DFW International Airport Announces Major Incentive Package To Attract New Air Service And Expand Travel Choices For Customers
Offer Includes Free Rent and Marketing Dollars for Terminal E Gates
DFW INTERNATIONAL AIRPORT (January 6, 2005) – DFW International Airport, the world’s third-busiest, announced today a multi-million dollar incentive and stimulus package that will be offered to all major U.S. air carriers which initiate or expand service at the Airport. The plan includes free rent in Terminal E for one year and up to $22M in other financial aid.
The Airport Board voted unanimously today to approve the incentive package. The Airport is moving aggressively to find a new tenant or expand service by existing carriers following the decision last year by Delta Airlines to “dehub” its DFW operations. DFW announced earlier today that it had secured 24 of Delta’s 28 gates and the new incentive package is being offered to fill those gates and create new flying choices for North Texas.
“This is an outstanding financial package and an unprecedented opportunity for a carrier to provide new or expanded service in our very strong Dallas-Fort Worth travel market,” said Max Wells, Chairman of the DFW Airport Board. “It is a bold initiative that signals the Airport will continue to compete aggressively to bring more choices to our customers. And in today’s airline market, it’s a great business deal and a win-win for the Airport, our customers and the carrier.”
Mr. Wells also praised American Airlines for its commitment to lease an additional four gates in Terminal B as the airline expands service from North Texas. Last September, American Airlines made the announcement of 90 additional daily departures from DFW starting in 2005.
The Terminal E Leasing and Air Service Incentive Program is based on a carrier agreeing to lease from 10 to 22 gates in Terminal E. To be eligible for the package, a carrier must agree to lease a minimum of 10 gates in the first year of operation and commit to this level of service through 2009.
The carrier would also be required to meet certain departure levels, based on the number of gates leased, with at least 70% of new seats dedicated to markets listed in DFW's Top 50 destinations and currently not served by the airline from DFW.
"This is an exceptional opportunity for a carrier to serve the region and do it with virtually no start-up costs,” says Dallas Mayor Laura Miller. “I strongly support our board's quick response to assure the continued financial stability of DFW."
In return for the agreement to lease 10-22 gates in Terminal E, DFW guarantees free terminal rent to the carrier for one year, and the Airport will purchase all required ground service equipment and provide it free of charge for the first year. The Airport will also make any necessary facility improvements to Terminal E, with a minimum investment of $4M and up to $6M if all 22 gates are leased. Finally, the Airport will bolster cooperative marketing funds under its Carrier Support Program for new service previously unserved by the carrier from DFW, with up to $1M a year in eligible funds.
In total, a carrier would be eligible for up to $12.2M in assistance for a 10-gate operation, while a 22-gate operation would be eligible for an estimated $22.2M.
"More choices and more service – that’s good for our passengers,” said Fort Worth Mayor Mike Moncrief. “This is a great deal to motivate an airline to come here or expand service here. I would also like to thank American Airlines for their continued support of DFW and North Texas by agreeing to lease additional gates in Terminal B as it expands service from DFW."
"It is very clear to business and community leaders that DFW International Airport is the economic engine of North Texas and must remain strong for our region to continue to grow and attract new international business and tourism," said Dan S. Petty, President/CEO of the North Texas Commission, a regional non-profit consortium of business and economic development entities in the North Texas region. "It's the best of all worlds for a carrier wanting to build a significant presence and for travelers wanting more flight choices at competitive prices."
The Airport will pay for the incentive package by using its discretionary funds or other authorized and eligible bond funds that may be available.
The incentive package will be open to any qualified U.S. carrier and will be formally sent to more than 40 airlines today.
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