FORT WORTH, Texas -
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
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.