American Airlines files for Chapter 11 bankruptcy

11.29.2011
Statements applicable to Mike Neal, president and CEO, Tulsa Metro Chamber:

The company has experienced hard times before, but the Tulsa region has also witnessed the ability of its employees and leadership to rally around a common goal – and that is to reinvent processes, identify cost-reduction measures, and again make the company sound.

This is not an isolated occurrence, but one that many airlines have previously encountered with the steady rise in fuel costs, maintenance, and inventory replacement. Hard decisions are facing the AMR, Corp. Board of Directors and management, but now, perhaps more than ever, our largest employer and our friends and neighbors need support from the business community and area elected officials.

It is too early to speculate, but a Chapter 11 filing to reorganize American Airlines potentially has untold impact in the Tulsa region and would reverberate throughout the entire economy.

The Chamber is in regular contact with officials at American Airlines MRO – Tulsa , together the Chamber, with the City of Tulsa, Tulsa County, area municipalities, Gov. Mary Fallin, regional legislative delegation, area municipalities, the Oklahoma Department of Commerce, and Oklahoma Congressional delegation, have pledged our support as the reorganization progresses.

Editor’s note:

Background
American Airlines is a primary recipient of a number of Chamber-led initiatives to grow and sustain its workforce in the Tulsa region, such as:

Vision 2025
The Chamber led the planning process with INCOG to develop the Vision 2025 package and was the chief advocate for including the economic development element for American Airlines, a $22.3 million fund for “capital improvements, equipment, tooling and training.” The Chamber raised $800,000 from multiple companies in the community to fund the campaign to pass the entire package. Each of the four propositions passed with 60 percent or more of the vote.

Opportunity Fund
Chamber staff assisted with legislation to create the state’s Opportunity Fund, which allowed two Tulsa-area aerospace companies, including American Airlines, to complete large-scale expansions in 2009. Under an order approved by Gov. Henry in 2006, $5.7 million in state incentive funds was allotted to help American Airlines build a new 81,400-square-foot wide-body aircraft maintenance hangar at Tulsa International Airport. The hangar was completed and opened in September 2009 and is owned by the City of Tulsa and Tulsa Airport Authority.

Aerospace Engineering Incentive
The chamber utilized significant lobbying resources for two legislative sessions to assist in passing the Oklahoma Aerospace Engineering Incentive legislation in 2008. House Bill 3239 provides for tax credits for newly hired engineers of 5 percent of their salary on annual state income tax; gives the hiring companies a 10 percent credit on payroll for newly hired engineers from Oklahoma institutions and 5 percent for those hired from out of state; and provides for a 50 percent tax credit on tuition reimbursed for new engineers if employers reimburse for education expenses. The bill was put on a two-year suspension in the spring of 2010 due to state budget constraints, but was reinstated in 2011.

Encouraging growth, sustaining workforce
In partnership with American Airlines, Mayor Dewey Bartlett and the Chamber have begun a process to identify American Airlines’ needs, to successfully and sustainably grow in the Tulsa region over the next 25 years. The Chamber, City of Tulsa, Tulsa County, area municipalities, Gov. Mary Fallin, regional legislative delegation, area municipalities, the Oklahoma Department of Commerce, and Oklahoma Congressional delegation are committed to securing resources to ensure American Airlines remains competitive in its industry.

Aerospace as a target industry
Through its privately funded, five-year economic development plan, Tulsa’s Future, the Chamber focuses efforts on target industries – those most concentrated in the Tulsa region with the greatest growth potential. Aerospace is one of these industries. In 2009, the Chamber hired an aerospace industry professional to serve as director of aerospace/aviation development tasked with strengthening retention, expansion and recruitment of Tulsa-area aerospace companies and identifying areas of improvement to make the region more attractive to relocating aerospace businesses. Aerospace is the only target industry represented with a Chamber staff person.

Education and workforce services
The Chamber dedicates resources, including ChooseTulsaJobs.com, to recruit skilled labor to the region while also connecting our employment base to training options. The Chamber also convenes area education resources, such as Tulsa Community College, Tulsa Tech, and colleges and universities’ engineering programs to collaborate on aerospace-specific employee training.


« back to archive