bond buyer conference, austin, txdallas/fort worth 139 beyond destinations sydney and brisbane 105...

DFW International Airport “Connecting the World” – An Update

Bond Buyer Conference, Austin, TXFebruary 14, 2011

Bond Buyer Conference, Austin TX, February 14, 2011

Overview

DFW OverviewAir Service Development HighlightsNew Use Agreement and Long Range Financial PlanTerminal Renewal and Improvement Program (TRIP)


DFW Airport Overview DFW Airport has seven runways and can accommodate simultaneously a combination of four takeoffs and landings.

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7 Runways5 TerminalsSkylink People Mover3rd largest airport based on operations7th largest based on passengers


DFW Airport Overview Jointly owned by the cities of Dallas and Fort Worth, DFW has built a huge infrastructure and still has 6,000 acres to grow.

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DFW Airport and the Economy Passenger traffic at DFW has increased consistently since 1990, with only two periods of decline.

Source: ASDNote: Includes Mainline and Regional Carriers

DFW Total Passengers (Millions)

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Impact of September 11th

Impact of the Global Recession


DFW Airport and the Economy A very strong local originating market allowed DFW to outperform most of its domestic competitors during the recession.

Annual Passenger Decline, 2009 vs. 2008, Percent

Source: Airports Council International


Air Service Development – International Destinations Announced service to 44 international destinations today, 6 more than last year at this time.

Destinations Currently Served by DFW

Destinations Targeted by DFW


Air Service Development – New Qantas Service The new route served by Qantas offers passengers 139 connections beyond DFW and 105 connections beyond Sydney and Brisbane.

Dallas/Fort Worth139 beyond destinations

Sydney and Brisbane105 beyond destinations


DFW Airport – A Metrics Driven Organization (FY10 Final Scorecard)

FY 2009 Actuals

FY 2010 Budget

FY 2010 Actuals

FY10 vs FY09

ActualsFY10 vs Budget

Core BusinessL1 Total Passengers (Ms) ** 55.9 55.5 56.4L2 International Passenger Destinations (1) 38 38 42L2 Total Landed Weights (Bs) 36.3 36.2 36.3L2 Cargo Landed Weights (Bs) 2.7 3.1 3.0

Cost CompetitiveL1 Total Airline Cost (Ms) ** $205.7 $215.3 $203.0L1 Airline Cost Per Enplanement (CPE)** $6.87 $7.29 $6.74L1 Total 102 Expenditure Budget (Ms) ** $616.9 $588.3 $575.1L1 Non-Airline Revenues per Enplanement ** $8.28 $8.13 $8.51L2 Full CPE Relative Ranking - Per Lrg. Hubs 1st of 13 Top quartile 1st of 13L2 Parking Revenues per Orig. Passenger $7.72 $7.50 $8.22L2 Concession Revenue per Enplanement (1) $1.71 $1.64 $1.78L2 Acres Leased 1,099 1,070 1,116L2 Underlying Bond Rating AA-/A1/A+ AA-/A1/A+ AA-/A1/A+

Customer SatisfactionL1 DFW's ACI Customer Survey Score** 4.175 4.150 4.194

O perational Excellence * *L1 % Level 1 Goals & Initiatives Achieved 80% 90% 96%L1 FAA 139 Uncorrectable Safety Deficiencies 0 0 0L1 Regulatory Enforcement Violations 0 0 0L1 M/WBE Goals (GS/Prof/Const) 29/36/39% 25/27/30% 30/35/34%

Employee Engagement * *L1 Engagement Index 67% 67% 73%L1 Engagement Survey Participation 86% 80% 86%

Levels 1 and 2 - Key Performance Indicators

Source: DFW Finance Department


New Use Agreement – Win/Win Arrangement

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10 year agreement“Hybrid” business model

Airlines pay landing fees and terminal rents based on DFW’s cost to provide those facilitiesDFW retains all non-airline revenue up to $60MAirlines provide downside protection if non-airline revenues do not hit $40 million.

Preapproved capital programTRIP$264M of other capital projects

Airlines get predictable cost for ten yearsDFW gains significant control over capital


New Use Agreement Focuses DFW to Achieve Two Goals

1. Keep Airline Cost s Competitive with Other AirportsDFW currently the lowest cost major-hub airport among competitive set (fully loaded CPE basis)Long range goal - Remain one of lowest cost airports in FY 2020

2. Grow net revenues from non-airline sources to reinvest in Airport

DFW expects to generate $60 million of net revenues in FY 2011 from concessions, rental car, parking, and commercial developmentLong range goal:

Double net revenues by FY 2020 Reduce need to borrow money for infrastructure in future

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FY 2011 Financial Plan

DFW recently published its first 10 year financial forecast of all revenues, expenses, capital and debt.Based on new Use Agreement.Track changes over the years.To be updated annually.Available on DFW’s web site.


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Terminal Renewal and Improvement Program (TRIP) DFW is embarking upon a $1.92 billion renovation of Terminals A, B, C and E.

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Enhanced Concessions

Improved Parking

Expanded Security Checkpoints

Upgraded Self-Service Ticketing


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Terminal Renewal and Improvement Program (TRIP)This renovation will take place between 2011 and 2017.

2012 - 2016

2014 - 2017

2011 - 20142011 - 2015


Debt Program - Assumptions

$2.7 billion of new debt for TRIP and other projects$3.6 billion outstanding

100% fixed rate; no SWAPs95% callable through November 1, 2013Plan to refund $2.3 billion for savings and restructuring

Financial Plan includes conservative debt interest rate assumptions Will explore variable rate programs

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Source: FY 2011 Financial Plan


TRIP - Debt Service DFW will have to borrow approximately $2.7 billion to finance the TRIP, and other projects, extending debt service through FY 2045.

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$0$50

$100$150$200$250$300$350$400$450$500

FY 1

1

FY 1

3

FY 1

5

FY 1

7

FY 1

9

FY 2

1

FY 2

3

FY 2

5

FY 2

7

FY 2

9

FY 3

1

FY 3

3

FY 3

5

FY 3

7

FY 3

9

FY 4

1

FY 4

3

FY 4

5

Debt Service (Millions)

Existing Debt Service After Refundings TRIP/Other Debt Service

Source: FY 2011 Financial Plan


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bond buyer conference, austin, txdallas/fort worth 139 beyond destinations sydney and brisbane 105...

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