,580.00
59.0
February 1, 2011
68,453,738.10
38,334,047.25
2,978,521.44
56.0
August 1, 2011
66,886,095.24
35,449,584.39
2,884,462.86
53.0
February 1, 2012
65,318,452.38
32,659,180.10
2,790,404.29
50.0
August 1, 2012
63,750,809.52
29,962,834.39
2,696,345.71
47.0
February 1, 2013
62,183,166.67
27,360,547.24
2,602,287.15
44.0
August 1, 2013
60,615,523.81
24,852,318.66
2,508,228.58
41.0
February 1, 2014
59,047,880.95
22,438,148.63
2,414,170.03
38.0
August 1, 2014
57,480,238.10
20,118,037.16
2,320,111.47
35.0
February 1, 2015
55,390,047.62
17,724,769.06
2,393,268.10
32.0
August 1, 2015
53,299,857.14
15,456,912.38
2,267,856.68
29.0
February 1, 2016
51,209,666.67
13,314,467.13
2,142,445.25
26.0
August 1, 2016
49,119,476.19
0.00
13,314,467.13
0.0
Table of Contents
American Airlines, Inc.
Offer to Exchange
$276,400,000 Outstanding 13.0% 2009-2 Secured Notes due 2016 for
$276,400,000 Registered 13.0% 2009-2 Secured Notes due 2016
PROSPECTUS
, 2009
Table of Contents
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table sets forth the estimated fees and expenses (except for the Securities and
Exchange Commission registration fee, which is not an estimate) payable by the registrant in connection with the registration
of the notes:
Securities and Exchange Commission registration fee
$
15,424
Printing costs for registration statement, prospectus and related documents
$
60,000
Legal fees and expenses
$
200,000
Accountants' fees and expenses
$
15,000
Exchange agent fees
$
4,000
Miscellaneous
$
10,576
Total
$
305,000
ITEM 14. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Section 145 of the DGCL, as amended, provides in regard to indemnification of directors and
officers as follows:
§ 145. Indemnification of officers, directors, employees and agents; insurance
(a) A corporation shall have power to indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (other than an action
by or in the right of the corporation) by reason of the fact that the person is or was a
director, officer, employee or agent of the corporation, or is or was serving at the request
of the corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against expenses (including
attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with such action, suit or proceeding if the person
acted in good faith and in a manner the person reasonably believed to be in or not opposed
to the best interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe the person's conduct was unlawful. The
termination of any action, suit or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption
that the person did not act in good faith and in a manner which the person reasonably
believed to be in or not opposed to the best interests of the corporation, and, with respect
to any criminal action or proceeding, had reasonable cause to believe that the person's
conduct was unlawful.
(b) A corporation shall have power to indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action or suit by or
in the right of the corporation to procure a judgment in its favor by reason of the fact
that the person is or was a director, officer, employee or agent of the corporation, or is
or was serving at the request of the corporation as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise against
expenses (including attorneys' fees) actually and reasonably incurred by the person in
connection with the defense or settlement of such action or suit if the person acted in good
faith and in a manner the person reasonably believed to be in or not opposed to the best
interests of the corporation and except that no indemnification shall be made in respect of
any claim, issue or matter as to which such person shall have been adjudged to be liable to
the corporation unless and only to the extent that the Court of Chancery or the court in
which such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or
such other court shall deem proper.
II-1
Table of Contents
(c) To the extent that a present or former director or officer of a corporation has
been successful on the merits or otherwise in defense of any action, suit or proceeding
referred to in subsections (a) and (b) of this section, or in defense of any claim, issue or
matter therein, such person shall be indemnified against expenses (including attorneys'
fees) actually and reasonably incurred by such person in connection therewith.
(d) Any indemnification under subsections (a) and (b) of this section (unless ordered
by a court) shall be made by the corporation only as authorized in the specific case upon a
determination that indemnification of the present or former director, officer, employee or
agent is proper in the circumstances because the person has met the applicable standard of
conduct set forth in subsections (a) and (b) of this section. Such determination shall be
made, with respect to a person who is a director or officer at the time of such
determination, (1) by a majority vote of the directors who are not parties to such action,
suit or proceeding, even though less than a quorum, or (2) by a committee of such directors
designated by majority vote of such directors, even though less than a quorum, or (3) if
there are no such directors, or if such directors so direct, by independent legal counsel in
a written opinion, or (4) by the stockholders.
(e) Expenses (including attorneys' fees) incurred by an officer or director in
defending any civil, criminal, administrative or investigative action, suit or proceeding
may be paid by the corporation in advance of the final disposition of such action, suit or
proceeding upon receipt of an undertaking by or on behalf of such director or officer to
repay such amount if it shall ultimately be determined that such person is not entitled to
be indemnified by the corporation as authorized in this section. Such expenses (including
attorneys' fees) incurred by former directors and officers or other employees and agents may
be so paid upon such terms and conditions, if any, as the corporation deems appropriate.
(f) The indemnification and advancement of expenses provided by, or granted pursuant
to, the other subsections of this section shall not be deemed exclusive of any other rights
to which those seeking indemnification or advancement of expenses may be entitled under any
bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to
action in such person's official capacity and as to action in another capacity while holding
such office.
(g) A corporation shall have power to purchase and maintain insurance on behalf of any
person who is or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against such person and incurred by such person in any such capacity, or
arising out of such person's status as such, whether or not the corporation would have the
power to indemnify such person against such liability under this section.
(h) For purposes of this section, references to "the corporation" shall include, in
addition to the resulting corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger which, if its separate
existence had continued, would have had power and authority to indemnify its directors,
officers, and employees or agents, so that any person who is or was a director, officer,
employee or agent of such constituent corporation, or is or was serving at the request of
such constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, shall stand in the same
position under this section with respect to the resulting or surviving corporation as such
person would have with respect to such constituent corporation if its separate existence had
continued.
(i) For purposes of this section, references to "other enterprises" shall include
employee benefit plans; references to "fines" shall include any excise taxes assessed on a
person with respect to any employee benefit plan; and references to "serving at the request
of the corporation" shall include any service as a director, officer, employee or agent of
the corporation which imposes duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner such person reasonably
believed to be in the interest of the participants and beneficiaries of an employee benefit
plan shall be deemed to have acted in a manner "not opposed to the best interests of the
corporation" as referred to in this section.
II-2
Table of Contents
(j) The indemnification and advancement of expenses provided by, or granted pursuant
to, this section shall, unless otherwise provided when authorized or ratified, continue as
to a person who has ceased to be a director, officer, employee or agent and shall inure to
the benefit of the heirs, executors and administrators of such a person.
(k) The Court of Chancery is hereby vested with exclusive jurisdiction to hear and
determine all actions for advancement of expenses or indemnification brought under this
section or under any bylaw, agreement, vote of stockholders or disinterested directors, or
otherwise. The Court of Chancery may summarily determine a corporation's obligation to
advance expenses (including attorneys' fees).
Article VII of American Airlines, Inc.'s by-laws provide in regard to indemnification of
directors and officers as follows:
Section 1.
Nature of Indemnity
. The corporation shall indemnify any person who was or
is a party or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative by
reason of the fact that he is or was or has agreed to become a director or officer of the
corporation, or is or was serving or has agreed to serve at the request of the corporation
as a director or officer, of another corporation, partnership, joint venture, trust or other
enterprise, or by reason of any action alleged to have been taken or omitted in such
capacity, and may indemnify any person who was or is a party or is threatened to be made a
party to such an action by reason of the fact that he is or was or has agreed to become an
employee or agent of the corporation, or is or was serving or has agreed to serve at the
request of the corporation as an employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred by him or
on his behalf in connection with such action, suit or proceeding and any appeal therefrom,
if he acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action or
proceeding had no reasonable cause to believe his conduct was unlawful; except that in the
case of an action or suit by or in the right of the corporation to procure a judgment in its
favor (1) such indemnification shall be limited to expenses (including attorneys' fees)
actually and reasonably incurred by such person in the defense or settlement of such action
or suit, and (2) no indemnification shall be made in respect of any claim, issue or matter
as to which such person shall have been adjudged to be liable to the corporation unless and
only to the extent that the Delaware Court of Chancery or the court in which such action or
suit was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is fairly and
reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or
such other court shall deem proper.
The termination of any action, suit or proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that the person did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the corporation, and,
with respect to any criminal action or proceeding, had reasonable cause to believe that his
conduct was unlawful.
Section 2.
Successful Defense
. To the extent that a director, officer, employee or
agent of the corporation has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in Section l hereof or in defense of any claim, issue
or matter therein, he shall be indemnified against expenses (including attorneys' fees)
actually and reasonably incurred by him in connection therewith.
Section 3.
Determination That Indemnification Is Proper
. (a) Any indemnification of a
director or officer of the corporation under Section l hereof (unless ordered by a court)
shall be made by the corporation unless a determination is made that indemnification of the
director or officer is not proper in the circumstances because he has not met the applicable
standard of conduct set forth in Section l hereof. Such determination shall be made, with
respect to a director or officer, (1) by a majority vote of the directors who are not
parties to such action, suit or proceeding, even though less than a quorum, or (2) by a
committee of such directors designated by a majority vote of such directors, even though
less than a
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quorum, or (3) if there are no such directors, or if such directors so direct, by
independent legal counsel in a written opinion, or (4) by the stockholders.
(b) Any indemnification of an employee or agent of the corporation (who is not also a
director or officer of the corporation) under Section l hereof (unless ordered by a court)
may be made by the corporation upon a determination that indemnification of the employee or
agent is proper in the circumstances because such person has met the applicable standard of
conduct set forth in Section l hereof. Such determination, in the case of an employee or
agent, may be made (1) in accordance with the procedures outlined in the second sentence of
Section 3(a), or (2) by an officer of the corporation, upon delegation of such authority by
a majority of the Board of Directors.
Section 4.
Advance Payment of Expenses
. Expenses (including attorneys' fees) incurred
by a director or officer in defending any civil, criminal, administrative or investigative
action, suit or proceeding shall be paid by the corporation in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking by or on
behalf of the director or officer to repay such amount if it shall ultimately be determined
that he is not entitled to be indemnified by the corporation as authorized in this Article.
Such expenses (including attorneys' fees) incurred by other employees and agents may be so
paid upon such terms and conditions, if any, as the corporation deems appropriate. The board
of directors may authorize the corporation's counsel to represent a director, officer,
employee or agent in any action, suit or proceeding, whether or not the corporation is a
party to such action, suit or proceeding.
Section 5.
Procedure for Indemnification of Directors or Officers
. Any
indemnification of a director or officer of the corporation under Sections l and 2, or
advance of costs, charges and expenses of a director or officer under Section 4 of this
Article, shall be made promptly, and in any event within 60 days, upon the written request
of the director or officer. If the corporation fails to respond within 60 days, then the
request for indemnification shall be deemed to be approved. The right to indemnification or
advances as granted by this Article shall be enforceable by the director or officer in any
court of competent jurisdiction if the corporation denies such request, in whole or in part.
Such person's costs and expenses incurred in connection with successfully establishing his
right to indemnification, in whole or in part, in any such action shall also be indemnified
by the corporation. It shall be a defense to any such action (other than an action brought
to enforce a claim for the advance of costs, charges and expenses under Section 4 of this
Article where the required undertaking, if any, has been received by the corporation) that
the claimant has not met the standard of conduct set forth in Section l of this Article, but
the burden of proving such defense shall be on the corporation. Neither the failure of the
corporation (including its board of directors or a committee thereof, its independent legal
counsel, and its stockholders) to have made a determination prior to the commencement of
such action that indemnification of the claimant is proper in the circumstances because he
has met the applicable standard of conduct set forth in Section l of this Article, nor the
fact that there has been an actual determination by the corporation (including its board of
directors or a committee thereof, its independent legal counsel, and its stockholders) that
the claimant has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the claimant has not met the applicable standard of
conduct.
Section 6.
Survival; Preservation of Other Rights
. The foregoing indemnification
provisions shall be deemed to be a contract between the corporation and each director,
officer, employee and agent who serves in such capacity at any time while these provisions
as well as the relevant provisions of the Delaware Corporation Law are in effect and any
repeal or modification thereof shall not affect any right or obligation then existing with
respect to any state of facts then or previously existing or any action, suit, or proceeding
previously or thereafter brought or threatened based in whole or in part upon any such state
of facts. Such a "contract right" may not be modified retroactively without the consent of
such director, officer, employee or agent.
The indemnification provided by this Article VII shall not be deemed exclusive of any
other rights to which those indemnified may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in his official
capacity and as to action in another capacity while holding such office, and shall continue
as to a person who has ceased to be a director, officer, employee or agent and shall inure
to the benefit of the heirs, executors and administrators of such a person.
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Section 7.
Insurance
. The corporation shall purchase and maintain insurance on behalf
of any person who is or was or has agreed to become a director or officer of the
corporation, or is or was serving at the request of the corporation as a director or officer
of another corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against him and incurred by him or on his behalf in any such capacity, or
arising out of his status as such, whether or not the corporation would have the power to
indemnify him against such liability under the provisions of this Article, provided that
such insurance is available on acceptable terms, which determination shall be made by a vote
of a majority of the entire board of directors.
Section 8.
Savings Clause
. If this Article or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the corporation shall
nevertheless indemnify each director or officer and may indemnify each employee or agent of
the corporation as to costs, charges and expenses (including attorneys' fees), judgments,
fines and amounts paid in settlement with respect to any action, suit or proceeding, whether
civil, criminal, administrative or investigative, including an action by or in the right of
the corporation, to the full extent permitted by any applicable portion of this Article that
shall not have been invalidated and to the full extent permitted by applicable law.
Section 102(b)(7) of the DGCL, as amended, provides in regard to the limitation of liability
of directors and officers as follows:
(b) In addition to the matters required to be set forth in the certificate of
incorporation by subsection (a) of this section, the certificate of incorporation may also
contain any or all of the following matters:
(7) A provision eliminating or limiting the personal liability of a director to the
corporation or its stockholders for monetary damages for breach of fiduciary duty as a
director, provided that such provision shall not eliminate or limit the liability of a
director: (i) For any breach of the director's duty of loyalty to the corporation or its
stockholders; (ii) for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law; (iii) under § 174 of this title; or (iv) for any
transaction from which the director derived an improper personal benefit. No such provision
shall eliminate or limit the liability of a director for any act or omission occurring prior
to the date when such provision becomes effective. All references in this paragraph to a
director shall also be deemed to refer (x) to a member of the governing body of a
corporation which is not authorized to issue capital stock, and (y) to such other person or
persons, if any, who, pursuant to a provision of the certificate of incorporation in
accordance with § 141(a) of this title, exercise or perform any of the powers or duties
otherwise conferred or imposed upon the board of directors by this title.
Article Ninth of American Airlines, Inc.'s certificates of incorporation provide in regard to
the limitation of liability of directors and officers as follows:
NINTH: No director of the corporation shall be liable to the corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director, except for
liability (i) for any breach of the director's duty of loyalty to the corporation or its
shareholders, (ii) for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General
Corporation Law, or (iv) for any transaction from which the director derived an improper
personal benefit.
American Airlines, Inc.'s directors and officers are also insured against claims arising out
of the performance of their duties in such capacities.
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ITEM 15. RECENT SALES OF UNREGISTERED SECURITIES
On July 31, 2009, we issued and privately placed $276,400,000 aggregate principal amount of
13% 2009-2 Secured Notes due 2016, or the Notes. The Initial Purchasers for the Notes were Morgan
Stanley & Co. Incorporated and Stifel, Nicolaus & Company, Incorporated. The Notes were sold to
qualified institutional investors pursuant to Rule 144A under the Securities Act, to persons
outside the United States in compliance with Regulation S under the Securities Act and to a limited
number of institutional "accredited investors" within the meaning of Rule 501(a)(1), (2), (3) or
(7) under the Securities Act in compliance with Regulation D under the Securities Act . The sale of
the Notes to the Initial Purchasers was exempt from the registration requirements of the Securities
Act pursuant to Section 4(2) thereof. The issue price of the Notes was 100% and we paid the
Initial Purchasers underwriting fees, discounts, commissions or other compensation of $3,316,800.
ITEM 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
Exhibits.
A list of Exhibits filed herewith is contained on the Exhibit Index and is incorporated herein
by reference.
ITEM 17. UNDERTAKINGS
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(a) To include any prospectus required by section 10(a)(3) of the Securities
Act of 1933;
(b) To reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental
change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the
total dollar value of securities would not exceed that which was registered) and any
deviation from the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant to Rule
424(b) if, in the aggregate, the changes in volume and price represent no more than
a 20% change in the maximum aggregate offering price set forth in the "Calculation
of Registration Fee" table in the effective registration statement;
(c) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any material
change to such information in the registration statement;
(2) That, for the purpose of determining any liability under the Securities Act of 1933,
each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offering therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering.
(4) That, for purposes of determining liability under the Securities Act of 1933 to any
purchaser:
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(a) Each prospectus filed pursuant to Rule 424(b) as part of the registration
statement relating to an offering, other than registration statements relying on
Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed
to be part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a
registration statement or prospectus that is part of the registration statement or
made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such document
immediately prior to such date of first use.
(5) That, for the purpose of determining liability of the registrant under the
Securities Act of 1933 to any purchaser in the initial distribution of securities:
The undersigned registrant undertakes that in a primary offering of securities of the
undersigned registrant pursuant to this registration statement, regardless of the
underwriting method used to sell the securities to the purchaser, if the securities are
offered or sold to such purchaser by means of any of the following communications, the
undersigned registrant will be a seller to the purchaser and will be considered to offer or
sell such securities to such purchaser:
(a) Any preliminary prospectus or prospectus of the undersigned registrant
relating to the offering required to be filed pursuant to Rule 424;
(b) Any free writing prospectus relating to the offering prepared by or on
behalf of the undersigned registrant or used or referred to by the undersigned
registrant;
(c) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities
provided by or on behalf of the undersigned registrant; and
(d) Any other communication that is an offer in the offering made by the
undersigned registrant to the purchaser.
(6) Insofar as indemnification for liabilities arising under the Securities Act of 1933
may be permitted to directors, officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been advised that in the opinion
of the Securities and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the registrant
will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in the Act and will be governed
by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, American Airlines, Inc. has duly
caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized in the City of Fort Worth, State of Texas, on September 3, 2009.
AMERICAN AIRLINES, INC.
By:
/s/ Gary F. Kennedy
GARY F. KENNEDY
Senior Vice President, General Counsel
and Chief Compliance Officer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and
appoints Thomas W. Horton, Gary F. Kennedy and Kenneth W. Wimberly, and each of them severally, as
his or her true and lawful attorney-in-fact and agent, acting alone, with full power of
substitution and resubstitution, for him or her and in his or her name, place and stead, in any and
all capacities, to sign any or all amendments (including post-effective amendments) to this
registration statement, and to file the same, with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, granting unto said
attorney-in-fact full power and authority to do and perform each and every act and thing requisite
or necessary to be done in and about the premises, as such person, hereby ratifying and confirming
all that said attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully do
or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Gerard J. Arpey
Chairman, President and
September 3, 2009
Gerard J. Arpey
Chief Executive Officer
(Principal Executive Officer)
/s/ Thomas W. Horton
Executive Vice President —
September 3, 2009
Thomas W. Horton
Finance and Planning and
Chief Financial Officer
(Principal Financial and Accounting Officer)
/s/ John W. Backmann
Director
September 3, 2009
John W. Bachmann
/s/ David L. Boren
Director
September 3, 2009
David L. Boren
S-1
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Signature
Title
Date
/s/ Armando M. Codina
Director
September 3, 2009
Armando M. Codina
/s/ Rajat K. Gupta
Director
September 3, 2009
Rajat K. Gupta
/s/ Alberto Ibargüen
Director
September 3, 2009
Alberto Ibargüen
/s/ Ann McLaughlin Korologos
Director
September 3, 2009
Ann McLaughlin Korologos
/s/ Michael A. Miles
Director
September 3, 2009
Michael A. Miles
/s/ Philip J. Purcell
Director
September 3, 2009
Philip J. Purcell
/s/ Ray M. Robinson
Director
September 3, 2009
Ray M. Robinson
/s/ Judith Rodin
Director
September 3, 2009
Judith Rodin
/s/ Matthew K. Rose
Director
September 3, 2009
Matthew K. Rose
/s/ Roger T. Staubach
Director
September 3, 2009
Roger T. Staubach
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EXHIBIT INDEX
Exhibit
Number
Description of Document
3.1
Restated Certificate of Incorporation of American Airlines, Inc., as amended, incorporated by
reference to American's report on Form 10-Q for the quarter ended September 30, 2003.
3.2
Bylaws of American Airlines, Inc., amended January 22, 2003, incorporated by reference to
American's report on Form 10-K for the year ended December 31, 2002.
4.1
Indenture and Security Agreement, dated as of July 31, 2009, between American Airlines, Inc.
and U.S. Bank Trust National Association, as Trustee.
4.2
Form of Aircraft Security Agreement, among American Airlines, Inc., U.S. Bank Trust National
Association, as Trustee and U.S. Bank Trust National Association, as Security Agent.
4.3
Form of American Airlines, Inc. 13.0% 2009-2 Secured Note due 2016.
4.4
Registration Rights Agreement, dated July 31, 2009, between American Airlines, Inc. and
Morgan Stanley & Co. Incorporated as representative of the several initial purchasers.
5.1
Opinion of Gary F. Kennedy, Senior Vice President, General Counsel and Chief Compliance
Officer of American Airlines, Inc.
10.1
Information Technology Services Agreement, dated July 1, 1996, between American Airlines,
Inc. and The Sabre Group, Inc., incorporated by reference to Exhibit 10.6 to The Sabre Group
Holdings, Inc.'s Registration Statement on Form S-1, file number 333-09747. Confidential
treatment was granted as to a portion of this document.
10.2
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Gerard J. Arpey, dated May 21, 1998, incorporated by reference to Exhibit 10.61 to AMR's
report on Form 10-K for the year ended December 31, 1998.
10.3
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Peter M. Bowler, dated May 21, 1998, incorporated by reference to Exhibit 10.63 to AMR's
report on Form 10-K for the year ended December 31, 1998.
10.4
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Daniel P. Garton, dated May 21, 1998, incorporated by reference to Exhibit 10.66 to AMR's
report on Form 10-K for the year ended December 31, 1998.
10.5
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Monte E. Ford, dated November 15, 2000, incorporated by reference to Exhibit 10.74 to
AMR's report on Form 10-K for the year ended December 31, 2000.
10.6
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Henry C. Joyner, dated January 19, 2000, incorporated by reference to Exhibit 10.74 to
AMR's report on Form 10-K for the year ended December 31, 1999.
10.7
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and William K. Ris, Jr., dated October 20, 1999, incorporated by reference to Exhibit 10.79
to AMR's report on Form 10-K for the year ended December 31, 1999.
10.8
Form of Amendment to Executive Termination Benefits Agreement dated January 1, 2005,
incorporated by reference to Exhibit 10.8 to American's report on Form 10-K for the year
ended December 31, 2008.
10.9
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Gary F. Kennedy dated February 3, 2003, incorporated by reference to Exhibit 10.55 to
AMR's report on Form 10-K for the year ended December 31, 2002.
10.10
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Robert W. Reding dated May 20, 2003, incorporated by reference to Exhibit 10.71 to AMR's
report on Form 10-K for the year ended December 31, 2003.
Table of Contents
Exhibit
Number
Description of Document
10.11
Employment agreement between AMR, American Airlines and William K. Ris, Jr. dated November
11, 1999, incorporated by reference to Exhibit 10.73 to AMR's report on Form 10-K for the
year ended December 31, 2003.
10.12
Employment agreement between AMR, American Airlines and Robert W. Reding dated May 21, 2003,
incorporated by reference to Exhibit 10.94 to AMR's report on Form 10-K for the year ended
December 31, 2004.
10.13
Amendment of employment agreement between AMR, American Airlines and Thomas W. Horton dated
July 15, 2008, incorporated by reference to Exhibit 10.5 to AMR's report on Form 10-Q for the
quarterly period ended June 30, 2008.
10.14
Amended and Restated Executive Termination Benefits Agreement between AMR, American Airlines
and Jeffrey J. Brundage dated April 1, 2004, incorporated by reference to Exhibit 10.5 to
AMR's report on Form 10-Q for the quarterly period ended March 31, 2004.
10.15
Supplemental Executive Retirement Program for Officers of American Airlines, Inc., as amended
and restated as of January 1, 2005, incorporated by reference to Exhibit 10.16 to American's
report on Form 10-K for the year ended December 31, 2008.
10.16
Aircraft Purchase Agreement by and between American Airlines, Inc. and The Boeing Company,
dated October 31, 1997, incorporated by reference to Exhibit 10.48 to AMR Corporation's
report on Form 10-K for the year ended December 31, 1997. Confidential treatment was granted
as to a portion of this document.
10.17
Letter Agreement dated November 17, 2004 and Purchase Agreement Supplements dated January 11,
2005 between the Boeing Company and American Airlines, Inc., incorporated by reference to
Exhibit 10.99 to AMR's report on Form 10-K for the year ended December 31, 2004. Confidential
treatment was granted as to a portion of these agreements.
10.18
Letter Agreement between the Boeing Company and American Airlines, Inc. dated May 5, 2005,
incorporated by reference to Exhibit 10.7 to AMR's report on Form 10-Q for the quarterly
period ended June 30, 2005. Confidential treatment was granted as to a portion of this
agreement.
10.19
Trust Agreement Under Supplemental Retirement Program for Officers of American Airlines,
Inc., as amended and restated as of June 1, 2007, incorporated by reference to Exhibit 10.20
to American's report on Form 10-K for the year ended December 31, 2008.
10.20
Trust Agreement Under Supplemental Executive Retirement Program for Officers of American
Airlines, Inc Participating in the $uper $aver Plus Plan, as amended and restated as of June
1, 2007, incorporated by reference to Exhibit 10.21 to American's report on Form 10-K for the
year ended December 31, 2008.
10.21
Credit Agreement dated as of December 17, 2004, among American Airlines, Inc., AMR
Corporation, the Lenders from time to time party thereto, Citicorp USA, Inc., as
Administrative Agent for the Lenders, JPMorgan Chase Bank, N.A., as Syndication Agent and
Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., as Joint Lead Arrangers and
Joint Book-Running Managers, incorporated by reference to Exhibit 10.103 to AMR's report on
Form 10-K for the year ended December 31, 2004.
10.22
2009 Annual Incentive Plan for American, incorporated by reference to Exhibit 99.1 to AMR's
current report on Form 8-K dated January 23, 2009.
10.23
Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated August 17, 2007, incorporated by reference to Exhibit 10.24 to American Airlines Inc.'s
report on Form 10-K for the year ended December 31, 2007. Portions of this Exhibit have been
omitted and filed separately with the Securities and Exchange Commission pursuant to a
confidential treatment request under Rule 24b-2 of the Securities and Exchange Act of 1934,
as amended.
10.24
Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated November 20, 2007, incorporated by reference to Exhibit 10.25 to American Airlines
Inc.'s reported on Form 10-K from the year ended December 31, 2007. Portions of this Exhibit
have been omitted and filed separately with the Securities and Exchange Commission pursuant
to a confidential treatment request under Rule 24b-2 of the Securities and Exchange Act of
1934, as amended.
Table of Contents
Exhibit
Number
Description of Document
10.25
Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated December 10, 2007, incorporated by reference to Exhibit 10.26 to American Airlines
Inc.'s reported on Form 10-K from the year ended December 31, 2007. Portions of this Exhibit
have been omitted and filed separately with the Securities and Exchange Commission pursuant
to a confidential treatment request under Rule 24b-2 of the Securities and Exchange Act of
1934, as amended.
10.26
Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated January 20, 2008, incorporated by reference to Exhibit 10.27 to American Airlines
Inc.'s reported on Form 10-K from the year ended December 31, 2007. Portions of this Exhibit
have been omitted and filed separately with the Securities and Exchange Commission pursuant
to a confidential treatment request under Rule 24b-2 of the Securities and Exchange Act of
1934, as amended.
10.27
Purchase Agreement Supplement by and between American Airlines, Inc. and The Boeing Company,
dated February 11, 2008, incorporated by reference to Exhibit 10.28 to American Airlines
Inc.'s reported on Form 10-K from the year ended December 31, 2007. Portions of this
Exhibit have been omitted and filed separately with the Securities and Exchange Commission
pursuant to a confidential treatment request under Rule 24b-2 of the Securities and Exchange
Act of 1934, as amended.
10.28
Purchase Agreement No. 3219 between American Airlines, Inc. and The Boeing Company, dated as
of October 15, 2008. Portions of this Exhibit have been omitted and filed separately with
the Securities and Exchange Commission pursuant to a confidential treatment request under
Rule 24b-2 of the Securities and Exchange Act of 1934, as amended, incorporated by reference
to Exhibit 10.138 to AMR's report on Form 10-K for the year ended December 31, 2008.
10.29
Form of Stock Appreciation Right Agreement (with awards effective July 20, 2009 to executive
officers noted), incorporated by reference to Exhibit 10.1 to American's report on Form 10-Q
for the quarterly period ended June 30, 2009.
10.30
Form of 2009 Deferred Share Award Agreement (with awards effective July 20, 2009 to
executive officers noted), incorporated by reference to Exhibit 10.2 to American's report on
Form 10-Q for the quarterly period ended June 30, 2009.
10.31
Form of Performance Share Agreement under the 2009 — 2011 Performance Share Plan for Officers
and Key Employees and the 2009 — 2011 Performance Share Plan for Officers and Key Employees
(with awards effective July 20, 2009 to executive officers noted) , incorporated by reference
to Exhibit 10.3 to American's report on Form 10-Q for the quarterly period ended June 30,
2009.
10.32
AMR Corporation 2009 Long Term Incentive Plan (approved by shareholders at AMR's May 20, 2009
Annual Meeting of stockholders), incorporated by reference to Exhibit 10.4 to American's
report on Form 10-Q for the quarterly period ended June 30, 2009.
10.33
Purchase Agreement No. 1977 Supplement No. 32 dated as of June 9, 2009, incorporated by
reference to Exhibit 10.1 to American's report on Form 10-Q for the quarterly period ended
June 30, 2009.
12.1
Statement regarding computation of ratio of earnings to fixed charges for each year in the
five-year period ended December 31, 2008, incorporated by reference to Exhibit 12 to
American's report on Form 10-K for the year ended December 31, 2008.
12.2
Statement regarding computation of ratio of earnings to fixed charges for the six months
ended June 30, 2009 and 2008, incorporated by reference to Exhibit 12 to American's report on
Form 10-Q for the quarterly period ended June 30, 2009.
23.1
Consent of Ernst & Young LLP.
23.2
Consent of Gary F. Kennedy, Senior Vice President, General Counsel and Chief Compliance
Officer of American Airlines, Inc. (included in Exhibit 5.1).
23.3
Consent of Aircraft Information Services, Inc.
23.4
Consent of BK Associates, Inc.
23.5
Consent of Morten Beyer & Agnew, Inc.
24.1
Power of Attorney (contained on signature pages hereto).
25.1
Statement of Eligibility of U.S. Bank Trust National Association, as Trustee, on Form T-1.
Table of Contents
Exhibit
Number
Description of Document
99.1
Form of Letter of Transmittal.
99.2
Form of Notice of Guaranteed Delivery.
99.3
Form of Letter to Nominee.
99.4
Form of Letter to Clients.
99.5
Form of Instructions to Registered Holder and/or Book-Entry Transfer Participant from
Beneficial Owner.