Collaboration Between Transport Workers Union, American Airlines and Employees Delivers on $150 Million Goal
The American Airlines management team and members of Transport Workers Union Local 530 (TWU) at the American aircraft overhaul base in Kansas City, Mo., have achieved their "Breakthrough Goal" by generating $152.5 million in value creation -- a combination of productivity improvements, cost reductions, and new revenue.
In February 2006, a joint team of management and labor leaders at the base announced a breakthrough goal of $150 million in value creation by the end of 2007 and a strategy for turning the base into a profit center for AMR Corp. Several joint TWU and management teams helped reach the Breakthrough Goal by utilizing American's successful Continuous Improvement process to reduce costs, streamline productivity, and generate revenue from third-party maintenance contracts.
"We knew when we set this very aggressive Breakthrough Goal almost two years ago that we would face many challenges, but we never doubted that we would reach this point. We thank our employees and TWU business partners for their tremendous effort," said Carmine Romano, American's Senior Vice President - Maintenance and Engineering. "We'd also like to thank the leaders of Kansas City and Missouri for their investment into our facilities, which has provided significant hangar improvements and expansions that have enabled us to better compete in the Maintenance, Repair and Overhaul business".
Gordon Clark, TWU Local 530 President, said, "When we set this Breakthrough Goal, we did so with the intention of truly transforming the way we do business and taking our destiny into our own hands. We made the decision not to let others decide our fate, and this milestone is just one of many steps to ensure the future for our membership and for the Kansas City base."
American has made tremendous strides in the last two years at its Kansas City base. As part of a Cabin Improvement Program, all 58 of the airline's fleet of 767-300 aircraft received cabin modifications on schedule by the end of 2007. Employees also managed to shorten the scheduled modification time by as much as 33 percent and saved 62 dock days. This efficiency increase enabled additional work to be done for American and third-parties, while also resulting in fewer days each American aircraft was out of revenue-generating service.
American and other airlines also awarded fleet modifications work to the base, including the installation of winglets on the American 757 fleet. In one of the company's highest-profile initiatives in 2008 -- onboard WiFi connectivity -- American will install and test all connectivity equipment on its 767-200 aircraft. The base has also conducted third-party work for such clients as Air Canada Technical Services, American Eagle, and Blue City Holdings.
"We have made tremendous strides in working to change our Kansas City base, and the success we are celebrating today would not have happened without the tremendous hard work and dedication of our employees," said Ed Chevrestt, General Manager - Kansas City Maintenance Base. "Although we have a lot more work ahead of us, the path we have set upon will ensure we reach our goals of not only establishing a world-class maintenance base here in Kansas City, but also transforming our entire maintenance organization."
From increased efficiencies to numerous cost-savings initiatives, American's maintenance and engineering employees have succeeded in reducing costs and making improvements to become a competitive Maintenance, Repair and Overhaul provider.
About American Airlines
American Airlines is the world's largest airline. American, American Eagle and AmericanConnection® serve 250 cities in over 40 countries with more than 3,900 daily flights. The combined network fleet numbers more than 1,000 aircraft. American's award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld(sm) Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve more than 600 destinations in over 135 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com and AAdvantage are registered trademarks of American Airlines, Inc.
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