American Seeks $21.25 Million Tax Incentive for New Corporate HQ
Erica Berardi November 04, 2015
American Airlines hopes it new corporate campus brings big tax breaks.
Fort Worth-based American Airlines is looking for a 15-year, $21.25 million tax incentive from the city’s council for its planned development of a $350 million corporate campus, the Fort Worth Star-Telegram reported Tuesday.
The Texas newspaper also reported that American is asking the city to nominate existing facilities, including its current, Fort Worth headquarter buildings, for the Texas Enterprise Zone program. If the council approves American’s request, it would put another $3.75 million in refunds on state sales and use taxes in American’s pocket.
The City Council of Fort Worth is expected to vote on November 10.
The proposal will require American to invest at least $200 million in a planned four-building campus to be built by Dec. 31, 2019. The airline must also spend $50 million with Fort Worth-based companies – at least $25 million of which must be spent with area minority and women-owned businesses.
American plans to start construction next spring and open the new campus is 2018. In October, Dallas/Fort Worth International Airport (DFW) approved a lease extension for American that allows the airline to move forward with its headquarters plans.
DFW is American’s largest hub, which operates 800 daily flights to nearly 200 destinations.
American Airlines Group is the holding company for American Airlines, US Airways, American Eagle and US Airways Express – together, they operate 6,700 flights per day to more than 330 destinations in 54 countries.
DFW is the third busiest airport in the world and is a major contributor to North Texas’ economy. In October, DFW Chief Executive Officer Sean Donohue cited a study that showed the airport delivers $37 billion dollars in annual economic impact for the region. The study, by the Perryman Group, said DFW supports 228,000 area jobs with an associated payroll of $12.5 billion annually. DFW hosts 1,850 flights a day and serves 62 million customers a year. DFW provides nonstop service to 149 domestic and 55 international destinations.
[Photo: American Airlines]
Oh. Love it when private firms get government subsidies. So, the 3 U.S. legacy carriers bitch that the Gulf governments are helping fund the carriers. Now the taxpayers in the DFW area are going to subsidize AA. So, funny.
Government subsidy? Neah, that's what the Arab airlines do. We Americans only want to pay a little less tax.
Isn't this asking for government subsidies? The hypocrisy...