City of Kansas City, Mo. Takes Over of Last of KCI Overhaul Base

Tenants Already Operating In Other Areas

The City of Kansas City, Mo., Aviation Department announced today that American Airlines has fully vacated the KCI Overhaul base at Kansas City International Airport. The base had been operated by Trans World Airlines, which began operating the maintenance base in 1954. Since early 2009 American Airlines has returned to the City more than 1.7 million square feet of the KCI Overhaul Base facility, including, the ?narrow-body? hangars and other buildings. The airline remained in the dome-like ?wide-body? hangars and vacated them in early December.

As a result of local leaders? commitment to get Kansas Citians back to work, areas of the base have already been leased and work is already occurring. Frontier Airlines and Jet Midwest are already conducting work in previously reverted narrow-body hangars and other buildings. Smith Electric Vehicles U.S. Corp. is assembling environmentally friendly electric trucks at the facility.

The effort to bring in tenants to utilize the space formerly occupied by American Airlines is part of an aggressive economic development approach at KCI that incorporates a mix of aeronautical and non-aeronautical tenants and development. KCI contributes $5.5 billion to the area economy annually and provides more than 60,000 jobs. The Aviation Department and its economic development partners strive to increase these figures.

?Several years ago the Aviation Department embarked on an ambitious plan to spur aviation- and non aviation-related development at KCI Airport to attract greater numbers of well-paying jobs to the area,? said Mark VanLoh, director of the Aviation Department. ?As the KCI Overhaul Base is being reverted back to the City we are committed to putting that space and Kansas Citians back to work.?

The economic development successes to date are significant with aviation, green industry and other tenants becoming partners of the Aviation Department.

In August 2010, Frontier Airlines parent Republic Airways Holdings, leased two aircraft bays in the base?s narrow body building. The configuration of the narrow body hangars will give Frontier mechanics the ability to work on two aircraft at a time within the two bays. The move makes Kansas City the primary hangar maintenance location for Republic?s Embraer 170 and Airbus 320 aircraft. In addition to performing daily maintenance support of daily aircraft departures at KCI, mechanics are conducting overnight maintenance on one to three aircraft. There are expectations that this work will expand as additional aircraft deliveries are received in 2011.

In April 2010 Jet Midwest, announced it would consolidate its multiple U.S. locations at KCI. When fully established Jet Midwest will operate an engine and aircraft maintenance and repair operation, among other approved ancillary functions. Jet Midwest and its related companies and affiliated partners will bring approximately 500 new jobs to KCI over a five-year period.

In March 2009 the Aviation Department announced that Smith Electric Vehicles U.S. Corp. will assemble zero-emission all-electric trucks in a portion of the Overhaul Base. SEV U.S. Corp. is using 80,000 square feet of Building 2. Smith Electric Vehicles U.S. Corp has developed a highly scalable assembly operation and supply chain to serve the emerging market for urban fleet operators seeking to deliver their goods and services in an environmentally sensitive manner.

In 2008, site preparation work began on Phase I of the 800-acre KCI Intermodal BusinessCentre, a multi-use development that is being managed by Dallas-based Trammell Crow Co. When completed, Phase I will offer infrastructure to support approximately seven buildings offering nearly 2.7 million square feet of commercial space suitable for intermodal distribution and logistics as well as light manufacturing. Phase II calls for extension of infrastructure to a contiguous 400 acres with frontage along two runways at KCI, making this area well suited for the development of air cargo facilities, manufacturing, assembly, industrial and commercial distribution space.

In 2007, the Aviation Department acquired the Ambassador Building at KCI (formerly the world headquarters of Farmland Industries), which offers 260,000 square feet of Class A office space located on a 23-acre campus adjacent to KCI. At just six percent occupancy upon acquisition, the building is now at 65 percent occupancy with more than a dozen tenants employing hundreds.

The Kansas City Airport System is an Enterprise Fund Department of the City of Kansas City, Mo., and is supported wholly by airport user charges. No general tax fund revenues are used for the administration, promotion, operation, or maintenance of the airports in the system. Visit www.flykci.com for more information. Find us on Twitter and Facebook.

Media Contact:

Joe McBride