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American Airlines, Rolls Royce may pay Fort Worth $2.2 million to terminate lease at Alliance

American and Rolls Royce closed the engine repair facility at Alliance Airport, called Texas Aero Engine Services Limited, earlier this year. (FWST/Tom Pennington)
American and Rolls Royce closed the engine repair facility at Alliance Airport, called Texas Aero Engine Services Limited, earlier this year. (FWST/Tom Pennington) FWST/Tom Pennington

American Airlines and Rolls Royce may pay Fort Worth a $2.2 million fee to terminate its lease at an engine repair facility at Alliance Airport.

The Fort Worth City Council unanimously approved a resolution on Tuesday, allowing the city manager to negotiate an early lease termination agreement for the Texas Aero Engine Services Limited engine repair facility at Alliance Airport. TAESL is a 50-50 joint venture between American and Rolls Royce and was created in 1998.

The resolution also directed the city manager to include a $2.2 million early lease termination payment and the conditions that TAESL will remove all equipment and make any necessary repairs to the facility.

The companies decided to shut down the facility last fall and the last engine repairs at TAESL were completed earlier this year. About 600 workers were affected and were offered positions within American and Rolls Royce.

American spokesman Josh Freed confirmed the Fort Worth-based carrier was in lease termination negotiations with the city.

“TAESL is entering negotiations with the City for an early lease termination of the TAESL premises, targeted for September 2016,” Freed said.

According to the resolution, TAESL plans to sell the equipment inside the facility by auction by April 1. The lease was originally scheduled to run through 2025.

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