American Airlines' KC Overhaul Base Meets Goals

Jan. 22--American Airlines has achieved its previously stated goal of generating $150 million in additional value at its Kansas City maintenance facility.

American management and union officials will discuss how the overhaul base generated $150 million new revenue and cost-savings at a news conference Wednesday morning.

For the past few years, American has focused on making its three maintenance facilities (the others are in Tulsa and Fort Worth) into profit centers for the company by securing third-party work and cutting internal costs.

Nearly two years ago, the airline said it would try to generate $150 million through new outside work and operational efficiencies at the Kansas City base by the end of 2007. Since then, the facility has secured contract work from customers such as Air Canada and Alcoa Inc.'s air cargo services unit.

While most major airlines have reduced their maintenance operations and outsourced that work, American has kept nearly 90 percent of all its maintenance work within the company.

American also said today that installation of broadband Internet service had been completed on 15 of the Boeing 767 aircraft. That work also was done in Kansas City.

American said the new feature would have to be tested first and certified by the Federal Aviation Administration before it became available to the airline's customers.

| Randolph Heaster, [email protected]