UNITED AIRLINES SIGNS AGREEMENT WITH INDIANA
OFFICIALS ON MAINTENANCE FACILITY
CHICAGO, Nov. 21 /PRNewswire/ -- United Airlines signed a comprehensive agreement with Indiana officials today, clearing the way for locating United's new maintenance facility in Indianapolis.
United Chairman and President Stephen M. Wolf, speaking at a signing ceremony with Indiana Gov. Evan Bayh, Indianapolis Mayor William H. Hudnut III and others, said, "In working with the governor and the mayor, during the selection process as well as the development of this agreement, we have seen a great partnership forged between Indiana, Indianapolis and United Airlines.
"We expect this alliance to grow even stronger, as we break ground for and build the new facility, and as tangible economic benefits begin to accrue to the region," Wolf said.
Today's agreement formalizes Indianapolis' selection as the maintenance site, a decision announced earlier by United. It outlines pledges by United for a capital investment of at least $800 million and the creation of 6,300 new jobs. It commits the state, city, Indianapolis Airport Authority and Hendricks County, the county adjacent to the airport, to deliver the site by July 31, 1992, and to produce a financial-incentive package in grants, bond issues and other incentives totaling $297.7 million to be applied to the cost of the project.
Construction of the state-of-the-art maintenance facility, expected to employ several thousand workers, is scheduled to begin in August 1992, following eight months of planning and design. Occupancy of the facility is forecast for late 1994.
"The economic impact of this project is tremendous," said Gov. Bayh. "We estimate benefits will exceed $6.5 billion over the next 10 years."
The Indianapolis facility has been earmarked to maintain United's fast-growing fleet of Boeing 737s. United currently operates more Boeing 737 aircraft -- 191 -- than any other aircraft in its fleet. The airline plans to maintain its reliance on that fleet type, and build its Boeing 737 fleet to more than 300 aircraft by the mid-1990s.
United has a total of 482 aircraft in its fleet, with 237 aircraft on order through 1998, and 266 on option through the end of the century.
To accommodate its expansion, United plans to use the 300-acre site at Indianapolis International Airport to build one of the world's largest and most modern aircraft maintenance facilities. The facility will house 3 million square feet under roof for hangar capacity for 15 aircraft dock positions, an engine repair facility and buildings for spare parts, ground equipment maintenance, technical support and administrative functions.
United's selection of Indianapolis culminated an intensive two-year search for a maintenance site, in which four finalists, and ultimately, Indianapolis, emerged from more than 90 candidates.
"The competition was extremely close," Wolf said, in announcing the winning city. "But in the final analysis, Indianapolis was selected as the best overall proposal."
/CONTACT: Lynn Martenstein, 708-952-4933; Joe Hopkins 708-952-5770, or at night, 708-952-4088; or Ann Thoma, 708-952-7501, all of United Airlines/
(UAL) CO: United Airlines ST: Illinois, Indiana IN: AIR SU: SM -- NY099 -- 6082 11/21/91 16:52 EST