Houston..er Dallas – we have a problem!

The famous line from Apollo 13 could apply to DFW, that huge airport halfway between Dallas and Ft Worth. They are embarking on a $2billion improvement program (read about it here). How are they going to pay for it? Simple: raise parking fees and figure out ways to screw the off airport parking operators. So, they are going to improve the airport on the back of those that elect to drive. Makes absolutely no sense to me.

I can imagine how they will take on the off airport operators, which offer parking services at budget pricing. They will simply tax them to death. Yep – If you want to drive you van on our airport and deliver your customers, you will pay and pay and pay. That will force the operators either out of business or force them to raise prices to a parity with the airport, which will have the same effect.

I'm told that airports even go after hotels and restaurants nearby. They justify it by saying that if the airport wasn't there, they wouldn't have any business, so they should get a piece of the action. WOW! I thought the purpose of an airport was to provide a place for planes to take off and land and a way to get people on and off them, not control the entire economy of the area.

I think the concept of having a modern, well run good looking airport is great. Fair enough. But shouldn't all the folks using the airport pay for it. If An airport has 50 million people using it every year why not simply charge them and additional five bucks each – generate a quarter of a billion, and build your upgrade. I know, I'm certain there are laws preventing it, but there shouldn't be. Airports should be built with money provided by those using it, the passengers and the airlines. Not the group that elects to park. Removing a person's choice of parking (by driving off airport parking out of business) can create more problems that it solves.

Remember what happened in Detroit. They raised the rates, and lost customers.

JVH

Comments

[EFT]

Parking at DFW is a deal....you can show up for your flight 30 mins beforehand and park next to the runway for $17 a day or park for the week in the further out lots for $8 a day. That is a bargain for parking compared to other major airports. A buck or two increase is not going to affect the average user or change the consumers' behavior for this airport.

Parking revenue should fund the improvements....it's what paid parking is about....right? You control the real estate, you should be able to profit off the real estate, within the limits of what the market will bear. That is what the parking industry is about.

[MC]

Actually much of the $$ to pay for airport improvements in the US is paid for by all of the users exactly as you suggest it should be. Most airports charge a PFC (passenger facility charge) of $2 or $3 that is added onto your ticket. That money, along with concessions and parking revenue, funds a large portion of airport improvements, usually excluding the runways & taxiways, and builds the ground transportation infrastructure that is used by the hotels and off airport parking companies.

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DFW carries with it a non intuitive business model.

15-20 years ago, my wife and i would attend the Sunday brunch at the Hilton adjacent to DFW airport, north end. There was never anyone in that Hotel on Sunday, I could never figure out how they stayed in business, nothing even around there, expect that airport.

I finally asked the guy one morning, who stays here? He replied that during the week, they were booked full up, you could not buy a room. But why, why would anyne stay here? Answer: DFW Airport. Businesses gather their teams from all over the country to a centrally located spot, and hold their conferences in a hotel conveniently located to nothing...nothing but that airport.

Nowadays, all kinds of entertainment and convention based hotels have opened adjacent to that airport land, the primary attraction still being...that airport.

Location, location, location.