'State of the Airport' Address Calls For Cost Controls
DFW International Airport CEO Jeff Fegan presented the "State of
the Airport" address to the board of directors Thursday,
highlighting DFW's success through tough economic times and calling
for continued development and growth of the region's economic
engine.
"DFW is very aware of the current economic conditions affecting
the aviation industry throughout the nation and the world," said
Fegan. "All the work we do at the Airport is grounded in the vision
of connecting the world, one of the key drivers of our success. We
could not have achieved our goals without our engaged workforce who
continuously strive to keep our airport very cost competitive for
our airline partners."
In his address, Fegan noted Airport management kept the 2009
Airport budget from increasing over the 2008 figure. He said the
DFW management team is continuing to find cost savings to offset
declining revenues, resulting from lighter travel demand in a
challenging economy. Last year, the Airport cut $23 million from
the fiscal 2009 budget. This year, the Airport is forecasting
another drop of $20 million in revenues and has already identified
$18 million in savings and reductions to offset the difference.
The board was presented extensive research that shows DFW is one
of the most cost-competitive airports in the country. Only 35
percent of its costs are paid with airline revenues, making DFW one
of the most airline-friendly airports in the nation in terms of
cost of doing business. No tax dollars are part of DFW's annual
operating budget, and the Airport continues to find ways to drive
down airline costs with new revenues.
Fegan noted that aviation is frequently an early indicator of
economic upturn, and called DFW "well-positioned as a mid-continent
mega-hub" as conditions improve.
"Despite facing strong regional and national competition, DFW
has maintained its benefits of minimum airspace and facility
constraints, and we hold a strategic advantage when airlines are
looking to grow and expand their service," added Fegan.
Fegan pointed out that the Airport continues to be the major
catalyst to the North Texas economy, generating more than $16
billion dollars in annual economic activity, and supporting over
300,000 full-time jobs. He said regionalism is key to the future of
North Texas with DFW at the epicenter.