Mobile Lands Airbus Assembly Plant Contract (with Timeline)

Jul 2nd, 2012

The Arthur Outlaw Mobile Convention Center was the setting over a year ago when Airbus/EADS lost its bid to Boeing to build Air Force refueling tankers.

Then, in the midst of local leaders and the media assembled in the downtown facility in the aftermath of the decision, Mobile Mayor Sam Jones proclaimed, “We are disappointed, but not discouraged.”

“While they won’t be building the Air Force refueling tanker (in Mobile), there’s still a chance EADS could build something in Mobile.” said Mayor Sam Jones in 2011.

Today, Jones’ proclamation has become a reality with Airbus/EADS announcing its selection of Mobile as the site for a manufacturing facility to assemble the A320neo aircraft at Brookley Aeroplex, a move that will create over 1,000 jobs for the local workforce.

The moment the news settled in 2011 on the refueling tankers, the mayor worked with other local and state leaders - well into the night - to keep the city, county and state incentive packages in place. The incentive packages were needed to give the city, county and state an opportunity to explore the feasibility of bringing an Airbus/EADS assembly plant to Mobile.

“It has been a long road and a lot of work, but we’re elated to bring this project to reality in Mobile,” said Jones. “Mobile has a winning team – city, county, state, national and business leaders who have put a lot of energy and dedication into this project. Their efforts have resulted in a victory for our city – today and well into the future. Ours is a city of great, unlimited opportunities.”

Jones said Mobile has built a strong business and personal relationship with top Airbus and EADS executives over its seven-year quest to land an aircraft manufacturing facility. “They have shown confidence in our city and state,” he added. “We stand ready to welcome them because their decision to build a manufacturing plant here will be a tremendous boost to our local economy.”

As the site for Airbus/EADS first U.S. manufacturing facility, Jones said, “This will be the catalyst that will further strengthen Mobile’s foundation for the future.

“There is no doubt that we’ll see an influx of suppliers in the aerospace industry moving to our city and the region,” he said. “This will create even more construction and manufacturing jobs for Mobile. It will also have a positive impact on the city’s housing market.”

Mobile’s 7-Year Quest To Build Airplanes:

 June 22, 2005 - EADS selects Mobile’s Brookley Field for a proposed $600 million aircraft assembly plant;

 September 7, 2005 - Northrop Grumman Corp. joins EADS in bidding for the Air Force tanker contract;

 February 29, 2008 - The Air Force awards a $40 billion contract for 179 tankers to the Northrop-EADS team;

 June 18, 2008 - The Government Accountability Office upholds a Boeing protest, saying there were significant errors made by the Air Force;

 September 10, 2008 - Defense Secretary Robert Gates cancels the Northrop Tanker contract;

 December 2, 2009 - Northrop refuses to submit a second bid in competition unless the Air Force makes changes to the draft RFP;

 March 8, 2010 - Northrop drops out of competition;

 April 20, 2010 - EADS competes alone with Boeing;

 July 8, 2010 - EADS submits bid to Air Force;

 February 24, 2011 - Boeing is selected for the Air Force Refueling Tanker contract;

 February 24, 2011 - Mayor convenes a meeting at downtown hotel to discuss future opportunities with EADS;

 March 16, 2011 - Mobile’s local team – Gov. Robert Bentley, Mayor Jones, (then president) Commissioner Merceria Ludgood and Mobile Airport Authority Chairman Richard Davis sends a letter to EADS CEO Louis Gallois and Thomas Enders, President/CEO informing them that the Mobile team had agreed to hold its incentive options open to support future options;

 May 6, 2011 - Mayor Jones sends a letter to Gallois and Enders reaffirming Alabama and Mobile’s offer to assist EADS and Airbus in establishing a greater presence in North American;

 July 25, 2011 - Gov. Bentley, Mayor Jones, Connie Hudson (President of the Mobile County Commission) and MAA Chairman Davis sends a letter to the Board of Directors of EADS extending the area’s willingness to participate in fulfilling the company’s production commitments for the A320 and A320NEO;

 July 2, 2012 - Airbus announces plans to build A320 aircrafts at Mobile’s Brookley Aeroplex, creating over 1,000 jobs and becoming the company’s first production facility in the U.S.