Lessons from Texas on how an airport can stimulate an economy
The fastest-growing metropolitan region of the US, Dallas Fort Worth in north Texas, is hoping that the opening of a direct route between Dallas/Fort Worth (DFW) Airport and Dubai will stimulate trade and travel between the region and South Africa, as there is already a direct Johannesburg to Dubai route and both routes are oper- ated by the same airline, Emirates. “We think [South Africa] is a great market,” recently affirmed DFW Airport board of directors vice-chairperson Lily Biggins in Johannesburg. “We know there is a lot of pent-up demand. Our [ultimate] objective is a direct [DFW–Johannesburg] link.”
Dallas City deputy mayor (and currently acting mayor) Tennell Atkins points out that the region’s interest in South Africa is not new – it sent its first mission to this country in 2008. He highlights that his region is a hub for technology, manufacturing and transport and that it is already trading with South Africa.
Dallas and Forth Worth are two separate cities that, 40 years ago, agreed to create a joint airport to serve both of them and the surrounding region. That airport, originally (1974) regional but since 1985 international, is now one of the most important economic forces in north Texas. “The airport is the engine that drives the region,” affirms Atkins. “That’s why more businesses are investing in the region. When [Dallas and Forth Worth] formed this alliance, we made sure that all the [airport] revenues went back into the airport. It’s investment for the whole region. I think that’s a great model.”
“The two cities that own the airport don’t take any revenue away from it,” elucidates Biggins. “It stays on the airport. It’s all about supporting the traveller. It’s all about reinvesting in the infrastructure. Nobody takes any money off the property. It stays there.”
Atkins estimates the airport’s economic impact at $13-billion a year, but the Texas Department of Transportation puts it higher, at $15.7-billion yearly. It has also, the deputy mayor reports, directly created 285 000 jobs (of which about 62 000 are in the airport itself, including airport and airline staff). The airport also has an art collection worth $6-million.
DFW Airport is ranked fourth- busiest in the world in terms of operations (650 124 flights last year), eighth-busiest regarding passengers (58.6-million last year) and 35th in terms of cargo (663 302 t last year). It is used by 22 passenger and 18 cargo airlines and serves 50 international and 148 domestic destinations. (In 2010, it served 37 international destinations, but added nine in 2011 and four more last year.) Another four international routes will be added this year.
It has seven runways and five terminals and is the only airport where four aircraft can land or take off at the same time. The airport property covers 6 963 ha (larger than Manhattan Island, in New York), of which 2 104 ha is available for development. Located on the airport property are more than 100 oper- ating gas wells, two hotels, two 18-hole golf courses and more than 200 retail and food outlets.
Not surprisingly, then, 65% to 68% of DFW Airport’s income is from its nonaeronautical revenues. Of this, 75% is “given back” to the airlines to keep DFW a low-cost option for them, while the balance of 25% is used to maintain the infrastructure. It is currently busy with a $2.3-billion upgrade programme for its terminals, which started in 2011 and will conclude in 2017.
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