Kim777fan From United States of America, joined Aug 2004, 510 posts, RR: 1
Reply 1, posted (9 years 6 months 3 weeks 6 days 1 hour ago) and read 1695 times:
The downside is I can just hear AA now saying ... "Whoa.... We've been paying our full fare all along and were a HUGE part in making this airport what it is, and now you're letting our competition come in for NOTHING????"
Quickmover From United States of America, joined Mar 2004, 2490 posts, RR: 0
Reply 4, posted (9 years 6 months 3 weeks 6 days ago) and read 1634 times:
"AirTran ought to jump on this big time and move forward with its always-promised DFW expansion."
I think this is probably the biggest sign yet that nothing is going to happen with FL at DFW. They probably already offered a deal to FL or else they wouldn't be making this announcement. I'm thinking they are waiting for some type of development with USAir. Maybe DCA? Although get in line for that one. It won't be cheap and without competing bids. I hope they handle it better than MDW.
ExFATboy From United States of America, joined Jul 2003, 2974 posts, RR: 9
Reply 8, posted (9 years 6 months 3 weeks 5 days 23 hours ago) and read 1499 times:
Actually, why should AA complain? If DFW's revenues drop, they'll have to look to existing tenants (mainly AA) to make up the shortfall - I can't see DFW's expense base dropping that much by the gates being idle, most of their expenses are fixed and bond debt still has to be serviced.
Also, AA could benefit by this taking a little pressure off of the "open up Love Field" movement. Perhaps WN should reconsider fighting the Wright Amendment and get in on this deal?
UALFAson From United States of America, joined Mar 2004, 700 posts, RR: 4
Reply 11, posted (9 years 6 months 3 weeks 5 days 23 hours ago) and read 1462 times:
I'm with Quickmover. This has got to be pure desperation on the part of DFW.
Besides FL, what airline could possibly meet those requirements? Ten gates till 2009? Indy Air is in a fight for survival; they can't open a huge new base/hub in a city and region where they have NO brand awareness or history. Spirit doesn't have the airplanes. JetBlue might be a possibility, but I'm not feelin' it.
Instead of trying to get another airline to build a hub at DFW and go head-to-head with AA, DFW should concentrate on trying to get existing carriers to slightly expand service to fill the DL gap. I know they're the perrenial 3rd place to ORD and ATL in terms of pax numbers, departure numbers, and 2-airline hub airport status, but let's be realistic.
Although given my track record with predictions, expect a press release from JetBlue this afternoon...
"We hope you've enjoyed flying with us as much as we've enjoyed taking you for a ride."
Midway2airtran From United States of America, joined Jul 2003, 864 posts, RR: 2
Reply 12, posted (9 years 6 months 3 weeks 5 days 23 hours ago) and read 1387 times:
Just to make it easier for those who hate to link back and forth.....
DFW International Airport Announces Major Incentive Package to Attract New Air Service and Expand Travel Choices for Customers
Thursday January 6, 11:37 am ET
Offer Includes Free Rent and Marketing Dollars for Terminal E Gates
DFW INTERNATIONAL AIRPORT, Texas, Jan. 6 /PRNewswire/ -- 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.
About DFW International Airport
Located halfway between the cities of Dallas and Fort Worth, Texas, DFW International Airport is the world's third-busiest, offering nearly 2,000 flights per day and serving 57 million passengers a year. Currently, DFW International Airport provides non-stop service to 136 domestic and 32 international destinations worldwide. For the latest news, real-time flight information, parking availability or further details regarding the many services provided at DFW International Airport, log on to http://www.dfwairport.com .
Midway2airtran From United States of America, joined Jul 2003, 864 posts, RR: 2
Reply 14, posted (9 years 6 months 3 weeks 5 days 22 hours ago) and read 1362 times:
Really generous offer by DFW, but it still holds quite a commitment; especially at 10 gates, that's practically a hub, especially the way LCC's utilize their gates! I wonder if airlines can cooperatively join together to get the break; say FL and B6 together just for example? Would love to see AirTran take advantage of this, but I would think it may strain their resources quite a bit to fullfill the requirements while continuing their normal expansion plan.
EA CO AS From United States of America, joined Nov 2001, 13518 posts, RR: 62
Reply 17, posted (9 years 6 months 3 weeks 5 days 22 hours ago) and read 1332 times:
I can all but guarantee that right now the executives at Alaska Airlines' Angle Lake HQ building in SEA are making phone calls to DFW officials.
EDIT- Well, maybe not - seeing as further in the article it looks like DFW is looking for a minimum 10 gate commitment there. AS would need TWO gates, maximum - and would likely use codeshare partner AA for all the groundhandling anyway.
[Edited 2005-01-06 20:28:01]
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
TOLtommy From United States of America, joined Dec 2003, 3288 posts, RR: 4
Reply 18, posted (9 years 6 months 3 weeks 5 days 22 hours ago) and read 1318 times:
10 gates means quite a significant committment financially. Free rent isn't going to be enough to get a B6 or NK committment. Wonder if they thought about offering a similar package to DL before they pulled out?
Drerx7 From United States of America, joined Jun 2000, 5162 posts, RR: 8
Reply 20, posted (9 years 6 months 3 weeks 5 days 22 hours ago) and read 1303 times:
That would be a sight--Alaska with at Hub at DFW. Texas is a tough market for any carrier to hub; we've got American, Continental, and Southwest based in this region. What happens if they can't get a carrier to commit? My guess is they'll have to sweeten the deal.