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"DFW Airport cuts $2 million from next fiscal year's budget"
Friday, July 27, 2012
DFW Airport cuts $2 million from next fiscal year's budget
By Andrea Ahles
The Fort Worth (TX) Star-Telegram
The Dallas/Fort Worth Airport board trimmed an additional $2 million in
operating expenses out of its budget for next fiscal year after American
Airlines requested that the airport lower its costs.
"We ask our partner, who has always risen to the occasion, to partner with
us this year and attempt to flatten the budget," said Kevin Cox, vice
president of real estate for American, on Thursday as he asked the airport
board to trim $4 million from the budget.
Cox said that with American's parent company, AMR Corp., in bankruptcy, the
carrier is looking at every penny in trying to lower its costs. He added
that American has terminated leases or pulled back service at some airports
as it restructures but is committed to DFW Airport. With 85 percent of DFW's
flights operated by American, the airline provides the bulk of revenue for
Following some discussion on the airport budget, the board decided to
eliminate $2 million by delaying the demolition of a building formerly used
by Sky Chefs and by reducing its contingency fund for the upcoming fiscal
Fort Worth Mayor Betsy Price said delaying some projects, like the building
demolition, may help American since "every dollar counts."
"It makes much more sense to me that we take the [budget] reductions now so
it may be easier for [American] to absorb them next year," Price said.
The board approved a $659 million budget, which is $51 million, or 8
percent, more than last year. Most of the increase, about $45.5 million, is
due to higher debt service payments required to pay for the airport's
terminal renovation program. The airport's budget is funded by landing fees
and terminal rents paid by airlines, plus revenues generated from parking,
concessions and rental cars.
The airport's budget for fiscal year 2013, which begins on Oct. 1, includes
increased parking rates at Express and Terminal lots and funding to expand
international marketing efforts.
Airport staff said DFW expects passenger numbers to grow by 1.2 percent next
Prior to American's requests, the airport had already implemented some cost
savings. This summer, it offered an "enhanced retirement program" for
employees who were already retirement age.
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