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November 29, 2011

DFW Airport says "business as usual" despite AMR bankruptcy filing

The Dallas/Fort Worth Airport released a statement related to the Ch. 11 bankruptcy filing of American Airlines' parent company, AMR Corp.

The airport also published a questions-and-answers file for its customers.

-Andrea Ahles

Dallas/Fort Worth (DFW) International Airport released the following statement today:

“While the situation is fluid due to AMR’s bankruptcy filing, operations are business as usual at DFW,” said Jeff Fegan, CEO of DFW International Airport. “We stand ready to assist our partners at American Airlines, and they know they have our full support in their reorganization effort. American Airlines has been and continues to be a highly valued partner for DFW and for the entire Dallas/Fort Worth region. We at DFW are confident that our Airport’s very low cost structure and our excellent operating environment will represent a solid foundation for future American Airlines operations here.”

“For now, we anticipate that passenger levels and Airport revenues will remain strong even during the American Airlines reorganization proceedings,” said Fegan. “We will be carefully monitoring the situation as it works its way through the process, and we have the ability to manage operations to fluctuating demands.”

DFW International Airport will continue with plans for airport renovations under the Terminal Renewal and Improvement Program (TRIP) and other capital improvement projects that are currently underway. As always, DFW Airport assesses its plans in light of new circumstances that emerge, and will continue to do so.

Q&A About Impact at DFW International Airport from AMR Bankruptcy Filing
November 29, 2011

Q1: What impact will the American Airlines bankruptcy have at DFW Airport?
A: Airline decisions will determine the short-term impact at DFW Airport in terms of flight
operations. As the details of the airline’s reorganization plan emerge, DFW expects to be a key
component in the airline’s recovery strategy. We are the airline’s home base and largest hub,
and we offer the lowest cost structure of any major hub airport in our competitive set.

Q: What impact will this have on passengers?
A: The bankruptcy will have little or no short-term impact at DFW Airport in terms of what
passengers will see in the terminals. We expect to continue to offer great customer choices in
concessions and parking, and the highest levels of customer service in the airport industry.

Q: What impact will this have on DFW operations?
A: For now, operations will be business as usual. DFW is fully prepared to handle fluctuations
in air passenger service.

Q: What specific business arrangements does American Airlines have with DFW Airport?
A: American Airlines is a signatory carrier to the DFW Lease & Use Agreement (“Lease”), which
is the document that specifies and controls airport rates and charges, the airport’s financial
structure, and capital improvement plan. Under the Lease, American Airlines leases Terminals
A, B, and C and portions of Terminal D. American Airlines also holds separate leases for
several maintenance hangars and cargo/mail facilities at the Airport.

Q: What will the bankruptcy mean for Airport revenues?
A: DFW is fortunate to have diverse sources of revenue to finance airport operations and
improvements. Our largest revenue sources are airline landing fees and rents, and we are
blessed with a variety of non-aviation sources of income such as parking, concessions,
commercial development, and gas exploration royalties.

Q: What will the bankruptcy mean for Airport future plans, including the Terminal Renewal and
Improvement Program (TRIP), and plans for other projects such as DART Light Rail and The T
commuter rail?
A: The filing presents no immediate alterations for development plans at DFW, including TRIP.
However, based on the fact that TRIP is designed as a phased renovation of the Airport’s
legacy terminals, the phases could be slowed down if necessary. As always, DFW Airport
assesses its plans in light of new circumstances that emerge, and we will continue to do so.

 

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