"Dallas Airport Officials Likely to Make American New Terminal's Primary Tenant"

Wednesday, June 9, 2004

Dallas Airport Officials Likely to Make American New Terminal's Primary
Tenant
The Fort Worth (TX) Star-Telegram


D/FW AIRPORT, Texas -- Board members at Dallas/Fort Worth Airport expect
to sign a lease agreement Thursday making American Airlines the dominant
tenant of the future international Terminal D.

Three points of negotiation -- final environmental language, how to
share the south ticket hall and whether to let Canada-bound American
flights use terminals other than D -- remain.

But D/FW staff members said they believe that the airport board can sign
the lease agreement and send the contract to American's board.

"We're extremely pleased to be at the position to reach a lease for the
substantial portion of Terminal D," D/FW Chief Operating Officer Kevin
Cox said Tuesday.

Under the lease, the world's largest airline will occupy 19 of the 28
gates in Terminal D, which is scheduled to open in June 2005. D/FW will
offset American's share of costs for expensive development projects each
year.

The incentive, which varies depending on American's passenger traffic,
will offset $30 million of American's costs in the first year, airport
officials estimate. In return, by 2007, the airline promises to increase
its D/FW departures by 21 percent.

That would leave about one-third of Terminal D for others. D/FW is
negotiating with long-haul carriers and other airlines not now serving
the market, Cox said.

The airport's plan is to concentrate all international flights -- along
with customs and other non-U.S. travel issues -- in Terminal D.

But on Tuesday, American was haggling for an exception to that plan,
saying the carrier should be free to move Canadian flights, which do not
require many of the usual international customs hassles, to other
terminals.

"We just want to retain some flexibility to operate international
flights to other terminals that don't require" Federal Inspection
Service, American spokesman Tim Wagner said.

The airline projects that its international service may not be able to
fit at the 19 American gates in Terminal D during some parts of the
travel day.


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