Dfw Airport Offers Carrier Incentives

[WorldTraveler]

Press Release Source: DFW International Airport


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.

http://biz.yahoo.com/prnews/050106/dath037_1.html

http://biz.yahoo.com/prnews/050106/dath036_1.html

 

[LD max]

Who's it gonna be?
SWA, Airtran or Jetblue?

 

[LaBradford22]

Or, read another way, DFW airport uses (predominantly) AA's PFCs, landing fees, and facility rent to subsidize some LCC coming in and helping to put AA out of business. Is this a f**ked up industry or what?

 

[jimntx]

Agreed. The news reports here in Dallas have quoted the Airport Authority people as specifically seeking an LCC. AA should demand and be granted a break on their costs at DFW.

As far as who...
I think SWA would come into DFW only as a last resort. They are determined to break the Wright Amendment. By the same token as above, if the Wright Amendment is repealed then AA's limitation to only 3 gates (which can only be used as office space) at DAL should be eliminated. And, all airlines should be granted some of SWA's landing slots and gates at DAL. If we are going to have "competition" then let's make sure that it is true competition. If other airlines are granted permission to fly long-distance from DAL, but have no gate space or landing slots, then it won't be "competition." What's sauce for the goose is sauce for the gander.

 

[eolesen]

Take the DFW incentive with a grain of salt... OK, a bag of salt.... The only way to qualify for the free rent deal is to pick up at least 10 gates on a five year lease, and commit to flying 70% of the departures to markets not already served by the carrier.

10 gates works out to 40 or 50 flights at a minimum, which is why I don't see anyone taking DFW up on the deal. Over the lease term, it works out to a 20% discount, but it has too many strings attached.

I see it a bit differently -- DFW couldn't find anyone to pay for the gates, so this get some publicity, and also gives them fuel for the argument that DFW still needs protection via the Wright Amendment.