The news is in but is this good for everyone at MCIE?
http://biz.yahoo.com/prnews/031022/daw029_1.html
http://biz.yahoo.com/prnews/031022/daw029_1.html
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"Near term employment levels"? Do they mean for the entire company or just MCI?Voltman480 said:Check this out...off Jetnet.....
Notice where they say that the scaling back at MCIE job loss would be mostly handled by attrition! Lets hope this is the case!
"The company expects that any near-term employment levels will be affected mostly through attrition. "
Maintenance Base Realignments Completed
Airline Would Sign 25-Year Lease for Kansas City Wide-Body Hangar
Company Able To Keep All Three Maintenance Bases After
It Obtains $100 Million In Incentives And Achieves
On-Going Operating Efficiencies
American Airlines today announced it has reached an understanding with the city of Kansas City and the state of Missouri that would allow the company to retain a portion of its maintenance operation in Kansas City. Under the plan, the company would sign a 25-year lease for its wide-body hangar and associated shops at its Kansas City Maintenance Base, where maintenance work is done on the company's wide-body fleet.
"Getting to this point has taken a remarkable demonstration of commitment on the part of state and city leaders," said Gerard J. Arpey, president and CEO of American Airlines. "My sincere appreciation goes to Kansas City Mayor Kay Barnes and Missouri Governor Holden for all of their support."
The understanding with Kansas City and Missouri would complete the company's plans for allocating work more efficiently among its three overhaul bases. American said it will maintain the size and scope of its current operation at its Fort Worth Alliance Maintenance Base. American will continue to work with the city and state leaders on measures that will further lower American's operating costs at the Fort Worth facility. As previously announced, the airline will add jobs at its Tulsa, Okla., base. American had considered closing one of its three bases to adjust for the reduction over the past two years in its fleet size.
Under the Kansas City plan, the company would phase out its narrow-body maintenance operation at the base. The company expects that any near-term employment levels will be affected mostly through attrition.
The package of support from Kansas City includes:
$40 million to be used primarily for wide-body hangar improvements;
$37 million in additional funding for facility modifications and enhancements during the lease term; and
$4.5 million of marketable tax credits for asbestos remediation.
This support from the cities and states where American operates the bases will help the company with its priority to keep the majority of its maintenance work in-house as long as it can do so and remain competitive. Currently, American outsources the least maintenance work of any other major carrier.
"This has been one of the most challenging periods in this industry's history," Arpey said. "It is only through remarkable support from the cities and states where we operate bases that we were able to protect jobs and lower our operating costs enough to maintain an important presence in those communities. With this support from Kansas City, Tulsa and Fort Worth, American has obtained more than $100 million in incentives, as well as achieving operating efficiencies at the bases.
"It was always our hope to retain all three of the bases and to protect as many of our employees as possible who perform such critical functions," Arpey said. "I'm glad that working together with the communities and the Transport Workers Union (TWU), we found the means to retain all three operations. A large part of the credit for our decision to retain a maintenance presence in Kansas City must go to the International TWU staff as well as TWU Local leaders. The fact that we are making this announcement today is evidence that they represented their members well."
"I'd like to thank all of the members of the TWU who continued to work with the highest level of professionalism throughout these long and difficult discussions, " said Jim Little, director Transport Division and international administrative vice president of TWU.
The TWU is one of the unions that has embraced American's effort to change the way it does business. The company has adopted a new spirit of collaboration with its unions and nonrepresented employees as a logical way to meet industry challenges.
This makes the most sense, with the announcement of job retention in STL and the movement of work. AA would not have signed a 25 year lease without some gurantees, Maybe with the increase in production we will be working on NW and Alaska Airplanes.TOOLS said:The local News here in Kansas City reports the "gradual reduction of the 737 line over 2 years" then the work force at MCIE could go down to 700! Of course by then the whole facility should be fully ADA compliant to accomodate the geriatric work force.
What parts are those?Checking it Out said:We are now starting to work on Eagle parts, so the cost structure is showing signs of improving.
What about the MD-80 "C" Checks being Outsourced under claim of "limited internal capacity".Checking it Out said:This makes the most sense, with the announcement of job retention in STL and the movement of work. AA would not have signed a 25 year lease without some gurantees, Maybe with the increase in production we will be working on NW and Alaska Airplanes.
We are now starting to work on Eagle parts, so the cost structure is showing signs of improving.
Great Job all you Brothers and Sisters who have worked tirelessly to keep work and Jobs at AA!!!!!!