American Airlines to spend $14.6 million for St. Louis upgrades

ST. LOUIS -- American Airlines' plans to spend $14.6 million to upgrade its Lambert Airport terminals should put to rest analyst speculation about the world's largest carrier's long-term devotion to its St. Louis operations, the company said Wednesday.

"We're committed to St. Louis, and hopefully today's announcement will reflect that," Robert Cordes, a vice president with the Fort Worth, Texas-based airline, said during a Lambert news conference.

Lambert will spend an additional $7.1 million expanding security checkpoints, installing new flight-information monitors on three concourses, and connecting C and D concourses to relieve congestion behind the checkpoint. American also will move some offices to clear way for more restaurants.

Lambert long had been a hub for St. Louis-based Trans World Airlines, bought last year by American's parent AMR Corp. Wednesday's announcement came a month after American said it would cut 7,000 jobs and trim capacity by 9 percent to slash costs and better compete with low-fare carriers, having already eliminated 20,000 jobs after the September 2001 terrorist attacks.

About two weeks ago, American's chairman and chief executive Don Carty said the company needs to cut its permanent cost structure by at least $3 billion a year, or more than 15 percent, over the next several years. Carty said American would make more announcements this year about restructuring the company, which has lost $2.8 billion since the beginning of last year.

Cordes said upgrades unveiled Wednesday -- Lambert's first since the 1980s -- were modestly tweaked given American's financial struggles, giving the carrier "the biggest bang for the buck."

"American Airlines is important to St. Louis, and St. Louis is important to American Airlines," St. Louis Mayor Francis Slay said. "All of this is underscored by today's announcement."