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DfwRevolution
Topic Author
Posts: 9310
Joined: Sat Jan 09, 2010 7:31 pm

DFW (desperatly) Wants An LCC

Fri Jan 07, 2005 9:10 am

News sources are reporting that the DFW Airport Authority board are willing to provide one year of free rent to an LCC willing to fill the 24 gates being vacated by Delta Airlines. In addition, the package includes a $22 million USD subsidy. Combine with the free rent, I assume this adds up to a very handsome sum!!

Interesting that (at the same time) Wright Ammendment discussions with AA were occuring at Dallas City Hall.... wonder if WN or B6 heard  Big grin

http://press.arrivenet.com/bus/article.php/554010.html

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.
 
CRPilot
Posts: 298
Joined: Tue Nov 09, 2004 8:37 am

RE: DFW (desperatly) Wants An LCC

Fri Jan 07, 2005 9:11 am

It's long shot, but what do you say about Jetblue?
 
WF2BNN
Posts: 77
Joined: Fri Dec 17, 2004 8:33 am

RE: DFW (desperatly) Wants An LCC

Fri Jan 07, 2005 9:17 am

B6 Baby! They will jump on this thing like the goldmine it is  Big thumbs up

WF2BNN
 
DL WIDGET HEAD
Posts: 1469
Joined: Wed Apr 12, 2000 8:18 am

RE: DFW (desperatly) Wants An LCC

Fri Jan 07, 2005 9:20 am

How do you infer from what you posted that DFW desperately wants an LCC? It looks like the invitation is opened to any airline. Besides, they already have LCC's serving the airport. Getting an LCC is nothing new.

[Edited 2005-01-07 01:23:51]
 
milemaster
Posts: 1071
Joined: Tue Mar 20, 2001 10:19 am

RE: DFW (desperatly) Wants An LCC

Fri Jan 07, 2005 9:22 am

Give it up folks, Even if Jetblue moved it's entire operation to DFW the 24 gates would still be more than they could ever fill. I'm sure the terms are conditional that all 24 gates be utilized.
 
jerion
Posts: 230
Joined: Thu Jun 17, 2004 12:59 am

RE: DFW (desperatly) Wants An LCC

Fri Jan 07, 2005 9:27 am

AirTran can build.
Hopefully DFW will work out for them.

MDW didn't.
 
DfwRevolution
Topic Author
Posts: 9310
Joined: Sat Jan 09, 2010 7:31 pm

RE: DFW (desperatly) Wants An LCC

Fri Jan 07, 2005 9:29 am

they already have LCC's serving the airport. Getting an LCC is nothing new

The LCC selection is incredibly limited. FL has three gates, HP has two, Frontier has one, and while ATA has one, who knows how long they will remain in DFW. That's a grand total of 7 gates allocated to LCC's versus AA's fortress of 90+ gates.

How do you infer from what you posted that DFW deparately wants an LCC? It looks like the invitation is opned to any airline

This particular article does not mention LCCs, but I heard about this from the evening news. That broadcast was of an afternoon press confrence by Mr. Cox who specifically mentioned LCCs were the target of the move. You can also infer that -

  • DFW as an airport has very high fares, and is one of the only major airports to see fares rise post-deregulation. LCC's stand to create the most downward pressure on fares

  • One LCC in particular shot-down DFW as a destination and instead began legal and political lobbying that DFW obviously views as unacceptable

  • Brining in a different LCC, or making WN take a second look, could potentially declaw the (justified) arguement for a two-airport city. The W.A. has more lives than US Airways, and IMO it's easily possible it will weather the current storm.

  • The economic impact of DL's departure are huge. DFW would like to see those gates filled quickly. No non-LCC airline is in the position to fill 24 gates in short order. LCC's like B6, FL, and WN could. Sure DFW won't have that revenue for a year, but few airlines move in a city with plans of quickly leaving


  • [Edited 2005-01-07 01:38:33]
     
    DL WIDGET HEAD
    Posts: 1469
    Joined: Wed Apr 12, 2000 8:18 am

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 9:36 am

    Don't forget about SunCountry. They are listed on DFW's website.

    [Edited 2005-01-07 01:39:16]
     
    UALFAson
    Posts: 1165
    Joined: Sun Mar 14, 2004 2:41 pm

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 9:49 am

    There is another thread running about the very same topic, but I'm too lazy to look it up right now.

    What you either left out or wasn't included in this article is the requirement that, to take advantage of this offer, an airline would have to lease AT LEAST 10 gates and keep them through 2009, as well as meet other requirements in terms of flight frequency and number of markets served.

    With today's airline industry environment, there are very, very few carriers who could meet these stipulations, or, for that matter, would even want to. I think you're right that DFW is desperate, to the point of trying to get publicity even if their offer is completely ridiculous.
     
    DfwRevolution
    Topic Author
    Posts: 9310
    Joined: Sat Jan 09, 2010 7:31 pm

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 9:51 am

    There is another thread running about the very same topic, but I'm too lazy to look it up right now.

    Gahh I am relying far too much on the automated search function. 2nd time this week...
     
    DL WIDGET HEAD
    Posts: 1469
    Joined: Wed Apr 12, 2000 8:18 am

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 9:54 am

    I think they're also desperate because what airline will be willing to face the full might of AA from a start-up point of view?
     
    CRPilot
    Posts: 298
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    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 9:56 am

    "With today's airline industry environment, there are very, very few carriers who could meet these stipulations"

    Back to square one B6 or FL.
     
    ConcordeBoy
    Posts: 16852
    Joined: Thu Feb 01, 2001 8:04 am

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 9:56 am

    I'm sure the terms are conditional that all 24 gates be utilized.

    ...and you can be equally sure that you're wrong  Laugh out loud


    The stipulations are a commitment to ten gates effective immediately until 2009, also, the airline must serve a given percentage of DFW's top 50 markets.
     
    FA4B6
    Posts: 1078
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    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 9:59 am

    I hope its B6!! Well of course, they're my airline. But 2 JFK-DFW's to start, maybe an IAD, maybe a BOS and LGB. That be fantastic. Its time we served a city in between MSY and DEN lol
     
    Boeing7E7
    Posts: 5512
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    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 10:31 am

    DFW just wants a carrier...


    ANY CARRIER!
     
    jetblueatjfk
    Posts: 1556
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    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 10:48 am

    Even if B6 came they'd probably only use MAX 2 to 3 Gates there. They don't even have 24 Gates at JFK and they aren't going to open a hub in DFW. They will have to accept a good amount of airlines to fill those Gates. Maybe DFW will be the new B6 destination from BOS that it announced tomorrow. Hopefully DFW will have some Blue. Just as FA4B6 said "Its time we served a city in between MSY and DEN lol". If they go to DFW they'll have a network that involves most parts of the country. At least flights to JFK and then maybe LGB, IAD and BOS.

    jetBlueAtJFK
     
    tnsaf
    Posts: 122
    Joined: Sat Oct 30, 2004 10:58 pm

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 12:27 pm

    They are not really giving anything away. If the gates remain empty you earn nothing. Nothing from the landing fees, terminal fees, jet bridge fees, restaurants, stores, facility fees and parking.

    So, you waive rent and provide some other concessions for a year. What has changed if the gates had remained empty? What does DFW lose? Nothing. They might actually gain from some of the other revenues.

    Lotta smoke, no fire.
     
    nomorerjs
    Posts: 907
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    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 12:44 pm

    Who wants to compete with AA at DFW? Look at the history of LCCs that entered the market! AA will do what it takes to protect their home turf. Just ask airlines that tried and are no longer in business (Vanguard, etc.).
     
    CRPilot
    Posts: 298
    Joined: Tue Nov 09, 2004 8:37 am

    RE: DFW (desperately) Wants An LCC

    Fri Jan 07, 2005 12:58 pm

    "Who wants to compete with AA at DFW? Look at the history of LCCs that entered the market!"

    That was at a point when AA was healthy. AA cannot afford to enter a fare war with an LCC right now.
     
    COAMiG29
    Posts: 500
    Joined: Tue Aug 03, 2004 10:30 am

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 1:04 pm

    what about co, co has some gates at dfw and with how they are expanding it wouldent hurt.
     
    N839MH
    Posts: 304
    Joined: Tue Mar 27, 2001 4:05 pm

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 1:05 pm

    Braniff International? Just joking!

    What if Song were to come to DFW this spring, and take over all the
    "new" Delta flights i.e ATL, SLC & CVG....then Delta would leave all
    together and Song will be the new airline.

    10 gates, take the money, Delta would probably still have been here by 2009
    anyhow, just make it the first "all Song" hub!

    DFW to ATL, CVG, SLC, JFK, FLL, MCO, LAS, LAX, SFO.....it could work,
    it's not like Delta never flew to these cities anyhow.

    Who knows what February will bring with Songs new routes?
     
    NWDC10
    Posts: 904
    Joined: Sat Dec 20, 2003 10:15 am

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 1:18 pm

    I still want to see NW create a hub in DFW! Robert NWDC10
     
    nomorerjs
    Posts: 907
    Joined: Wed Sep 01, 2004 10:24 am

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 1:20 pm

    CRPilot, I agree with you, but AA will do whatever it takes to defend DFW, even with the new fare strucure. They may not be in the best cash flow situation (s---, more cash out than cash in), but DFW is their baby and they will protect it. Look at the lengths they are going through to keep the Wrong Amendment in place! AA likes it's soon to be monopoly operations at DFW.
     
    JayDavis
    Posts: 1870
    Joined: Wed Jan 10, 2001 1:09 pm

    RE: DFW (desperatly) Wants An LCC

    Fri Jan 07, 2005 1:32 pm

    FL does NOT have the smarts to make DFW a hub.

    They are soooooo far behind the times on good customer service it isn't even funny. They screwed the pooch when it came to the ATA deal, clearly WN just out-bid them...........I'm not too impressed with their upper management either.

    I'd love to see B6 come in here, but I doubt it.

    NW, forget about it............

    One other thing everyone needs to think about, KE "could" pull out of DFW and move that flight down to IAH after DL pulls out of DFW. KE will not have very much feed for their flight out of DFW from the SkyTeam partners. NW serves Korea and Asia obviously, so I don't see any NW connections at DFW to KE, DL will have flights to DFW from CVG, SLC, and ATL. KE already serves ATL, you can get to LAX from SLC on DL and connect to a KE flight.......yet you've got a TON of CO flights to/from IAH which could feed the KE flight.


    Jay


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