DFW International Airport’s Industry Leading Air Service Incentive Program Provides Millions For New Passenger and Cargo Service
North Texas economy can net up to $350 million annually from one new daily international passenger flight; Airport aggressively seeks new service
DFW INTERNATIONAL AIRPORT (May 4, 2006) – The DFW International Airport Board of Directors today unanimously approved an expanded Air Service Incentive Program to entice new international passenger, international cargo and domestic passenger service. The new program will be capped at $7 million per year and $20 million through December 2009.
“This is a bold effort to bring new service to the citizens of North Texas and will help drive more business and leisure travel for our great state and community,” said Jan Collmer, Chairman of the DFW International Airport Board. “Imagine new nonstop service to Hong Kong, Beijing, Madrid, Dublin, Bogotá, and Rio de Janeiro. DFW has great facilities with our outstanding new International Terminal D, Grand Hyatt and Skylink. We are telling the world ‘we want you here.’ It’s good business.”
The new program offers incentives for new international passenger, international cargo, and domestic passenger service, including landing fee rebates and marketing support. DFW announced its initial Carrier Support Program in September 1999 and the results have been impressive, contributing to new service from Korean Air to Seoul, new American Airlines service to Zurich, new American Eagle service to Torreon, Mexico, and new AirTran Airways service to Chicago.
“New daily air service for a foreign flag airline between DFW and a destination in Europe, Asia, South America, or Australia could see a regional impact of up to $350 million annually,” said Kevin Cox, chief operating officer at DFW. “Startup costs for airlines to begin new service are substantial and any effort we can make to lower the initial outlay of cash helps carriers decide where to invest and where to place new aircraft. DFW competes with airports around the globe for new service and we believe that this will greatly help airlines make the decision to fly to DFW.”
DFW is a hub of competition and options that offers North Texas business and leisure travelers 21 passenger airlines, 131 domestic destinations and 36 international destinations. The Airport has targeted new markets in Europe, Asia, South Pacific and South America to expand international service. And as the world’s best cargo airport -- recently voted by vendors in Air Cargo World and readers of Air Cargo News -- DFW continues to add new international air cargo service that bolsters the North Texas economy and that may ultimately lead to new passenger service.
“The new Air Service Incentive Program also allows us to partner with current DFW carriers to market existing air service routes that need additional support,” said Joe Lopano, executive vice president of marketing and terminal management. “The objective is to respond to changing market conditions and help provide carriers with what they need to succeed at DFW Airport. The program pays for itself very quickly.”
The new Air Service Incentive Program makes several key improvements over the existing two programs. The new program includes rebated landing fees, marketing support for service launch activities and marketing funds for new entrant carriers to promote their brands. The most impressive improvement would be the support of a new daily international wide-body passenger flight with $1.4 million in marketing support and landing fee rebates, versus $250,000 in the current program.
In addition, DFW will now offer landing fee rebates, a first for the Airport. Those rebates become more significant as aircraft size increases from a regional jet to a wide-body. In addition, DFW will no longer require a matching component to receive marketing funds and will instead reimburse carriers for approved marketing activities without requiring the airline to pay for half of the cost.