Kansas City Council Approves Leases for American Airlines Overhaul Base
Kansas City Business Journal | Jan. 22, 2010
On Jan. 21, the Kansas City Council unanimously approved three ordinances to lease space at the American Airlines overhaul base at Kansas City International Airport to local company Jet Midwest Inc.
Jet Midwest, a Kansas City-based commercial aircraft and parts supplier, would provide as many as 600 jobs at the overhaul base within five years.
Filling the overhaul base has been a point of concern since American Airlines - based in Fort Worth, Texas, and owned by AMR Corp. - said it would close its overhaul base at KCI, cutting about 490 local jobs.
In January 2004, American negotiated an escape hatch allowing it to cut its work force at the overhaul base to zero without repaying incentives offered by the city.
Kansas City Treasurer Randall Landes said recently that the city issued US$31 million in bonds in August 2005 for the superhangar portion of the city-owned overhaul facility.