[H3 class=drophead]$200 million maintenance plant would replace existing facility in path of new runway[/H3][SPAN class=text2]Margaret Jackson[/SPAN]
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[P]American Airlines is considering spending about $200 million to build a 500,000-square-foot maintenance facility near Lambert-St. Louis International Airport, according to people familiar with the airport.[/P]
[P]Airport Director Leonard Griggs acknowledged that he''s in preliminary discussions with American, but declined to provide details of the project. [/P]
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[P]A new facility is needed because American''s existing St. Louis line-maintenance facility will be razed in 2005 to make room for Lambert''s new runway, said Marty Heires, an American spokesman who said he was unaware of the specifics of the project. [/P]
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[P]The existing 204,982-square-foot facility employs more than 600 aircraft mechanics and includes maintenance hangars and shops, a warehouse area and office space. Routine maintenance procedures are performed at the facility. [/P]
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[P]A lot of times there is maintenance that is done overnight while a plane is at a particular station, Heires said. The more major, scheduled maintenance would be done at a dedicated facility like in Kansas City. [BR][BR][/P]
[P]In addition to its Kansas City maintenance facility, engine overhauls are performed at the Tulsa and Alliance-Fort Worth maintenance and engineering bases. [/P]
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[P]American is struggling against huge losses, reporting earlier this month a nearly $1 billion loss for the third quarter, and it''s forecasting even bigger losses for the fourth quarter. But that shouldn''t prevent the company from planning for its future, said Ron Kuhlmann, vice president at Unisys R2A, a Hayward, Calif.-based strategic transportation consulting firm. [/P]
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[P]They have to carry out a business plan that would adequately meet the needs required in that time frame, Kuhlmann said. Whether or not by 2005 the landscape looks enough like it does right now that it would require (a new maintenance facility) is anybody''s guess. It could be that with the continued contraction of the major carriers, they won''t need any more capacity for maintenance. There are already cases where airlines are closing down or shrinking maintenance facilities. [/P]
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[P]Ray Neidl, an airline analyst with investment banker Blaylock & Partners in New York, said airlines typically receive financial incentives from local governments to assist with the project. The airline then would lease the facility, he said. [/P]
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[P]The facility would be built on land owned by the Airport Authority, but St. Louis County could be called on to administer a tax increment financing district or issue industrial revenue bonds through a program known as Chapter 100. [/P]
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[P]We stand ready to assist, of course, said Steve Anderson, vice president of business development at the St. Louis County Economic Council. Anyone can invite us, and we can extend our authority as long as it''s in the geographical boundaries of St. Louis County. [/P]
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[P]Despite its recent announcement that it will park 42 aircraft and defer delivery of 34 new planes across its system, American is still investing in St. Louis. In September, the Fort Worth, Texas-based carrier announced plans to invest $14.6 million in its St. Louis hub. The improvements package includes eight additional counter positions on the north ticket counter for a total of 30 positions; adding regional jet-size loading bridges on the B and D concourses; and installation of a pre-conditioned air system that will cool aircraft and loading bridges in the summer and heat them in the winter. [/P]
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[P]As part of the deal, the airport has committed to spending $7.1 million on improvements, including expanding security checkpoints; adding new concessions such as Sbarro, Starbucks, a Jose Cuervo restaurant, a Home Turf bar and a Great Steak and Potatoes restaurant; installing new flight information displays on the B, C and D concourses; constructing a connector between the C and D concourses to relieve congestion behind the C-D security checkpoint; and installing new carpeting along the concourse corridors. [BR][BR][A href=http://stlouis.bizjournals.com/stlouis/stories/2002/11/04/story1.html]http://stlouis.bizjournals.com/stlouis/stories/2002/11/04/story1.html[/A][BR][BR][/P]
[P]
[P]American Airlines is considering spending about $200 million to build a 500,000-square-foot maintenance facility near Lambert-St. Louis International Airport, according to people familiar with the airport.[/P]
[P]Airport Director Leonard Griggs acknowledged that he''s in preliminary discussions with American, but declined to provide details of the project. [/P]
[P][/P]
[P]
[P]A new facility is needed because American''s existing St. Louis line-maintenance facility will be razed in 2005 to make room for Lambert''s new runway, said Marty Heires, an American spokesman who said he was unaware of the specifics of the project. [/P]
[P][/P]
[P]
[P]The existing 204,982-square-foot facility employs more than 600 aircraft mechanics and includes maintenance hangars and shops, a warehouse area and office space. Routine maintenance procedures are performed at the facility. [/P]
[P][/P]
[P]
[P]A lot of times there is maintenance that is done overnight while a plane is at a particular station, Heires said. The more major, scheduled maintenance would be done at a dedicated facility like in Kansas City. [BR][BR][/P]
[P]In addition to its Kansas City maintenance facility, engine overhauls are performed at the Tulsa and Alliance-Fort Worth maintenance and engineering bases. [/P]
[P][/P]
[P]
[P]American is struggling against huge losses, reporting earlier this month a nearly $1 billion loss for the third quarter, and it''s forecasting even bigger losses for the fourth quarter. But that shouldn''t prevent the company from planning for its future, said Ron Kuhlmann, vice president at Unisys R2A, a Hayward, Calif.-based strategic transportation consulting firm. [/P]
[P][/P]
[P]
[P]They have to carry out a business plan that would adequately meet the needs required in that time frame, Kuhlmann said. Whether or not by 2005 the landscape looks enough like it does right now that it would require (a new maintenance facility) is anybody''s guess. It could be that with the continued contraction of the major carriers, they won''t need any more capacity for maintenance. There are already cases where airlines are closing down or shrinking maintenance facilities. [/P]
[P][/P]
[P]
[P]Ray Neidl, an airline analyst with investment banker Blaylock & Partners in New York, said airlines typically receive financial incentives from local governments to assist with the project. The airline then would lease the facility, he said. [/P]
[P][/P]
[P]
[P]The facility would be built on land owned by the Airport Authority, but St. Louis County could be called on to administer a tax increment financing district or issue industrial revenue bonds through a program known as Chapter 100. [/P]
[P][/P]
[P]
[P]We stand ready to assist, of course, said Steve Anderson, vice president of business development at the St. Louis County Economic Council. Anyone can invite us, and we can extend our authority as long as it''s in the geographical boundaries of St. Louis County. [/P]
[P][/P]
[P]
[P]Despite its recent announcement that it will park 42 aircraft and defer delivery of 34 new planes across its system, American is still investing in St. Louis. In September, the Fort Worth, Texas-based carrier announced plans to invest $14.6 million in its St. Louis hub. The improvements package includes eight additional counter positions on the north ticket counter for a total of 30 positions; adding regional jet-size loading bridges on the B and D concourses; and installation of a pre-conditioned air system that will cool aircraft and loading bridges in the summer and heat them in the winter. [/P]
[P][/P]
[P]
[P]As part of the deal, the airport has committed to spending $7.1 million on improvements, including expanding security checkpoints; adding new concessions such as Sbarro, Starbucks, a Jose Cuervo restaurant, a Home Turf bar and a Great Steak and Potatoes restaurant; installing new flight information displays on the B, C and D concourses; constructing a connector between the C and D concourses to relieve congestion behind the C-D security checkpoint; and installing new carpeting along the concourse corridors. [BR][BR][A href=http://stlouis.bizjournals.com/stlouis/stories/2002/11/04/story1.html]http://stlouis.bizjournals.com/stlouis/stories/2002/11/04/story1.html[/A][BR][BR][/P]
