Dallas/Fort Worth drop-off fee may signal trend

WASHINGTON -- Dallas/Fort Worth Airport (DFW) has started charging $1 to people who drive onto the airport to drop off travelers -- a move that drew some criticism but may be emblematic of the airlines' struggles to raise revenue amid falling business and rising security costs.

The airport, which said it charged a 50-cent drop-off fee for 16 years but discontinued it in 1999, brought it back earlier this month.

A spokesman said the airport brought back the fee because it is losing $6 million a year on operations and services associated with drop-offs.

"The cost to DFW for every car handled is approximately $2.42, and any loss is shouldered by the airlines that serve DFW," the spokesman said.

"The $1 drop-off fee doesn't cover the entire cost, but the airport knows it will help and believes the fee is fair," he added.

The airport's belief hasn't prevented criticism. Even before the airport board approved the fee this summer, Fort Worth Star-Telegram columnist Mitchell Schnurman complained the airport should not raise money "on the nickels and dimes of relatives who are dropping off Uncle Joe for his flight home to Omaha."

On TravelWeekly.com's forum, some agents in the Dallas-Fort Worth area are spouting off, too. One declared, "Next time, I'm gonna pay in pennies."

Airports, however, are caught in a squeeze. Many struggling airlines are pushing airports to cut costs or increase revenue from nonairline sources.

For example, Pittsburgh newspapers reported US Airways, negotiating with Pittsburgh and Pennsylvania officials about keeping its leases and hub there, has suggested offsetting some airport debt by raising hotel, sales and car rental taxes.

In another example, Northwest president Douglas Steenland suggested to U.S. and Canadian airport directors that they raise money by increasing parking fees, concession prices and rent for on-site car rental companies, said Stephen Van Beek, senior vice president for policy and strategic development at Airports Council International-North America.

Van Beek said airport directors weren't receptive. The goal of airports is to serve travelers, "not extract every last dollar out of them," he said.

Many airports have been moving the opposite way on concession prices, enforcing requirements that stores charge the same amount as their off-site locations because that seems to increase sales.

There have been parking rate increases. But that's also been difficult to do, Van Beek said, because of growing competition from off-airport parking services.

Faced with such constraints, airports are turning to other alternatives. Many have reduced workforces and are trying to attract more airlines. There also is a lot of discussion about increasing nonairline revenue -- but by getting customers to spend more at the airport by offering more goods and services, not by hiking prices, Van Beek said.

There also have been cooperative discussions with airlines about new models for risk-sharing, he said.

Las Vegas, for example, put in common-use check-in kiosks, which can be used by customers from multiple airlines. The airport buys and maintains the equipment, and the airline pays a fee for use of the machines.

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