DFW wants to be the premier airport in the global marketplace

[F4shionablecHa0s]

How much tax revenue does North Texas get for each connecting passenger? I'm guessing it is close to zero.

Taxes are collected any time a passenger lands or takes off at an airport, including connections. You could also factor in the money DFW airport itself makes, which makes things like terminal D and the skytrain possible, which means more air service, which means a better economy.

[saxman66]

Taxes are collected any time a passenger lands or takes off at an airport, including connections. You could also factor in the money DFW airport itself makes, which makes things like terminal D and the skytrain possible, which means more air service, which means a better economy.

Yeah connecting passengers provide alot of benefit besides landing fees. They spend money at the shops and restaurants inside the airport too. So that of course provides lots of support for those local business owners. Or think of the job I did to push wheelchairs for connecting passengers who gave me tips, and therefore I spent that money in the local area.

Chris

PS: I couldn't find who said AA did not make a profit in the 3rd quarter of '05. That's incorrect. AA made a profit of almost $60 million where as CO also made a $100 million profit during that quarter.

[UptownDallas]

Taxes are collected any time a passenger lands or takes off at an airport, including connections.

Could you be more specific? I'm unaware of any taxes (other than Passenger Facility Charges... PFCs... which can only be used for specific airport projects) that are charged based on passenger landings and takeoffs.

You could also factor in the money DFW airport itself makes, which makes things like terminal D and the skytrain possible, which means more air service, which means a better economy.

Airports are prohibited by federal law from acting as profit making entities. The way DFW is operated, excess revenues are returned to users (primarily American Airlines). Terminal D and the Skytrain were financed by massive airport borrowings (none of which are guaranteed by taxpayers, fortunately). At a cost of $1.7 billion (nearly $70 million per gate) Terminal D is looking more and more like a white elephant, the southern portion is nearly completely empty... with all retail tenants either struggling or failing.

It's hard to see how a massive, wasteful expenditure in an extravagant, under-utilized facility is good for the DFW economy. It's certainly not good for local businesses like LaDuni (which has already exited the facility after months of heavy losses).

[UptownDallas]

Yeah connecting passengers provide alot of benefit besides landing fees. They spend money at the shops and restaurants inside the airport too. So that of course provides lots of support for those local business owners. Or think of the job I did to push wheelchairs for connecting passengers who gave me tips, and therefore I spent that money in the local area.

The typical spend per connecting passenger is well under $4.00... compare that to the hundreds (or thousands) of dollars a passenger who actually stays for a visit spends. Many of these passengers are currently priced out of the market due to DFW's high airfares.

Also, to reiterate, neither American Airlines nor DFW Airport contribute a dime to the operations of the Dallas city government.

[AndyIvey]

The typical spend per connecting passenger is well under $4.00... compare that to the hundreds (or thousands) of dollars a passenger who actually stays for a visit spends.

Bingo! That is why I feel that the number of connecting passengers has nothing to do with an airport’s success. Only those that leave the property have any impact on the local economy.

[saxman66]

Bingo! That is why I feel that the number of connecting passengers has nothing to do with an airport’s success. Only those that leave the property have any impact on the local economy.

I'm not sure where you get this idea. Over 60% of passengers at DFW are connections. When you charge each of them a $4.50 PFC how can it not be of any benefit to the airport. For all of those passengers you need employees whom all live in the DFW area.

The typical spend per connecting passenger is well under $4.00... compare that to the hundreds (or thousands) of dollars a passenger who actually stays for a visit spends. Many of these passengers are currently priced out of the market due to DFW's high airfares.

I'm not sure where you got this number. Even it was $4, just from the fact of using the airport provides benefit no matter how indirectly it is.

Ten's of thousands of jobs at the airport are here because of the vast number of connections (including my past jobs) So to say there is no econimic benefit as rather short-sighted.

Chris

[AndyIvey]

I'm interested in how many nonresidents get off the plane, leave the airport, and come to Dallas. I'll accept that this does not take into account the jobs created by connecting flights. I will also accept that the marketign efforts of the area have a lot to do with that number... maybe more than the quality of DFW. However, I do not like using a raw passenger count as a measure of success.

[UptownDallas]

I'm not sure where you get this idea. Over 60% of passengers at DFW are connections. When you charge each of them a $4.50 PFC how can it not be of any benefit to the airport. For all of those passengers you need employees whom all live in the DFW area.

All the PFC does is fund the infrastructure that connecting passengers require. The Metroplex beyond the airport perimeter receives zero benefit.

I'm not sure where you got this number. Even it was $4, just from the fact of using the airport provides benefit no matter how indirectly it is.

Ten's of thousands of jobs at the airport are here because of the vast number of connections (including my past jobs) So to say there is no econimic benefit as rather short-sighted.

I'm not saying there is no benefit, just that the benefit is not that great. If you want some additional perspective, talk to the folks in Nashville or Raleigh/Durham. In both places, you'll find that American pulling it's hub out generated tremendous economic growth as fares plummeted and local O&D travel skyrocketed.

[FortWorthGuy]

It's hard to see how a massive, wasteful expenditure in an extravagant, under-utilized facility is good for the DFW economy. It's certainly not good for local businesses like LaDuni (which has already exited the facility after months of heavy losses).

Things will get better for DFW. I think in a couple of years DFW will be flourishing again. By then Wright should be gone and we should have more international carriers operating out of Terminal D. AA's one world partners Cathay Pacific & Quantas are my picks to start service in the near future because of their close ties to AA. The One world alliance met at DFW recently for their meeting and I am sure they got a good look at the facilities DFW has to offer.

[UptownDallas]

Things will get better for DFW. I think in a couple of years DFW will be flourishing again. By then Wright should be gone and we should have more international carriers operating out of Terminal D. AA's one world partners Cathay Pacific & Quantas are my picks to start service in the near future because of their close ties to AA. The One world alliance met at DFW recently for their meeting and I am sure they got a good look at the facilities DFW has to offer.

As it stands, however, we're presently looking at 13 vacant gates built at a total cost of $845 million and foreign carriers have been leaving DFW while building up their presence elsewhere in the U.S.

I'm surprised this hasn't become a major scandal. Think of what the Metroplex could have done with $845 million!

[F4shionablecHa0s]

As it stands, however, we're presently looking at 13 vacant gates built at a total cost of $845 million and foreign carriers have been leaving DFW while building up their presence elsewhere in the U.S.

I'm surprised this hasn't become a major scandal. Think of what the Metroplex could have done with $845 million!

What do you expect the airport to do, build exactly the number of gates required at the moment, not taking future growth into account? You sound like TXDOT.

At the time construction began, DFW was full and the growth showed no signs of slowing down. 9/11 happened, and the airport planners had two options. Leave a huge gaping hole in the ground and pay hundreds of millions of dollars to cancel contracts and remove what was built so far, or they could finish the terminal at just about the same cost.

Traffic at DFW will increase and the terminal will eventually be filled up. The terminal was an investment in DFW's future that will pay off in the years to come when we don't have to worry about the airport becoming a congested nightmare.

As far as the connection traffic not being of any benefit, why do you think it's possible for us to fly so many places nonstop? Connections. We have so many nonstop destinations at DFW because it is a massive hub. Direct air service improves the DFW economy by making it much easier to do business here. Also, thanks to the hub at DFW, the airport served over 53 million passengers last year. With an average spend of even just four dollars, that's 212 million dollars pumped into the economy.

[rantanamo]

at least we see how people would really feel if there were too many highways and lanes.

[saxman66]

All the PFC does is fund the infrastructure that connecting passengers require. The Metroplex beyond the airport perimeter receives zero benefit.

I'm not saying there is no benefit, just that the benefit is not that great. If you want some additional perspective, talk to the folks in Nashville or Raleigh/Durham. In both places, you'll find that American pulling it's hub out generated tremendous economic growth as fares plummeted and local O&D travel skyrocketed.

Are saying AA should totally dehub DFW, so it'll lower fares and create more O&D's? Nashville has lost total passengers from 2000 to 2004. Yes, Southwest has really built up Nashville as well.

But connecting passengers have HUGE benefit to us. How does a PFC not benefit the region? Anything that adds infrustructure to the airport sounds beneficial to the local economy to me. Thats another reason why we here in the area can have 12 or 14 flights a day to LAX or one flight every hour or less to Chicago. Those connecting passengers give us more choice of times and more non-stop destinations. Think of all the airline employees who are based here, that get paid by these connecting passengers, and therefore the money gets spent in our area.

Yeah I'm sure it was a big scandal....to have 13 empty gates...right

[FoUTASportscaster]

Nashville may have lost passengers, but they have more people who stay and contribute to the local economy via tourism along with buisness because of the lower fares by AA's de-hubbing. When interviewed, they said they were fearful that they would lose a lot by de-hubbing, but showed economic data that showed how their economy benefited because of AA's exit.

[Geaux Tigers]

Nashville may have lost passengers, but they have more people who stay and contribute to the local economy via tourism along with buisness because of the lower fares by AA's de-hubbing. When interviewed, they said they were fearful that they would lose a lot by de-hubbing, but showed economic data that showed how their economy benefited because of AA's exit.

I understand lower fares due to increased competition...simple economics. However, the suggestion that AA pull up stakes and dehub DFW is ridiculous. Our local economy benefits too much from all the AA employees that only have jobs due to AA's mega hub at DFW.

[FortWorthGuy]

Nashville may have lost passengers, but they have more people who stay and contribute to the local economy via tourism along with buisness because of the lower fares by AA's de-hubbing. When interviewed, they said they were fearful that they would lose a lot by de-hubbing, but showed economic data that showed how their economy benefited because of AA's exit.

DFW has more O&D passengers than Nashville. AA will not dehub at DFW but any reductions by AA at DFW will intice other carriers to pick up the slack. DFW is experiencing growth in international passengers. I expect a few foreign carriers to begin service within the next few years.

[St-T]

One thing no one has mentioned... DFW is where AA makes the most $$$.

[FortWorthGuy]

One thing no one has mentioned... DFW is where AA makes the most $$$.

Probably because everybody already knows that. Its funny how they make so much money here yet they dont have a "megahub" like ATL is for Delta. Does anyone know how many flights/day AA operates out of O'Hare?

[AndyIvey]

I will try my best to make these points without mentioning the Wright Amendment as that is not the point of this thread.

I am guessing that the following statements are not great points of controversy for the group:
-Connecting flights benefit the economy by increasing employment at DFW.
-The fees collected for connecting flights cover costs and are not a source of profit for the airlines or airport.

Assuming that the above statements are true, what about:
-The employment provided by connecting flights has less of a positive impact on the local economy than money spent by passengers that treat DFW as a final destination (tourists). I will call these “Destination Flights.”
-The Convention and Visitors Bureau along with the image of the metroplex have a greater impact on the number of “Destination Flights” than the quality of DFW. This is more important than the cost of each flight.

To bring it all together:
-If AA reduced the number of flights out of DFW and new routes by other airlines offset that reduction, the total number of people employed would not change.
-If the above scenario resulted in lower prices, would Dallas not become somewhat more popular for “Destination Flights?”
-If the lower prices created by the above scenario resulted in more flights out of DFW, would the total number of people employed by the airport and its carriers not increase?


Lowering prices at DFW by increasing competition would lower the profit per flight, but would also increase the total number of flights. The fees associated with each flight would not change. Therefore, connection-oriented employment would increase as well as the number of “Destination Flights” and passengers.

[FortWorthGuy]

I will try my best to make these points without mentioning the Wright Amendment as that is not the point of this thread.

I am guessing that the following statements are not great points of controversy for the group:
-Connecting flights benefit the economy by increasing employment at DFW.
-The fees collected for connecting flights cover costs and are not a source of profit for the airlines or airport.

Assuming that the above statements are true, what about:
-The employment provided by connecting flights has less of a positive impact on the local economy than money spent by passengers that treat DFW as a final destination (tourists). I will call these “Destination Flights.”
-The Convention and Visitors Bureau along with the image of the metroplex have a greater impact on the number of “Destination Flights” than the quality of DFW. This is more important than the cost of each flight.

To bring it all together:
-If AA reduced the number of flights out of DFW and new routes by other airlines offset that reduction, the total number of people employed would not change.
-If the above scenario resulted in lower prices, would Dallas not become somewhat more popular for “Destination Flights?”
-If the lower prices created by the above scenario resulted in more flights out of DFW, would the total number of people employed by the airport and its carriers not increase?


Lowering prices at DFW by increasing competition would lower the profit per flight, but would also increase the total number of flights. The fees associated with each flight would not change. Therefore, connection-oriented employment would increase as well as the number of “Destination Flights” and passengers.

Exactly! That is basicly what I have been saying. I am confident that this scenario will play out at DFW once AA gets more competition in this market. It will happen. In the years to come there will be more flights from more carriers to more places and more people flying in and out of DFW.

[F4shionablecHa0s]

What incentive would United or another carrier have to serve routes AA abandoned out of DFW? The whole purpose of the hub system is that these routes are made pointless.

Maybe if AA reduced frequency on DFW-Chicago, United would pick up the slack, but on routes where there is no hub at the other end it just doesn't make financial sense for another carrier to pick up the route.

I do think that DFW-Asia is going to explode in the upcoming years.

[tamtagon]

What incentive would United or another carrier have to serve routes AA abandoned out of DFW? The whole purpose of the hub system is that these routes are made pointless.

Maybe if AA reduced frequency on DFW-Chicago, United would pick up the slack, but on routes where there is no hub at the other end it just doesn't make financial sense for another carrier to pick up the route.

I do think that DFW-Asia is going to explode in the upcoming years.

Capturing all new Asian destinations should be the goal and top priority for DFW airport. The airport recruiters should only focus on AA competitors, treating AA's expansion as a given.

With as much potential as there is with Asian markets, there's almost as much potential for DFW among European markets. DFW needs frequent non-stop access to the all major European markets as much, if not more, as it needs emerging Asian markets. Business is business and it would be much easier for AA's domestic competitors to succeed at DFW with pervasive access to Europe as well as the Pacific Rim.

[Geaux Tigers]

I'd also say a top priority should be to expedite as rapidly as possible Qantas' purchase of the 787 and 777LR aircraft from Boeing. I forsee DFW becoming the next LAX for Qantas and possibly some day replacing LAX as their main North American hub.

[FortWorthGuy]

At this point DFW is just beginning to establish itself as an international hub. International passenger growth is one of the few things DFW has going for it. Aiports like JFK, ORD, LAX, MIA just to name a few have service from several international carriers. DFW is perfectly positioned for this growth with the addition of skylink and Terminal D. Give it a few years and we will gradually see more and more non-stop international destinations out of DFW.

[tamtagon]

Qantas' purchase of the 787 and 777LR aircraft

DFW is perfectly positioned for this growth with the addition of skylink and Terminal D. Give it a few years and we will gradually see more and more non-stop international destinations out of DFW.

word

...and the more new generation great big planes that get put in service the more DFW will become primary destination for international flights.
...and the Port of Houston's agile port in Dallas County will strengthen DFW, domestically and internationally, as the Metroplex becomes the next nationally influential marketplace.

[St-T]

Has Air India announced Houston vs Dallas yet?

[FortWorthGuy]

I think if there is more competition in this market that DFW will gradually close the gap on ORD and ATL and become the worlds busiest airport. I also think that DFW will be in the top 5 of non-stop international and domestic markets served.

[dfwcre8tive]

Pepsi Playscapes Land At DFW International Airport
Family-friendly areas make travel easier; Pepsi Bottling sponsorship expands

DFW INTERNATIONAL AIRPORT, (February 2, 2006) –

Kids will have two new “Landing Zone” play areas at DFW International Airport this summer. The Pepsi Bottling Group (PBG) will spend $190,000 for the installation of the new “Landing Zones” in Terminal B and C that will total almost 1300 square feet. “Pepsi is actually going to install two new ‘runways’ inside of Terminal B and C to allow our youngest passengers a chance to take-off,” said Ken Buchanan, executive vice president of revenue management. “Where other airports have had to put their own money on the table to build the play areas, DFW has been able to negotiate the use of the play areas through our sponsorship deal with The Pepsi Bottling Group.”

PBG's sponsorship will pay DFW $1.2 million in the first year beginning Jan. 1, 2006 and then scale up through the term of the contract with a final payment of $1.3 million. In addition to the annual guaranteed amount, the Airport also receives 40 percent of all vending revenues from the PBG contract.

“The new facilities are made by Playtime and will include a runway, roadway, bridge, car, plane, luggage, an air traffic control tower and wall paintings to complete the Landing Zone,” said Buchanan. “We have been working very hard over the last several years to make travel much more enjoyable, bringing in new restaurants, shops, adding Skylink, International Terminal D and the Grand Hyatt and this is just the latest of the amenities our passengers have to look forward to.”

"The creation of this ‘Landing Zone’ has been a terrific way to further our partnership with DFW," said Pat Boggs, vice president and general manager of PBG's Texas Market Unit. "Every parent knows the challenges of keeping children entertained while at an airport. The Landing Zone provides a safe and fun environment for these younger children and we're thrilled to be a part of its development."

The Terminal B “Landing Zone” will be located at gate 12 and will consist of 685 square feet of play area which includes a bench for parents to relax and watch their children play. The floor and equipment will be covered by colorful padded material to soften the children’s playing surface. Take-offs and landings will also now take place at the “Landing Zone” that will be located in Terminal C at gate 14 and consist of 600 square feet of play area.

Each facility will be centrally located in the terminal, near a food court and a Skylink station. In addition a hanging sign will identify the “Landing Zone” play area. The signage and play area will be co-branded by PBG and DFW. In addition to the new “Landing Zones” DFW has seen a large influx of customer amenities, including the Airport’s first children’s play area built by McDonald’s in International Terminal D. The Airport also built two performance areas for live music or other performance art at both ends of the new terminal. International Terminal D also brought with it a $6 million public art program and two 40,000 square foot concession villages that house great new restaurants and shops.

Playtime, the makers of the play area equipment that will be installed has installed its padded floor, padded play equipment style of play areas in over 300 locations nation wide including malls and McDonald’s restaurants, DFW will become the third airport to have playtime equipment installed following Tampa International Airport and Boston Logan International Airport.

[TexasPlus]

Kids will have two new “Landing Zone” play areas at DFW International Airport this summer. The Pepsi Bottling Group (PBG) will spend $190,000 for the installation of the new “Landing Zones” in Terminal B and C that will total almost 1300 square feet. “Pepsi is actually going to install two new ‘runways’ inside of Terminal B and C to allow our youngest passengers a chance to take-off,” said Ken Buchanan, executive vice president of revenue management. “Where other airports have had to put their own money on the table to build the play areas, DFW has been able to negotiate the use of the play areas through our sponsorship deal with The Pepsi Bottling Group.”

PBG's sponsorship will pay DFW $1.2 million in the first year beginning Jan. 1, 2006 and then scale up through the term of the contract with a final payment of $1.3 million. In addition to the annual guaranteed amount, the Airport also receives 40 percent of all vending revenues from the PBG contract.

This is great for the kids and parents. But how can this be a cost effective way to advertise? Do they charge the public for the use of these areas? There must be something I am missing here.

[AndyIvey]

...and the Port of Houston's agile port in Dallas County will strengthen DFW, domestically and internationally, as the Metroplex becomes the next nationally influential marketplace.

I think the port should help boost international travel through DFW.

[TexasPlus]

^Scratch that, I did some looking into it. The merger has been complete for months but the two airlines will maintain seperate operating certificates for the next 2-3 years until the FAA grants approval to combine them into one. So I guess we will see both airlines for some time to come.

http://www.teamster.org.

US AIRWAYS MECHANICS RALLY FOR TEAMSTER REPRESENTATION
Teamsters Announce They Have Met Card Signature Threshold Needed to Schedule Union Representation Vote

February 13, 2006

(Washington, DC) – US Airways mechanics from the airline’s Phoenix, Las Vegas and Charlotte sites rallied at the company’s headquarters in Tempe and in front of the US Airways terminal at Las Vegas McCarran International Airport to kick off a union election campaign to make the Teamsters their bargaining representative for the approximately 6,300 mechanics and related employees at the newly merged airline. Pro-Teamster workers have gathered enough employee signatures to easily meet the threshold required by law to file for an election.

“Cards have poured in,” said Don Treichler, Director of the Teamsters Airline Division. “US Airways mechanics know that the Teamsters bring great contracts and strong representation for airline mechanics. Teamster contracts at Continental, UPS, AirTran and Frontier have set an industry standard for airline mechanics. These mechanics deserve the same strong representation, especially in this case where crucial workplace rights are at stake. In particular, under a Teamster contract they will retain 100 percent of their seniority.”

America West Airlines and US Airways merged to form the fifth-largest air carrier in the country in late September. The Teamsters represent about 900 mechanics at former America West sites, while the International Association of Machinists (IAM) represents about 5,400 at the original US Airways sites, according to company records.

The mechanics’ key issues are outsourcing of heavy maintenance work, job security, seniority, and their right to a voice in their union and workplace—as well as major giveaways in the IAM contract, bargained with US Airways under bankruptcy conditions.

“This election is about two major goals,” said Andy Marshall, Secretary-Treasurer of Local 104 in Phoenix, Arizona. “First, the Teamsters have a deep commitment to protecting the former America West mechanics we already represent. Second, we believe we can do a lot better for those mechanics currently under the IAM contract. Under the IAM contract, their pensions have been wiped out, their sick leave has been cut, and now they can’t take vacation. My heart really goes out to them. What we can win for them will be a night-and-day contrast. The choice for mechanics is clear, and we believe that in a free election they will vote for the Teamsters.”

Today’s deadline for card filing was set following a National Mediation Board decision on January 30, 2006, that declared that America West and US Airways were now operating as a single airline and a union election could proceed.

[Tnekster]

^Actually, I saw one of the newly painted planes in Vegas. Mostly white with the tail being the same and the underbelly being dark blue.

[UptownDallas]

at least we see how people would really feel if there were too many highways and lanes.

To build on the analogy, I would say a better example would be how people would feel if the state built a ten lane freeway from Dallas to Lone Oak made out of marble and granite, with the names of all the TXDOT bureaucrats etched into the sides of each overpass.

[dfwcre8tive]

Found this interesting old postcard image of DFW Airport.

[jsoto3]

Wow! I wonder if it will really ever build out like that.

[UptownDallas]

Found this interesting old postcard image of DFW Airport.

Now THAT'S an economic engine!!!

[FortWorthGuy]

Wow! I wonder if it will really ever build out like that.

Have any of you ever looked at this?


http://www.dfwairport.com/cdp/masterplan.html

[dfwcre8tive]

Have any of you ever looked at this?


http://www.dfwairport.com/cdp/masterplan.html

Yeah, 250 gates by 2019. $3 billion in additions. Of course, those were pre- 9/11 changes and other events.

[St-T]

Spirit Airlines to reduce service from D/FW

02:11 PM CST on Thursday, March 2, 2006
By ERIC TORBENSON / The Dallas Morning News



Spirit Airlines, which launched daily low-fare service from Dallas/Fort Worth International Airport to Fort Lauderdale, Fla., in January, will cut its frequency to two flights a week starting in May and continuing through the summer, according to D/FW officials.

The changes reflect Spirit’s decision to retire its MD-80s faster than originally planned because the planes are not sufficiently fuel efficient. Spirit, based near Fort Lauderdale, cannot replace the departing MD-80s fast enough with new Airbus planes.

[FortWorthGuy]

Wright is only part of the reason for the flight cuts.

[FortWorthGuy]

March 2, 2006, 1:05PM
(PRN) DFW International Airport to Add New Carrier and More Service to Growing Cargo Portfolio


PRNewswire

Air France Debut and Additional China Cargo Flights Add to Double-Digit Growth

Rate in International Cargo

DFW INTERNATIONAL AIRPORT, Texas, March 2 /PRNewswire/ -- DFW International Airport today announced significant new freighter service to North Texas, just as the Airport's new International Cargo Centre opens for business. Air France Cargo will land its first freighter at DFW on April 1, marking a vital addition of new European cargo service from DFW. In addition, DFW will see new cargo service from China Cargo, with two new frequencies weekly beginning in June.

"This just makes sense for Air France," said Jean-Yves Cap, Director of Air France Cargo USA. "We did a survey of the cargo market and saw a need that we could fill. Air France will shift one of our three weekly flights from Houston to DFW."

The new Air France flight will have an annual economic impact of $3.5 million and will arrive every Saturday from Paris Charles de Gaulle, after a stop in Mexico City. The Boeing 747-400 freighter will then leave DFW on its way back to Paris.

"We anticipate that two-thirds of the cargo bound for Paris will originate from DFW," said Cap. "With Korean Air already flying a full cargo plane to DFW daily, we anticipate quick growth with the help of our Skyteam Cargo alliance."

Founding Skyteam Cargo airlines are Air France, Korean, Aeromexico, and Delta Air Logistics. In the five years since its creation, the Atlanta-based group has added KLM, CSA, Alitalia, and Northwest Airlines.

"Just one month from now DFW will finally have Air France Cargo," said Joe Lopano, executive vice president of marketing and terminal management. "We have been working to get Air France to come to DFW for years. The time is right, the market is primed and we look forward to having key new service to Europe."

France currently accounts for 17,400 tonnes of cargo in and out of DFW annually. This new flight is expected to raise the annual tonnage by as much as 7,800 tonnes.

"Not only does Air France provide a great opportunity for DFW to increase its service to Europe, it also opens up the airline's huge network, providing increased trade opportunities to Europe, Africa and the Middle East," said Lopano. "New service like that of Air France and China Cargo allow companies reliant on foreign goods to bring their product to market faster, cheaper and ultimately provides the customer with greater choices."

Beginning in June, China Cargo will expand its current service to DFW with the addition of two 747 flights a week. The additional two weekly flights will begin in Shanghai, stop at DFW, then Chicago O'Hare, Beijing and finally return to Shanghai. The airline has enjoyed outstanding growth at DFW beginning in February 2004 with three MD-11 flights per week. China Cargo quickly added a fourth weekly flight and upgraded their aircraft complement to include two MD-11s and two 747s.

DFW has seen outstanding growth over the last year, with international cargo growing at 11 percent a year and Asian cargo growth at six percent. Asian freighters will frequent DFW 35 times per week with the addition of China Cargo's two new flights representing two-thirds of DFW's international cargo. Air France's new service to DFW marks a 20 percent increase in European cargo freighters weekly.

"China Cargo is a great airline that is really taking advantage of what DFW has to offer," said Lopano. "We have a great Airport that offers over 18,000 acres, seven runways, 3 control towers, 12 landing approaches and no restrictions on load size or when they want to arrive day or night.

"In addition, Trammell Crow just yesterday opened International Air Cargo Centre Phase III and Logistic Centers 1, 2, and 3 on the west side of our airfield with direct access to a taxiway," added Lopano. "This new capacity helps DFW market the Airport to potential airlines, with the knowledge that they can grow their business in the same facility without having to make huge financial infrastructure investments. That really lowers the risk associated with starting new business."

Trammell Crow's master plan provides for approximately 395,000 square feet of air cargo, logistics and freight forwarding office and warehouse space with direct and immediate access to the tarmac. DFW and Trammell Crow Company are demonstrating strong industry leadership within North America, through the successful development of the first air cargo facility designed specifically to accommodate both the Airbus A380 and Boeing 747-400F freighter aircraft.

"The DFW project truly defines Trammell Crow Company's Global Airport Development strategy," said Steven Bradford, Principal with Trammell Crow Company. "The focus of Trammell Crow Company's airport development initiative is to serve the real estate needs of airlines, logistics companies, and their service providers by offering innovative real estate solutions at strategic locations throughout the world. Our DFW project achieves this objective."

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 1,900 flights per day and serving 59 million passengers a year. DFW International Airport provides non-stop service to 129 domestic and 36 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 .

At least cargo operations are growing. I wish some of the cargo airlines that also offer passengers service would start service at DFW. I expect they will after the Wright fight is resolved. DFW is just a boiling pot waiting to explode with substantial growth especially internationally. Its perfect positioned to handle the new planes, and provide its passengers with first rate facilities.
Chris

[Tnekster]

Air France starts cargo service from D/FW Airport
Dallas Business Journal - 3:41 PM CST Thursdayby Margaret AllenStaff Writer
A loss for George Bush Intercontinental Airport is a gain for Dallas/Fort Worth International Airport.

Air France on April 1 will start dedicated cargo service to D/FW, significantly increasing the airport's freighter capacity into Europe.

Air France said it will handle the service by pulling a Boeing 747 freighter flight from Houston, according to Jean-Yves Cap, director of Air France Cargo USA, in a statement released by D/FW Airport.
"This just makes sense for Air France," Cap said. "We did a survey of the cargo market and saw a need that we could fill. Air France will shift one of our three weekly flights from Houston to D/FW."

Air France will arrive and depart each Saturday through D/FW. It's anticipated the new route, flying from Paris to Mexico City to D/FW, will have an economic impact of $3.1 million annually, according to Joe Lopano, executive vice president of marketing at D/FW.

Two thirds of the freighter, which has 110 metric tons capacity, will be allocated to D-FW tonnage, Cap said.

"We anticipate that two thirds of the cargo bound for Paris will originate from D/FW," said Cap.

Some of the increased volume will likely be due to Air France's membership in the global SkyTeam Alliance, a partnership of nine airlines from three continents. The alliance allows the carriers more available fights and easier conections between carriers, as well as one reservation network.

Air France at D/FW is likely to get overflow cargo trade from SkyTeam partner Korean Air, allowing it to build share in the Asian market through D/FW. Korean Air has daily cargo flights out of D/FW into Asia, and its cargo has been growing at a rate of 22 percent a year at D/FW.

D/FW's total international air cargo has grown about 11 percent annually since 1996. About 26 percent of the total was trade with Europe. D/FW ranks seventh in the United States for non-parcel international air cargo trade, with 277,315 metric tons in 2005.

Having service from D/FW into Paris' Roissy-Charles de Gaulle International Airport also increases the potential for trade between D/FW and Africa and the Middle East, said Lopano, citing Air France's cargo flights into those regions. D/FW's trade with the Middle East in 2005 tallied only 3 percent, and with Africa, only 1 percent.

France is already D/FW Airport's third-largest European trading partner, according tothe airport. Only the United Kingdom and Germany have higher volumes of trade.

According to the airport, D/FW ships 17,400 metric tons out of D/FW to France each year.

With the addition of the Air France flight, D/FW will have six all-cargo freighters a week into Europe, Lopano said. Other European service includes Singapore Airlines' three freighters a week and Lufthansa's two freighters a week, he said.

Nearly 30 percent of the cargo from D/FW into Europe is machinery and industrial equipment, with electrical equipment a distant second at 12 percent. The remainder of the freight is communications equipment, chemicals, perishables and food, transportation equipment, consumer goods and computers and computer equipment, according to D/FW.

Air France cargo executives have said the airline -- in a partnership with carrier KLM Royal Dutch Airlines that excludes North America -- is making a concerted effort to beef up its cargo share.

European carriers' market share has been shrinking the past two decades, from 45 percent to 30 percent, according to the airline's officials.

They say the European market has strong growth prospects. Charles de Gaulle ranks second for volume among Europe's airports after Frankfurt Airport, while Amsterdam Airport Schiphol ranks third, according to Air Cargo World.

D/FW's marketing officials have been courting Air France for some time, said Lopano. Prior to the terrorism attacks of 9/11, Air France operated commercial passenger service into D/FW for eight months. The airline stopped that service shortly after 9/11, citing low volumes. The start-up of freighter service doesn't necessarily mean passenger service will follow, but Lopano said he's hopeful.

"We think there's also an opportunity for the passenger side," said Lopano. "They're one of our top targets."

mallen@bizjournals.com | 214-706-7119.

[FoUTASportscaster]

More proof that competition is good. With Alliance in existence, it seems to me that DFW's game has to be sharper, and they are.

[gc]

Airports of World's Busiest Airports
Robert Malone, 03.06.06, 6:00 AM ET
http://www.forbes.com/2006/03/03/wor...rts_print.html

Airports handle passengers and yes, freight. Gobs and bobs of freight.

Everything from frozen partridges (and fresh pear trees) to multi-ton steam generators, an Orca or 700,000 bottles of wine by UPS, and volumes of cheese, yogurt and electronic products from faraway Finland (or their outsourced facilities in China or Mexico), France, Greece, Taiwan and, of course, China. The airports worldwide handle passengers and cargo in ever-larger quantities. Most who know about FedEx would assume their Memphis, Tenn., hub would rank high in cargo handling. It does. It is the highest in the world in the amount of cargo handled. And if anyone wonders why Louisville, K.Y. is No.11 in the world, they should recall it is the main air hub for UPS, whose other hubs also rank high, such as Dallas (No.25 in the world). One of the big issues in the airline world is hubs and where they should be located. Many cities would like their airport to have a cargo hub, along with the jobs and income derived from such a facility.

Making such a choice involves a host of issues. Many companies would like to choose a hub position that is in a reasonable location and the shortest distance to its multiple markets. The preferences of cities do not always match the needs of carriers or manufacturers or retailing establishments. "There are many metrics involved in choosing a place for a hub," says Brandon Fried, executive director of the Airforwarders Association. "The first involves availability. Many airports are over-taxed like Los Angeles. Other cities are, on the other hand, begging for cargo business." In the Midwest, for instance, Chicago may be out of the question, so UPS chose Rockford as a hub. Other metrics involve the economics of local or regional costs, or positioning for traffic with China. Not all cities find the idea of cargo planes with all-night landings and takeoffs appealing. This comes down to "nimby" or "not in my back yard."

It is interesting to see those airports that rank high in both passengers and freight: Los Angeles, Paris' Charles De Gaulle and Frankfort. And also interesting to see those that rank high in one and low in another category: Atlanta is No.1 in passengers but a mere No.23 in freight. Dallas-Fort Worth is No.6 in passengers and only No.25 in freight. London's Heathrow is No.3 in passengers and does not make the top 30 in freight. Chicago's O'Hare that tries most passengers' patience is No.2 in passengers and just No.15 in freight. It is worth noting that five out of 12 of the largest passenger handling airports are in the U.S. While in the cargo category, six of the top 12 are U.S.-based. The biggest surprise is the status of Anchorage, Alaska. It's the fourth largest cargo airport. The reason is a single word: China. The China air cargo trade is booming, and Anchorage has become a hub for many of the integrated express carriers like UPS and FedEx.

Airports were not originally designed for cargo, nor were the planes that landed at them. The planes at first had side loading that's awkward at best and still is. Many freight carriers today have noses that open. These can swallow all the offering of a full forklift, while disgorging the same cargo at the other end with dispatch. The International Air Transport Association sees the growth between 2005 and 2009 hovering around 6% worldwide with slightly more in Asia, with less in Latin America and Africa. Since the placement of hubs is already difficult, times ahead may call for far more funding. Planning and execution help make the world's supply chain run smoothly.

The 12 largest cargo airports in the world are:

Airport Metric tons handled (2004)
1. Memphis 3,554,575

2. Hong Kong 3,119,008

3. Tokyo (Narita) 2,375,133

4. Anchorage 2,252,911

5. Seoul 2,133,444

6. Los Angeles Inter. 1,913,676

7. Paris (Charles De Gaulle) 1,876,980

8. Frankfurt 1,838,894

9. Singapore 1,795,646

10. Miami 1,778,902

11. Louisville 1,739,492

12. New York (JFK) 1,706,468

The 12 largest passenger traffic airports
(passengers in 2004
source: Airports Council International)

Airport Annual passenger traffic

1. Atlanta (Hartsfield-Jackson) 83,578,906

2. Chicago (O'Hare) 75,373,888

3. London (Heathrow) 67,343,960

4. Tokyo (Haneda) 62,320,968

5. Los Angeles International 60,710,830

6. Dallas-Forth Worth International 59,412,217

7. Frankfurt International 51,098,271

8. Paris (Charles De Gaulle) 50,860,561

9 Amsterdam (Schiphol) 42,541,180

* Denver International 42,393,693
* Las Vegas (McCarran) 43,436,571

12. Phoenix (Sky Harbor) 39,493,519

Airports Council International 2005 figures are not yet complete, but those available vary little in ranking.

[Tnekster]

^Dallas has nowhere to go but up. How many airports can boast the kind of capacity that DFW has?

[JasonDallas]

^Dallas has nowhere to go but up. How many airports can boast the kind of capacity that DFW has?

I fear though, that if we don't act soon we may miss our opportunity. Denver has come online as the world's largest airport and will meet any capacity needs any airlines have, possibly sending growth their way instead of this way. DFW doesn't have *that* many advantages over DIA. Sure, we're closer to some of the countries south of the US but Houston cover that well and has the brains to expand if it gets stressed by the additional traffic.

I just see DFW missing the boat if nothing changes from this point. I think Fort Worth is happy with the current situation as long as they get AA's tax $, but I personally would like to see DFW grow into an airport with ATL like traffic and that isn't going to happen unless something changes. Perhaps it's in Fort Worth's best interest to have DFW be an underperforming airport as long as AA gets most of the business, but it sure seems short sighted for the region and nation.

Jason

[Tnekster]

I fear though, that if we don't act soon we may miss our opportunity. Denver has come online as the world's largest airport and will meet any capacity needs any airlines have, possibly sending growth their way instead of this way. DFW doesn't have *that* many advantages over DIA. Sure, we're closer to some of the countries south of the US but Houston cover that well and has the brains to expand if it gets stressed by the additional traffic.

Denver may have a larger airport but they don't reside on the river of trade like Dallas does. Dallas sits at the turning point from I-35 to I-20 where most of the trade bound for the eastern seaboard and eastern Canada travels. Denver does not enjoy this gift of location and never will. All of these trade deals that Dallas is signing with Long Beach and Mexico are only going to increase the regions stature as a logistics hub and increase the perceived value of DFW as an air cargo facility. The birth of the inland port in SE Dallas is being driven primarily by the river of trade that passes through SE Dallas. This primary trade corridor was not created by any government entity but rather the desire of trucking firms to get goods from Laredo to the Canadian border by the shortest and most direct route possible. That route is I-35, 1-20 to I-30 and up from there. I don't think you should fear. Our biggest ace is our location and that can not be beat or taken away from us. Even Houston recoginzed the importance of shipping goods up I-45 into SE Dallas to tap into the river of trade.

[AndyIvey]

Denver may have a larger airport but they don't reside on the river of trade like Dallas does. Dallas sits at the turning point from I-35 to I-20 where most of the trade bound for the eastern seaboard and eastern Canada travels. Denver does not enjoy this gift of location and never will. All of these trade deals that Dallas is signing with Long Beach and Mexico are only going to increase the regions stature as a logistics hub and increase the perceived value of DFW as an air cargo facility. The birth of the inland port in SE Dallas is being driven primarily by the river of trade that passes through SE Dallas. This primary trade corridor was not created by any government entity but rather the desire of trucking firms to get goods from Laredo to the Canadian border by the shortest and most direct route possible. That route is I-35, 1-20 to I-30 and up from there. I don't think you should fear. Our biggest ace is our location and that can not be beat or taken away from us. Even Houston recoginzed the importance of shipping goods up I-45 into SE Dallas to tap into the river of trade.

Great post. We'll be a destination for business leaders from China and Mexico. If we can capitalize on CAFTA, we can be a trade center for all of Central America. The inalnd port and a large spanish speaking population give us a boost over Denver.

[Tnekster]

^Thanks, I think this is the most exciting opportunity Dallas has going these days. It is so much bigger than anything else out there and will create one of the largest job centers in the metro area within a few short years.

[FortWorthGuy]

Any advantage Denver has over DFW (if any) will go away in the coming years. Taxi times are the only thing I have heard are better there and DFW has already got the funds to construct perimeter taxiways in order to more efficently move aircraft around the runways and to the terminal gates. I firmly believe that DFW will see ATL like traffic once this market is opened up and the Wright Amendment is thrown out. Then passengers numbers will soar, new carriers will service both DFW & Love. existing carriers will expand their offering and air fares will fall. DFW is perfectly located, prepared for future growth and too good a facility not to be growing like other airports around the country. This is what fustrates me! DFW needs to be fighting Wright too but I guess they have an obligation to the airline that pays the bills there. No competition for AA is what is holding DFW back. The hub provides us with tons of daily frequencies to hundreds of destinations worldwide but it also prevents any other carriers from offering any substantial service from DFW because of AA's straglehold on the airport. Its a double edged sword. That stranglehold will be weakened when AA has to deal with WN at Love. We then will have more choices and low fares from both airports! I believe that growth is coming we just have to get rid of Wright! I cant wait!

WRIGHT IS WRONG! SET LOVE FREE AND DFW WILL FINALLY PROSPER!