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D/FW Airport CEO sees need for 6th terminal; unworried by Wright Amendment expiring

By Nicholas Sakelaris
 –  Staff Writer, Dallas Business Journal

Updated

Dallas/Fort Worth International Airport could get even bigger with a sixth terminal to handle increased growth in international travel, Sean Donohue, the CEO of Dallas/Fort Worth International Airport, said Friday.

“A terminal F will likely be in our future,” Donohue said as he addressed more than 100 people at the North Dallas Chamber of Commerce luncheon at the Frontiers of Flight Museum at Dallas Love Field. “Given even the most conservative gross estimates, we foresee the airport serving almost 70 million customers annually by the end of the decade from the 60 million we serve today.”

Just three months into the job, this was one of Donohue’s first chances to talk to the public about his plans for the airport. Subjects included expanding and improving the airport, competing with Dallas Love Field after the Wright Amendment expires, growing international travel, improving security checkpoints and customs lines.

Construction

There are no concrete plans or timeline for when terminal F could be built, but there are plenty of other construction projects moving forward now.

The world’s fourth-busiest airport is building a new headquarters for its administration and finishing terminal renovation projects. In September, Dallas Area Rapid Transit is scheduled to  open a train station near Terminal A on the north end of the airport, connecting it to the Orange Line.

And Donohue announced that existing parking garages will be torn down and replaced with new ones that will use technology to make it easier for travelers to find empty parking spaces.

The Wright Amendment

With the  Wright Amendment set to expire in October, Donohue was asked what he thinks the impact of that will be on D/FW Airport.

“Are American and Southwest going to compete like hell? Sure they will,” Donohue said. “But they’ve been doing that for decades all over the country. When the restrictions come off and Southwest can fly anywhere they want domestically out of Love Field, it’s just going to be good for the consumer of this region.”

Southwest (NYSE: LUV) will be competing with Fort Worth-based American Airlines (Nasdaq: AAL) on routes throughout the country. For Southwest, that will include  new flights to Reagan National Airport and  LaGuardia Airport that were given up  by American to  settle a U.S. Department of Justice antitrust suit.

Donohue comes to D/FW Airport from Virgin Australia  and before that he worked for United Airlines.

“I’ve got experience on how airlines compete,” Donohue said. “When you have the largest airline in the world at D/FW and you’ve got the largest low-cost airline in the world at Love Field, it will be aggressive competition but I don’t see either one running from each other. “

Going international

D/FW Airport has added 20 new international destinations in the past three years and now serves 58 destinations on five continents, Donohue said. 

“Each of these ultra-long haul international services, think Australia, think Dubai, Shanghai, generate approximately $200 million in economic impact to the region purchasing goods and services,” Donohue said.

In 2014, the airport will add new destinations: Qatar nonstop service to Doha, Qatar; American Airlines nonstop service to Hong Kong and Shanghai, China and Etihad nonstop service to the United Arab Emirates.

Once Etihad starts service in December, all three major Middle East airlines will be operating out of D/FW Airport, Donohue said.

Emirates will fly more than 100 Airbus 380s, the world’s largest passenger plane, and is on pace to surpass American Airlines as the world’s largest airline, Donohue said.

“The growth in the Middle East, and it’s not originating in destination travel. It’s connecting travel, it’s something that’s going to change the dynamics of the entire aviation industry moving forward,” Donohue said. “We are absolutely delighted to have all three carriers at D/FW.”

Customs

The airport launched a new Automated Passport Control system to expedite the customs process for incoming international travelers. U.S. and Canadian citizens can use the new kiosks that scan the passport, ask a few questions and print a receipt.

“This system has proved so effective we now have other airports throughout the U.S. who are interested in purchasing this system from us,” Donohue said.

The airport also will pay overtime costs for customs employees to speed up a process that’s taking “far too long.”

“We’ve got to address that,” Donohue said. “D/FW Airport is actually one of three airports in the U.S. that we are spending our own money, we’re going up to $3 million this summer. We think it’s that important that we’re willing to put our money on the table.”