Alcoa-SIE Cargo Conversions Signs Agreement With American Airlines to Convert 757-200 to Cargo Configurations

( SIMI VALLEY, Calif. - July 17, 2006 ) - Alcoa Inc. (NYSE:AA) announced today an agreement with American Airlines (NYSE:AMR)to perform cargo conversions and maintenance on 757-200 aircraft for its Alcoa-SIE Cargo Conversions (ASCC) business unit. The addition of American Airlines Maintenance Services adds tremendous capacity, experience and expertise to the ASCC 757 freighter conversion program. ASCC will have initial capacity to convert aircraft in dedicated hangar bays with additional bays available for future growth of the program. Crew training and planning between ASCC and American have been underway for months to ensure a smooth introduction of production at the facility. "Due to the demand coming from the market for our 14Plus conversion we needed to add capacity to our program," said Gary Batey, President of ASCC. "This agreement not only gives us basically unlimited capacity in terms of hangar space, it also brings in the most experienced aircraft maintenance technicians for working the 757 airframe that can be found in the world. Combine that experience with American's expertise in process improvement and we are confident that we can deliver the most cost effective 757 cargo conversion available, on time and with the highest standards of quality in the industry." David Campbell, Vice President Base Maintenance, said, "The signing of the agreement between American and Alcoa-SIE Cargo Conversions (ASCC)is a natural fit for American's MRO business strategy. This program is AA Maintenance Services' first step toward creating the premier cargo aircraft maintenance business in the Americas." Campbell said American plans to complement ASCC's conversion process by offering a full range of services including, aircraft light and heavy maintenance checks, engine, component, landing gear repair and overhaul services, as well as line maintenance support. The combination of the two companies' brand recognition and reputations for providing high quality products and service offers the customer assurances no one else can match, he said.

Source: Alcoa
Date: Jul 17, 2006