Allegiant signs $30M maintenance contract with American

American Airlines Maintenance Services and Allegiant Air, a subsidiary of Allegiant Travel Company, have signed a four-year comprehensive maintenance agreement, valued at more than $30 million and covering a variety of services.

The contract calls for American to provide engineering, planning, technical and reliability services, certain component and landing gear repair and overhauls as well as completing the airframe overhaul, known as "Heavy C" checks, for Allegiant's current fleet of 24 MD80 series aircraft, plus any additional MD80 series aircraft as Allegiant grows.

"This comprehensive agreement with Allegiant is a perfect example of the wide range of technical capabilities which American Maintenance Services can provide for our customers," said Bob Reding, American's senior vice president for technical operations. "Our numerous wide- and narrow-body hangars, engine test cells, landing gear and component support shops, technical experience and a customer-focused work force clearly allow us to offer value added, competitive technical services to all of our customers, including low cost carriers, by providing world-class turn times at the highest quality and reliability with 'one-stop shopping.'"

Michael P. Baxter, Allegiant's senior VP of operations, said, "We selected American Maintenance Services because of the value they offer. They provide workmanship and materials of the highest quality and will expedite the return of our aircraft, meaning they can be back in revenue service faster."

Carmine Romano, vice president of American's overhaul base in Tulsa, said, "This contract represents another step toward becoming a World-Class Maintenance Repair and Overhaul (MRO) provider, and that is very important to our employees, our customers and our stakeholders."

Romano said the initial work will add one continuous dock line, with the potential of two docks, depending upon Allegiant's fleet growth.

Dennis Burchette, VP of Transport Workers Union Local 514 in Tulsa, said, "A long-term contract such as this one demonstrates that Allegiant has great confidence in American's maintenance personnel to perform quality work in a timely manner. The company will not be disappointed."

American Airlines and the Transport Workers Union, representing the airline's maintenance workers, have partnered in the past three years to develop a team concept called Working Together. Using the principles of Continuous Improvement, the maintenance team has increased productivity throughout the maintenance organization. Reversing the outsourcing trend now prevalent in the U.S. airline industry, American has been able to seek out and win third-party work, such as the Allegiant contract.

American Maintenance Services offers a full line of airframe, engine and component, and line maintenance services, customizing those services to meet the specific needs of the client. American's MRO business has 62 customers – 80 percent of which are repeat business – located in North and South America. Services are provided by American's overhaul bases in Tulsa, Okla.; Fort Worth, Texas; Kansas City, Mo., and at line maintenance locations in the United States, Latin America and Europe.

Las Vegas based Allegiant Travel Company, is focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Orlando and Tampa/St. Petersburg, Fla. Through its subsidiary, Allegiant Air, the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services.