American Cleared to Fly All But 3 Jets

DALLAS, April 12, 2008— -- American Airlines received clearancefrom federal aviation officials today to return all but three of theremaining 300 grounded jets to service, an airline spokesman said.

But it won't be until Sunday morning before the MD-80s can bepositioned throughout the American system to fly a dull day'sschedule, spokesman Charley Wilson said.

American planned to return to normal operations thisafternoon, Wilson said.

The nation's largest airline canceled nearly 3,300 flights. Thecancellations started Tuesday as Fort Worth-based American grounded300 MD-80 jets to wrap wiring bundles to meet federal safetystandards and prevent fires.

The cancellations stranded hundreds of thousands of peopleduring the week.

The airline's mechanics and Federal Aviation Administrationinspectors cleared more of the planes to return to service Friday.American said 226 of its MD-80s were back in service by Fridaymorning, and it expected the rest by tonight.

The groundings had come as a surprise.

American officials said they thought they had the needed repairwork completed two weeks ago when it scrubbed more than 400flights, but the FAA said the wiring still was not secured andstowed properly in wheel wells.

Gerard Arpey, chairman and chief executive of American parentAMR Corp., said the costs of the cancellations to American will runinto the tens of millions of dollars -- including vouchers toreimburse stranded customers, overtime for maintenance crews andlost revenue. An analyst with Standard & Poor's estimated it couldeasily top $30 million.

Arpey said that neither American's mechanics nor the FAA were toblame for the groundings, and he said he took responsibility forthe cancellations. He said the company would hire a consultant tohelp it comply with FAA safety rules in the future.

American's entire fleet averages 15 years in age, the secondoldest in the industry behind Northwest Airlines, according toregulatory filings by the airlines.