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Although the company has a lease agreement with the city until 2029, American Airlines has announced that it will be closing its overhaul base at Kansas City International Airport September 2010.

According to Tim Smith, spokesman for American Airlines, the closure is expected to affect all 490 American Airlines employees remaining at the facility in some way, either through buyouts, early retirement or layoffs. Some employees may also be able to move to similar positions at one of the company’s two remaining overhaul facilities in Tulsa, Okla., and Fort Worth, Texas.

While unfortunate, Smith said the facility’s closure was a necessity based on the company’s recent decline in size.

"The simple reason is the reality is our airline and the number of aircraft we operate is smaller than it used to be due to the decline in the industry and the recession," he said.

The closure of the overhaul base did not come entirely unexpectedly and in January of this year American Airlines laid off about 170 employees at the overhaul base in Kansas City with around 250 others leaving through early retirement as part of nationwide job cuts that affected thousands of American Airlines employees.

While American Airlines is completely removing its maintenance operations from Kansas City as part of the closure, officials at the Kansas City Aviation Department have assured the city American Airlines intends to honor its financial obligations to the city.

According to Mark Van Loh, director of the aviation department, American Airlines pays an annual lease to the city of $1.1 million for the overhaul base. Van Loh said American Airlines has agreed to continue paying the lease until 2029, which amounts to $23.5 million for the city.

Van Loh said American Airlines has also agreed to continue paying for environmental monitoring at the overhaul base at a cost of about $500,000 a year.

Although American Airlines will be officially vacating the overhaul base sometime in September 2010, the 7 million-square-foot base will not be vacant. Smith Electric Vehicles, a United Kingdom-based electric vehicle manufacturer, has already set up shop at the overhaul base in an engine repair facility and has already begun production.

Van Loh said the aviation department will also continue to seek additional tenants for the facility.

Staff writer Michael Westblade can be reached at 389-6636 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Comments (1)

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American Airlines to close base
written by Garden Tiller, November 07, 2009

I am sure the 490 American Airlines employees are sad about the news. I hope they can find a new work. Anyway, thanks for the update on the American Airlines.

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