Archives
Air, Business, Freight News
DFW Airport, American Airlines Sign 10-Year Use and Lease Agreement
[ June 6, 2023 // Gary G Burrows ]Dallas Fort Worth International Airport (DFW) and American Airlines signed a new 10-year Use and Lease Agreement, which includes $4.8 billion in pre-approved capital investments – including the construction of Terminal F, the renovation of Terminal C and other significant modernization projects.
Dallas Mayor Eric L. Johnson, Fort Worth Mayor Mattie Parker, DFW CEO Sean Donohue and American Airlines CEO Robert Isom gathered at DFW for a special signing ceremony of the Use and Lease Agreement, marking a new era of growth and innovation for the world’s second-busiest airport.
“The Use and Lease Agreement not only creates a predictable and equitable business model for DFW Airport, but it also underscores the commitment of the airport and our airline partners to provide passengers with the best possible travel experience,” said Sean Donohue, CEO of DFW. “Our partnership with American Airlines, our largest airline, is stronger than ever. With the support of Robert Isom and the American team, we are making investments that set the stage for the airport of the future – one that prioritizes innovation, customer experience and sustainability.”
“American is proud to call North Texas home, and DFW is our largest hub and a central gateway to our extensive international and domestic network,” said American’s CEO Robert Isom. “American has led the growth that has propelled DFW to become the second busiest airport in the world and we are thrilled to have finalized a new lease agreement and capital plan that sets the stage for American, DFW and the North Texas region to continue to grow for years to come. We value our longstanding relationship with DFW and are grateful to Mayor Parker, Mayor Johnson, the DFW Airport Board and Sean for their continued partnership.”
The Use and Lease Agreement is the main governing document between the airlines and the Airport and establishes the Airport’s business model. The agreement outlines DFW’s major capital projects over the next 10 years. These projects include:
· An estimated $2.72 billion for the expansion of the Central Terminal Area, including a major reimagining of Terminal C, “pier” expansions off Terminal A and Terminal C, and significant upgrades to roadways and terminal access.
· An estimated $1.63 billion for the construction of a new Terminal F, featuring a 15-gate concourse. Terminal F will provide state-of-the-art facilities and amenities, including modernized baggage handling, expanded concessions and additional passenger gates to accommodate the growing demand for air travel.
The terminal expansions will deliver 24 additional gates to prepare American and other airlines for long-term growth at DFW. At the completion of construction, American will add new gates that are constructed in the Terminal A and Terminal C piers projects to its operating portfolio. The projects will also allow American to expand operations in existing terminals to maximize its operational capability and enhance the experience for connecting customers. The new agreement provides American and DFW the opportunity to work together on additional capital projects throughout the term of the lease.
The new Use and Lease Agreement replaces the 2010 agreement – which expired in 2020 and was extended during the pandemic – and maintains many of the same business arrangements as the prior version, which will provide certainty and cost predictability to support the continued growth of the airlines and DFW.
Tags: American Airlines, Dallas Fort Worth International Airport