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July 26, 2012

DFW Airport board cuts additional $2 million out of its budget per American's request

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 the airport try to 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.

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 in bankruptcy but is committed to continuing its partnership at DFW Airport, where 85 percent of the flights are operated by American.

While Cox asked for operating expenses to be lowered by $4 million, 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 year.

The board approved the $659 million budget on Thursday which is up 8 percent from last year, or $51 million. Most of the increase, about $45.5 million, is due to higher debt service payments the airport will make as part of the funding for the terminal renovation program.

Fort Worth mayor Betsy Price said delaying some expense 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 airport's budget for fiscal year 2013, which begins on October 1, includes parking rate increases at its Express and Terminal lots and funding to expand international marketing efforts.

-Andrea Ahles

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Comments

brookedoris

How about trimming the salary and bonuses of AMR's and American Airlines' CEO and top execs instead?

jjj

If American Airlines is trying to cut cost, then how come they have not given up the name on all of the " American Airline's Center's " across the united states? I thought I read something about how it cost them around TWO Million dollars to sponser these centers. That would help save a job or two.

jw

Then why is the airport raising parking prices?? cutting two million, making 10 million more.

Flights

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.

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