FORT WORTH, Texas, Sept. 29, 2015 /PRNewswire/ -- Today, Rolls-Royce
and American Airlines announced plans to dissolve Texas Aero Engine
Services LLC (TAESL). TAESL is a 50-50 joint venture between
Rolls-Royce and American Airlines Group in Fort Worth, Texas, that provides maintenance,
repair, and overhaul services on aircraft engines.
The combination of reductions in demand and lack of future
growth opportunities for the business has led Rolls-Royce to
request the closure of TAESL, which American Airlines has
accepted.
TAESL was originally established in 1998 to work on Rolls-Royce
aircraft engines operated by American Airlines including the Tay
620/650, RB211, and Trent 800. Demand for work on those engines has
fallen significantly. The Tay engine left American's fleet
completely in 2004 and RB211 work is declining as planes from
American's Boeing 757 fleet are retired.
"TAESL has a proud history of supporting Rolls-Royce to serve
American Airlines and other customers over many years.
Unfortunately, after reviewing load forecasts for the TAESL
programs, Rolls-Royce has concluded that declining future volumes
of overhauls for Trent 800 and RB211 will no longer support a
commercially viable operation," said Simon
Burr, Chief Operating Officer for Civil Large Engines,
Rolls-Royce.
"Our primary concern is for American Airlines team members
working at TAESL. They have consistently delivered quality work and
made significant contributions to American and Rolls-Royce. Their
level of expertise is second to none," said David Seymour, Senior Vice President for
Technical Operations at American Airlines. "Unfortunately, there
simply isn't enough work to sustain the cost of operating this
facility. We will work with the TWU to create some additional new
maintenance opportunities in the Dallas-Fort Worth area, as well as offer
continued employment throughout American at other locations for
those who desire it."
About 600 American Airlines employees currently work at TAESL,
including 500 who are represented by the Transport
Workers Union of America. The airline also employs about 100
management and support employees at this facility. American
will provide continued employment opportunities for all 500
frontline mechanics and TWU-represented employees throughout
its system, and is also creating more than 100 TWU-represented jobs
in the Dallas-Fort Worth area as a
way to offset the facility's closure.
"It's unfortunate when market and economic conditions cause work
to shift, but how we help the people whose lives are affected when
these events occur matters greatly," Seymour continued. "In
addition to ensuring all of our frontline mechanics and other
frontline employees at TAESL have continued employment
opportunities if they want them, we will also support our
management team located at TAESL. Those in management and support
functions affected by this closure will be offered a
competitive severance and outplacement package if other
opportunities within either Rolls or American are not
available."
Work currently done at TAESL for American and other airlines
will begin moving to other Rolls-Royce approved MRO facilities in
consultation with TAESL's current customers. Final closure of TAESL
is expected by January 2016.
About American Airlines Group
American Airlines Group (NASDAQ: AAL) is the holding company for
American Airlines and US Airways. Together with regional partners,
operating as American Eagle and US Airways Express, the airlines
operate an average of nearly 6,700 flights per day to nearly 350
destinations in more than 50 countries. American is a founding
member of the oneworld alliance, whose members and
members-elect serve nearly 1,000 destinations with 14,250 daily
flights to 150 countries. This year American topped Fortune
Magazine's list of best business turnarounds and its stock was
added to the S&P 500 index. Connect with American on
Twitter @AmericanAir and
at Facebook.com/AmericanAirlines.
About Rolls-Royce Holdings plc
Rolls-Royce's vision is to create better power for a changing world
via two main business segments, Aerospace and Land & Sea. These
business segments address markets with two strong technology
platforms, gas turbines and reciprocating engines. Aerospace
comprises Civil Aerospace and Defense Aerospace. Land & Sea
comprises Marine, Nuclear and Power Systems. Rolls-Royce has
customers in more than 120 countries, comprising more than 380
airlines and leasing customers, 160 armed forces, 4,000 marine
customers including 70 navies, and more than 5,000 power and
nuclear customers.
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SOURCE American Airlines Group