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Thu, Aug 07, 2008

Report: DFW Considers Closing Terminal To Save Money

Around 35 Of 155 Available Gates Unused

It appears airlines aren't the only ones forced to tighten their belts to deal with high fuel prices.

The Fort Worth Star Telegram quotes officials at Dallas/Fort Worth Airport in reporting one of the airport's terminals may be closed in response to an anticipated decline of seven percent in airline traffic there.

Airport officials are budgeting for fiscal 2009, which begins in October, and American Airlines -- which operates a hub at D/FW and accounts for 80 percent of the airport's commercial traffic -- plans to cut 42 flights starting in September. The paper reports airline cutbacks will reduce airport revenue by $23 million, at the same time costs are expected to rise $24 million.

Airport Chief Executive Jeff Fegan told his board Tuesday to consider pulling $10 million earmarked for capital improvements into the operations account, increasing landing fees, and possibly even closing a terminal.

Officials say 35-40 of DFW's 155 gates are currently unused. They're scattered around the airport's terminals, and include nine gates located at a satellite location off Terminal E that's gone unused since Delta pulled its hub out of DFW in 2004.

Currently, American dominates Terminals A and C, while American Eagle splits Terminal B with United. A hodgepodge of remaining carriers -- including Frontier, Delta and AirTran -- use gates in Terminal E.

Two years ago, DFW invested heavily in a new International terminal. Today, foreign carriers use about two-thirds of the 28 available gates at Terminal D; American has moved some domestic flights to the impressive new terminal to fill out the space.

If operations were consolidated to allow closing one whole terminal, airport CFO Chris Poinsatte estimates it could save up to $21 million. Among the resulting issues would be negotiating the changes with the airlines, and dealing with vendors who leased retail space at the terminal to be shut down.

The airport board is scheduled to consider the budget at a meeting Thursday night.

FMI: www.dfwairport.com

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