DFW Airport cuts $2 million from next fiscal year's budget

July 27--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 operations.

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 year.

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 year.

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. .

Andrea Ahles

817-390-7631

Twitter: @Sky_Talk

Copyright 2012 - Fort Worth Star-Telegram, Texas