Revamps In Tulsa Allow Carrier To Work On More Aircraft

A complete restructuring of operations at American Airlines' maintenance facility in Tulsa, OK two years ago has reaped real benefits, the Fort Worth, TX-based carrier said Thursday.

The Associated Press reports American says it has saved over $500 million since the base was revamped, in order to streamline operations and free up room for the facility to work on jets for other carriers. That puts American on track to raise $175 million this year, the airline says, through servicing non-AA planes in Tulsa, Fort Worth, and Kansas City, MO.

"Our people not only found ways to get the job done, and done right, they also simultaneously improved productivity and efficiency," said AMR CEO Gerard Arpey during a Thursday ceremony, according to the Fort Worth Star-Telegram.

The story of the Tulsa facility is an example of management and labor hatching a mutually-beneficial deal. Two years ago, American was strongly considering closing at least one of its maintenance bases to cut costs. The airline reconsidered, however, and agreed to a deal with the Transport Workers Union to improve efficiency in Tulsa.

The goal of that agreement? $500 million in savings by the end of 2006. The savings came, in part, through reducing the time it takes to service an airliner, and get it back into service.

That's proven attractive to other carriers, as well, that have chosen Tulsa to handle maintenance on their aircraft as well. While American charges higher rates than shops overseas, American Airlines Senior VP Technical Operations Bob Reding says it can also return aircraft to service faster.

"It's a combination of the entire maintenance bill that we think we can be competitive in on the world stage," he said.

Most of the maintenance-related revenue forecast for 2007 will come from existing customers, the airline says. Some of those carriers, like Miami Air, initially used American to handle light maintenance work on its 737s. The carrier now uses AA to handle overhauls, and refitting those planes with Blended Winglets.

More work for the maintenance facilities also means more jobs, Reding said. About 200 jobs were added in 2006, through new-hires and recalling laid-off workers.

American is pushing for similar changes at its other maintenance facilities, hoping for another $600 million in savings over two years.

FMI: www.aa.com