Delta Air Lines Completes Flight Reductions

1st Feb 2005

Delta Air Lines
today completed its planned reduction of daily flights at DFW
International Airport, and in the process has cleared 24 gates in DFW’s
Terminal E. Last September, Delta Air Lines announced it would drop DFW as
one of its major hubs and greatly reduce its flight operations in North
Texas. Nevertheless, Terminal E is open for business and the empty gates
represent an unprecedented chance at growth for another carrier.

On this last day of Delta hub service at DFW, Airport Ambassadors and
volunteers hosted a small reception for Delta employees as a way to thank
them for their years of dedication to the airline and the Airport. The
volunteers gave away cookies and ribbons, and HMS Host provided Starbucks
Coffee for the event. In addition, DFW posted a special e-message of
thanks to Delta and its employees on the Airport’s web site, .

On February 1, DFW will regain control of 24 gates in Terminal E and the
Airport is currently in negotiations with multiple carriers for use of
those gates. In early January, DFW offered the gates in a package deal to
any domestic airline interested in leasing at least ten of them, as part
of an unprecedented stimulus plan. The offer included free rent in
Terminal E for one year and up to $22-million in other incentives.

“Rest assured, we are doing everything we can to attract new or increased
service to DFW,” said Jeff Fegan, CEO of DFW International Airport. “This
temporary setback represents a unique and very attractive opportunity for
any carrier to gain a considerable stronghold in the competitive North
Texas air travel market.”

The impact of Delta’s reduction of service at DFW Airport is already
having a profound impact on DFW International Airport and the North Texas
economy. DFW alone will lose $50-million in annual revenues.


Delta’s restructuring also means the North Texas economy as a whole will
lose 7000 jobs and more than three-quarters of a (B) billion dollars
annually as a ripple effect, according to a recent study commissioned by
the Airport.

“We’re working to maintain our strong business relationships with
companies impacted negatively by Delta’s reductions,” said Kevin Cox,
Chief Operating Officer of DFW International Airport. “We will also pass
measures to relieve concessionaires of many of their minimum requirements
to do business in Terminal E while we search for another air carrier or
carriers to step in.”

The DFW International Airport Board later this week is expected to approve
an aid measure for concessionaires, relieving them of normal rent payments
until additional air service returns to Terminal E. Last month, the Board
set aside minimum commission requirements from sales for concessionaires
affected by Delta’s flight reductions.

“DFW has demonstrated time and again that it is committed to seeing my
business interests are protected,” said Jethro Pugh, owner of one of the
concession businesses in Terminal E. “We saw it in the period of time
after 9/11, and we’re seeing it now. The Airport’s leadership in times of
difficulty is what sets it apart.”

Formerly the second-largest carrier at DFW and one of the original
carriers from the Airport’s opening in 1974, Delta will now occupy four
gates in DFW’s Terminal E. Continental Airlines and Northwest Airlines
will each occupy three gates, while AeroMexico and Champion Air will also
continue to utilize gates in Terminal E.


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