Rolls-Royce, American Airlines dissolving Texas Aero Engine Services LLC partnership

Rolls-Royce and American Airlines said they plan to dissolve Texas Aero Engine Services LLC (TAESL).

TAESL is a 50-50 joint venture based 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 company said. 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.

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.

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.

American Airlines Group (NASDAQ: AAL) is the holding company for American Airlines and US Airways.