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Friday, April 16, 2010
 
Contact: Joe McBride
816-243-3160
 

Jet Midwest to move to KCI Airport


News from the Aviation Department
City of Kansas City, Mo.
www.kcmo.org
CONTACT: Joe McBride, (816) 243-3164
FOR IMMEDIATE RELEASE: April 16, 2010

The City of Kansas City, Mo., Aviation Department announced today that Kansas City, Kan.-based Jet Midwest, will sign leases to consolidate its multiple U.S. locations and relocate to the KCI Overhaul Base at Kansas City International Airport.

Beginning in early 2009 American Airlines has returned to the City more than one million square feet of the KCI Overhaul Base facility. American currently leases 740,000 square feet of the facility and has announced plans to wind down operations by September 2010. The base had been operated by TWA, which began operating the maintenance base in 1954.

Founded in 1997, Jet Midwest, Inc. is a commercial aircraft supplier that provides parts, engines and aircraft sales, leasing and management. It also has operated aircraft and engine maintenance repair and overhaul in Arizona, New Mexico and California. Airline customers include Air Canada, American, British Airways, Continental, Delta, FedEx, KLM, Mexicana, and others.

The effort to bring Jet Midwest to KCI and Kansas City, Missouri, and 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.

“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 and we are committed to putting that space and Kansas Citians back to work.”

Jet Midwest wishes to lease from the City a portion of the KCI Overhaul Base in order to operate an engine and aircraft maintenance and repair operation, among other approved ancillary functions.
Pending City Council approval there will be two leases beginning April 15, 2010 for space within the base known as Building 1 (600,000 sq. ft. narrow body hangar) and Building 2 (555,000 sq. ft. engine repair shop). Building 2 has a 10-year initial term with two possible 10-year renewals.
There is an initial six-month lease on Building 1 for one hangar bay with the ability to increase the company’s space needs up to a two-year period.

In the near term, Jet Midwest will apply to the Federal Aviation Administration for its approval to become a Certificated 14 CFR Part 145 Repair Station that has a Class 3 & 4 rating for Airframe and Class 3 rating for Power Plant. This process can take up to 18 months. If Jet Midwest receives this certification they have the option to lease the entire Building 1 with an initial 10-year term with two possible 10-year renewals.

The City expects that approximately 500 new jobs will be added by Jet Midwest and its related companies and affiliated partners at the base over a five-year period.

“This marks another major milestone in the City’s ongoing strategy to bring highly skilled jobs to Kansas City,” said Mayor Pro Tem Bill Skaggs. “Landing Jet Midwest so quickly after American returned some of the space at the base is a major win for our residents."

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 and assembly 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. KCI contributes $5.5 billion to the area economy annually and provides more than 60,000 jobs.

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. Follow us on Twitter and become a fan on Facebook.

For more information, contact Joe McBride, Aviation Department, (816) 243-3164.

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