Four years ago American Airlines and Dallas – Fort Worth airport came to agreement on terminal improvements that included piecemealing a new terminal F and refreshing terminal C. At the time this was estimated to cost $3 to $3.5 billion.
Capital construction was part of master lease negotiations. The old lease expired in 2020, but was extended due to the pandemic. With American representing over 85% of passenger traffic, they have the lion’s share of say. And together with their joint venture partners they’re able to exercise de facto control. So it was American on hand with the CEO of the airport when they announced a new master lease today, that finally included plans for the new terminal and existing terminal refresh.
Here’s where the new terminal will go:
The plan calls for spending $1.63 billion on building a 15 gate terminal F. The long-term project has been for 24 gates. The plan was originally to complete the project by 2025, but that’s no longer in the cards since it hasn’t started yet.
- This project looks like a huge compromise. The rest of Dallas – Fort Worth is built with local travelers in mind. But there doesn’t appear to be a parking garage across from this terminal, and there may not even be check-in and TSA. It looks built for connections, or long schlepps from another terminal.
- And it’s still being priced at over $100 million per gate. While the terminal will be new, it looks like it’ll be inconvenient for anyone originating or terminating in Dallas.
Today, we're thrilled to announce a new 10-year Use and Lease Agreement with @AmericanAir, includeing $4.8 billion in capital investments for the construction of Terminal F, the renovation of Terminal C and other significant modernization projects.
MORE: https://t.co/vjLxjBIu05 pic.twitter.com/Oe1PKP4j9k
— DFW Airport (@DFWAirport) May 16, 2023
Dilapidated terminal C, which was supposed to be renovated along with A, B and E as part of the airport’s previous TRIP program, will finally see renovations. In total the airport expects to spend $2.72 billion to include expanding check-in areas, refreshing terminal C, and adding gates to the A and C concourses, along with making changes to the roadways leading into the airport.
Before the pandemic the airport’s CEO suggested pouring billions into terminal C was a bad idea because you’d still have a 50 year old facility. That airport wanted to build a new terminal F, then tear down and replace terminal C. Now of course the airport and local politicians are solidly behind the plan, declaring victory, since it’s the best they were going to do. Ultimately, though, American has agreed to more than the $500 million they signed onto for terminal C renovation back in 2019.
The airport expects about 78 million passengers in 2023, up from 75 million in 2019. They need to expand over the long term, and this lets them do it, but we don’t yet know what the project will entail in its entirety or when we’ll see it come to fruition. Projects take longer than you’d expect, even accounting for knowing that they take longer than you’d expect. Even in Texas.
[…] Airport to Build a New Terminal: From View From the Wing, it looks like DFW will finally build a Terminal F and remodel Terminal C. The space is already […]