American Airlines plans to invest US$100m in an aircraft maintenance centre in Sao Paulo, a Brazilian minister said Thursday, touting it as a sign of confidence in Latin America's largest economy despite Brazil's recession and latest political turmoil. Investment Partnerships minister Wellington Moreira Franco said the airline would set up its first maintenance centre in South America at Sao Paulo's Guarulhos international, and would eventually offer services to other airlines. "An American Airlines executive told me [Thursday] the company does not share the pessimistic view of Brazil in the media and believes Brazil's market will grow strongly," he said. An American Airlines spokesman said the airline has plans to invest in Brazil but that he could not immediately confirm the amount. <br/>
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American Airlines Group Thursday became the second major US airline this week to lower guidance on a closely watched revenue metric, sending shares of several major carriers lower. However, analysts said the forecasts for lower unit revenue at American and Delta Air Lines had different causes, and were not a sign that the air travel market is hitting an unforeseen slump "Things are improving, but at a slower rate than airlines had hoped for," CFRA Research analyst Jim Corridore said, blaming recent market dips on the slow trickle of reports on carriers' performance. American said Thursday before market opening its unit revenue would rise 1.5% to 3.5%, cutting an earlier projection that total revenue per available seat mile would rise 2.5% to 4.5%. <br/>
American Airlines is adding new flight destinations from its Chicago hub less than 2 weeks after United Continental announced a similar expansion. O’Hare International will get 7 new routes to mid-sized US cities starting July 5 at American, according to a letter Thursday from the airline’s president, Robert Isom. The Chicago airport also got the bulk of 47 new round trips announced by United Feb 27. The new service sharpens a clash between the two airlines since Scott Kirby became president of United 6 months ago after leaving the same post at American. Both airlines, which have major operations in Chicago, are adding flights to secondary destinations where there’s less competition and more ability to control prices. In announcing United’s new routes last month, Kirby vowed to regain ground lost to rivals. <br/>