AA Bankruptcy Calls Into Question Oklahoma Taxpayers' Investment

American Airlines' Tulsa maintenance base is looking at as many as 2,100 layoffs. Every single Tulsa County resident is invested in this company and some of you may not even realize it.

Tulsa County's financial commitment to American Airlines started back in 2003 and continues to 2017. The state's commitment is even deeper and goes back further.

The commitment of local taxpayers has helped prop up American Airlines for years. In 2003, Tulsa County voters approved a one penny sales tax increase for 13 years called Vision 2025.

Part of the vision was a $22 million incentives package for American Airlines.

"That was corporate welfare any way you cut it," said AA employee Dave Woodruff.

Dave Woodruff was thinking about those incentives after the layoffs announcement. American leases an 80,000 square foot hangar at Tulsa International Airport, which cost $11 million to build.

$4.3 million came from a third penny sales tax in Tulsa, nearly $6 million from the state's Opportunity Grant and another million and a half from the city of Tulsa.

"Tulsa owns the land, but American owns what's in it. A lot of that equipment should be given back or sold. That money should go back in the hands of the taxpayer," Woodruff said.

That's the idea behind a bill sponsored by Tulsa Representative Eric Proctor.

"City, county and the state have made tens of millions of dollars in commitments," Proctor said.

Representative Proctor's 'Oklahoma Job Protection Act' calls for companies to repay any city, county or state funds if jobs are transferred out of state or shipped out of the country.

In the meantime, there is no new incentives package to keep American in Tulsa. Proctor suggests action at the city level - like lowering AA's lease and utility agreements as well as landing fees at the airport.

"Every little thing we can do to save a job is what we need to be doing right now," Proctor said.

Below is a statement from the City of Tulsa in response to Rep. Proctor's statement:

The City of Tulsa and the Tulsa Metro Chamber remain committed to keep American Airlines jobs in Tulsa and will continue to meet with all parties involved to pursue best options available as the American Airlines reorganization progresses.

American Airlines has also received $32 million in payroll tax reimbursements since 1995 under the Oklahoma Quality Jobs Program.

Andrea Huguely, a spokeswoman for American Airlines says:

"We've always appreciated the support Tulsa and the surrounding communities have shown American Airlines. It's one of the reasons we've been committed to the area for more than six decades. We have fulfilled our obligations to Vision 2025 and our goal now is to provide the greatest number of jobs for the most people. Keep in mind, American Airlines contributes more than $500 million in wages and benefits to the area every year. We look forward to continuing to be good neighbors in the years ahead."

02/02/2012 Related Story: Owasso Area Businesses Worry As American Airlines Layoffs Loom