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American Airlines Is Looking for Tax and Labor Breaks from Fort Worth for New Headquarters

Jun 10, 2014 4:00 am

Skift Take

It’s wise for American to seek these breaks, but the city council would be equally wise to push back since American owes Texas’ Attorney General for his favorable position regarding the merger.

— Jason Clampet

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Brad Loper  / Dallas Morning News/MCT

American Airlines Communications worker Andrea Hugely takes a photo of the new American Airlines Boeing 777-300ER at Terminal D at DFW Airport. Brad Loper / Dallas Morning News/MCT


American Airlines is asking the Fort Worth City Council to approve tax breaks if the airline builds an $88 million operations center on land near its headquarters.

City documents show American wants a break on up to 85 percent of the first year’s taxes on the property and could get economic-development grants from the city in the same amount for 14 more years. The council could vote on the deal Tuesday night.

A draft agreement between the city and the Fort Worth-based airline shows construction costs are estimated at $55 million and American would make $33 million in other improvements. The deal calls for American to use Fort Worth companies and firms owned by women or minorities for some of the work. The city also would waive fees for zoning, inspections and fire-alarm and sprinkler systems.

The center will be used to monitor American and US Airways flights system-wide. The airlines merged in December to form American Airlines Group Inc. The compny would employ at least 1,300 full-time workers at the center by the end of 2015.

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