B U I L D I N G A FUTURE TOGETHER:
DFW INTERNATIONAL AIRPOR T STRATEGIC PLAN
“I’m excited to
announce that our
updated strategic
plan for the Airport
is complete.”
Jeffrey P. Fegan
Chief Executive Officer
A New Plan for Our Future
The 21st century has already shown to be one of tremendous change. We live in a rapidly
evolving society that imposes itself not only on our everyday personal routines, but also
in the way DFW Airport conducts business.
The strategic plan is a simple, yet critical document that captures the Airport’s mission
and goals, and lays out broad approaches for achieving them over time. Just as time
has changed the world around us, our strategic plan was also due for some changes.
Our new strategic plan both recognizes the realities of today and outlines our approach
to taking DFW to even greater heights tomorrow. In the process of developing the new
plan, our leadership team arrived at new vision and mission statements for the Airport:
Vision: DFW International Airport – Connecting the World
Mission: DFW International Airport will provide our Customers outstanding facilities
and services, expanding global access and economic benefits to those we serve.
And along with the vision and mission comes a core set of “results” that we will strive
to achieve in support of our primary business goal: grow the core business of domestic
and international passenger and cargo airline service. We will achieve this by focusing
on four additional key results: keep DFW cost competitive, create customer satisfaction,
deliver operational excellence, and foster employee engagement.
As part of this process, we’ve also identified the Airport’s key “beliefs” that will drive
how we achieve our strategic objectives. These belief statements will be highlighted
at the back of the plan.
Inside, you will find the key initiatives outlined by the Airport’s senior management team
to support the four key results that strengthen DFW’s ability to grow its core business.
We’ve also included a quick reference guide that summarizes the Airport’s vision, mission,
primary business goal, four key results, and beliefs.
We are, first and foremost, an airport – a place where people come to board a flight.
Everything else serves to make us better at meeting that need. And our new strategic
plan is designed to be our constant beacon on that journey.
Sincerely,
Jeffrey P. Fegan
Chief Executive Officer
1
STRATEGIC PLAN
OVERVIEW
DALLAS/FORT WORTH
INTERNATIONAL AIRPORT’S
PRIMARY BUSINESS GOAL IS TO
GROW THE CORE BUSINESS OF
DOMESTIC AND INTERNATIONAL
PASSENGER AND CARGO
AIRLINE SERVICE.
2
DFW will accomplish this by achieving four key results:
•
Keep DFW Cost Competitive
•
Create Customer Satisfaction
•
Deliver Operational Excellence
•
Foster Employee Engagement
The following sections provide historical context and future
strategies that will enable DFW to grow the core business
through the achievement of the four key strategic focus areas.
3
Grow the Core Business
Historical Perspective: The Airline Industry after September 11, 2001 – A New Reality
The September 11, 2001 terrorist attacks changed the nature of the airline industry,
both domestically and internationally, in profound ways.
Domestically, two hubs were eliminated, four airlines filed for bankruptcy, capacity
levels were reduced, and airline salaries and expenses were cut dramatically. Delta
Air Lines, United Airlines, US Airways and Northwest Airlines declared bankruptcy.
US Airways actually filed bankruptcy twice and was only able to exit their second
bankruptcy by means of a merger with America West. Pittsburgh International Airport
lost its only hub carrier, US Airways, and DFW lost its secondary hub air carrier, Delta
Air Lines. As a result of the reduction in hubs and bankruptcies, the major legacy
carriers have reduced their capacity and grounded 650 aircraft since 2001.
On the international front, several carriers ceased to exist and other carriers required
significant restructuring in order to survive. Swissair and SABENA – flag carriers of
Switzerland and Belgium, respectively – were both declared insolvent and subsequently
shut down. Although new carriers have replaced the former carriers, they do not have
the size and scope of their predecessors.
4
September 11 resulted in several significant events at DFW Airport.
American Airlines – American Airlines, DFW’s largest air carrier, is critical to the
Airport’s success. American is one of only two major legacy carriers that navigated
the difficult times since September 11 without filing for bankruptcy protection. The
airline achieved this by significantly reducing its operating cost structure, eliminating
losing or marginal routes, and slashing wages for both union and non-union personnel.
American also greatly reduced capacity at its Lambert-St. Louis International Airport
hub after it merged with bankrupt TWA. While this initially had a positive impact on
DFW, American has retired 210 aircraft since 2001 and has no planes on order,
which will impact DFW into the future.
Delta Air Lines Hub Elimination – In fall 2004, Delta Air Lines announced plans to
eliminate its DFW hub operation at DFW. At that time, the airline was operating 256
daily flights from 31 gates to 70 destinations. By the end of January 2005, Delta was
operating only 22 flights from four gates to three destinations. DFW purchased the
leasehold rights for the entire terminal in January 2005 for $7 million to ensure control
of the facility in the event Delta filed bankruptcy, which subsequently occurred.
The gate purchase allowed DFW to relocate all of the non-hub airlines except United
Airlines to Terminal E and provided room for other airlines to increase service from
DFW. American also added flights and destinations to offset Delta’s dehubbing. DFW
was able to retain and grow the total numbers of passengers and destinations served,
but saw declines in the total numbers of operations and landed weights.
New International Terminal D and Skylink – In 2006, DFW completed its $2.7 billion
Capital Development Program and opened its new International Terminal D and
Skylink on time and within budget. The new 2.1-million-square-foot terminal added
28 gates and 8,800 parking spaces. Skylink replaced the former people mover
system, and passengers can now connect between terminals in a matter of minutes.
The dramatically improved connection times have allowed both DFW and American
to optimize their hub operations.
The Wright Amendment Compromise – The Wright Amendment, which was enacted
into law in 1980, limited nonstop service from Dallas Love Field to the four states
contiguous to Texas and prohibited airlines from offering through-ticket sales to points
beyond the four adjoining states, later amended to eight states. In summer 2006, the
Wright Amendment was repealed. An agreement was signed between DFW Airport,
Southwest Airlines, and the cities of Dallas and Fort Worth allowing airlines to sell
through-tickets to any state, provided the flight made an intermediate stop in an
existing Wright Amendment state. Beginning in 2014, airlines can sell tickets on direct
flights to any destination. The agreement also capped the number of gates at Love
Field at 20, limiting the possibility of flights moving from DFW to Love Field. Price
competition between Southwest and the airlines operating from DFW has resulted in
an increase in originating and destination passengers at DFW.
5
The Airline Industry and DFW Today
According to the Air Transport Association, U.S. carriers
enplaned nearly 745 million passengers in 2006, almost
12 percent more than the 666 million passengers who
boarded in 2000. The major U.S. airlines have recovered
financially and are expected to report net profits of
approximately $4 billion in 2007. The industry has
rebounded from the significant losses of the past five
years through major capacity rationalization and cost
reductions.
DFW IS CURRENTLY
THE THIRD BUSIEST
AIRPORT IN THE
WORLD BASED
DFW is currently the third busiest airport in the world
based on number of operations, and the sixth busiest
in terms of passengers. DFW’s passenger levels are
ON NUMBER OF
nearly back to the peak levels seen in 2000. The
elimination of the Delta hub provided opportunities
for American Airlines and other carriers to fill the
void left by Delta. The non-hub carriers serving DFW
expanded in selected markets, while American Airlines
expanded significantly, adding 19 new destinations
from late 2004 through 2005.
SIXTH BUSIEST
OPERATIONS, AND
IN TERMS OF
PASSENGERS.
DFW Airport Total Passenger Growth (in millions)
70
61.1
60
54.4
50
50.4
51.6
1993
1994
55.1
56.9
57.0
57.6
56.4
51.7
52.5
2002
2003
58.6
59.1
60.1
59.8
2004
2005
2006
2007
40
30
20
10
1995
1996
1997
1998
1999
2000
2001
6
Destinations Served by American Airlines at DFW Airport
American Airlines – American Airlines and its regional partner, American Eagle,
currently provide service to approximately 85 percent of DFW’s passengers,
up from 71 percent in 2000. American represents about 75 percent of total
landed weight at DFW. American has expanded its route network since the
decline of Delta. American currently serves 166 destinations and has added
34 new main terminal gates at DFW since 1995. This was made possible by
the opening of Terminal D and relocation of the non-hub airlines, except for
United Airlines, from Terminal B to Terminal E. This move allowed American
Eagle to operate from Terminal B on jet bridge contact gates and close their
inefficient satellite operation in Terminal A.
During this past year, major U.S. airlines expanded their passenger levels by
more than 2 percent; however, American Airlines reduced its systemwide
passenger volumes by 2 percent over the same timeframe. This trend is
expected to continue for a few years as American Airlines continues to
reduce capacity, negotiate new labor agreements and delay decisions on
new aircraft orders. Until these issues are resolved, DFW cannot expect
to experience the same growth levels as the rest of the industry.
7
Non-Hub Legacy Airlines – DFW is
currently served by seven non-hub
legacy airlines, providing 88
frequencies per day to 19 cities.
These legacy airlines have typically
served DFW to and from their major
hubs around the country and carry
approximately 8 percent of DFW
travelers. These airlines offer DFW
customers great competitive service
options to destinations worldwide.
DFW will continue to market to these
airlines to increase service, but growth
opportunities are somewhat limited
as these carriers will likely grow
capacity at their own hub cities rather
than at DFW.
Low-Cost Carriers – Five low-cost
carriers (LCCs) currently provide
service from DFW to 13 cities with
49 daily flights. This represents
approximately 6 percent of DFW
travelers. DFW’s second largest
carrier, after the combined American
group, is US Airways – a low-cost
carrier. In 2006, US Airways handled
over 1.6 million passengers, or
approximately 2.7 percent of the
total passenger traffic at DFW.
Of the major LCCs, only JetBlue
and Southwest do not currently fly
out of DFW, and Southwest cannot
fly out of DFW because of the new
Wright Amendment compromise.
LCCs provide valuable service options
to DFW travelers, and new service
from an LCC carrier typically results
in lower airfares and increased
passenger volumes. DFW will
continue to aggressively market to
LCCs to attract new carriers and
grow LCC destinations.
Foreign-Flag Airlines – Foreign-flag airlines offer
important international services that connect DFW
with the world. Six foreign-flag airlines offer 52 weekly
trips to six destinations and carry approximately
9 percent of DFW’s total international traffic.
Foreign-flag carriers enhance DFW’s international
reputation by offering global networks through their
principal hubs overseas. For example, by flying to
Frankfurt on Lufthansa, passengers can connect to 59
destinations on Lufthansa’s network through Europe,
Africa, the Middle East and the Indian Sub-Continent.
In spring 2007, the U.S. and the European Union agreed
to a phased-in approach to Open Skies, resulting in
the elimination of the rule that prohibited non-stop
service from DFW to London Heathrow. Historically,
DFW travelers were sent to London’s Gatwick airport, a
second-tier airport that offered little connecting service
beyond London. In June 2007, British Airways and
American Airlines announced they would transition their
service to Heathrow from Gatwick in March 2008. Since
Heathrow is British Airways’ largest hub, DFW travelers
can expect a full range of competitive travel options
that were previously unavailable to them via Gatwick.
Growth opportunities in this category are generally
good, as the international marketplace continues to
grow and foreign-based carriers begin to receive new
deliveries of previously ordered long-range aircraft.
DFW will be very active in recruiting foreign-flag
airlines by offering new incentive programs to attract
airlines to fly to new international destinations. Not
only will travelers gain access to new global networks,
but trade, economic and business development will
also be stimulated for the region.
GROWTH OPPORTUNITIES
ARE GOOD AS THE INTERNATIONAL
MARKETPLACE CONTINUES
TO GROW.
8
9
Cargo – Cargo, the great “unseen passenger,” has been
a key contributor to the growth of DFW and the industry,
primarily due to the emerging global economies in Asia
and the increased demand for time-sensitive freight
deliveries. Cargo currently represents approximately
9 percent of total landed weight and is expected to
continue to grow in the future. This success is driven by
the strength of the regional economy, DFW’s central
geographic location and great highway access, and
DFW’s low operating cost environment.
UPS has a regional hub at DFW and FedEx has a large
presence. These airlines are known as integrators because
they integrate air cargo with truck delivery to the customer’s
door. In 2006, integrators handled approximately 45 percent
of the total cargo at DFW. An additional 25 percent of
cargo is provided by freighter airlines that move everything
from small integrated circuits and chips to automobiles,
oil field equipment, and other large freight. Freighter
airlines provide airport-to-airport service and allow freight
forwarders to move the cargo to its final destination on
trucks. This category has grown from 17 percent to 25
percent since 2001.
DFW will continue to aggressively market to cargo airlines.
The Airport expects cargo services to grow in direct
proportion to growth in worldwide global economies, and
primarily between DFW and Asia for the heavy freighters.
Another positive sign is that the major cargo airlines have
additional aircraft on order.
CARGO CURRENTLY
REPRESENTS APPROXIMATELY
9 PERCENT OF TOTAL
LANDED WEIGHT AND IS
EXPECTED TO CONTINUE TO
GROW IN THE FUTURE.
10
DFW – A Look Forward
The future holds significant opportunities for DFW,
as well as many challenges. Some of the challenges
are controllable, some can be influenced, and for others
DFW will just have to plan for the various outcomes
and react to the actions of third parties. For example,
a major challenge that DFW does not control is the labor
negotiations between American Airlines and its pilots’
union. A speedy negotiation would be advantageous,
but a protracted negotiation could result in adverse
traffic trends with little or no growth for several years.
Additionally, DFW will have to wait for American to begin
to place orders for the new generation aircraft to replace
its aging fleet. After these issues are resolved, DFW
should be primed for sustained growth for many years.
DFW has targeted international growth as a top priority.
In this effort, DFW has contracted with the Dallas and
Fort Worth Convention and Visitors Bureaus to help
market the DFW brand worldwide. The initial phase of
the effort is a $5 million program focused on strategic
geographic regions such as Mexico and South America,
as well as South Korea and other Asian markets. In
addition, and in support of international air service
growth, the Airport plans to develop and implement a
new air service incentive program that enables DFW to
better attract new air carriers and enhance its global
route network. This effort is designed to make the DFW
proposition the most attractive in the world.
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Keep DFW Cost Competitive
DFW has always prided itself on being a low-cost airport, supporting the goal of growing
the core business. DFW’s cost per enplanement (CPE) averaged approximately $2.50
for the decade preceding the completion of the $2.7 billion Capital Development
Program (CDP). The Airport’s CPE increased to more than $7.50 in the year following
the completion of the CDP, due to incremental operating costs and debt service
associated with the new facilities. Although this was a significant change, DFW still
remains cost competitive with the other airports in its competitive set.
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Cost Per Enplaned Passenger Comparison
DFW Airport vs. Benchmarked Airports
Newark*
New York (JFK)*
Miami
San Francisco*
Boston
Seattle-Tacoma
New York (LGA)**
Houston (Bush)*
Denver
Chicago-O’Hare
Los Angeles*
Dallas-Fort Worth
$7.18 (FY 2008)
Philadelphia
Minneapolis-St. Paul**
Detroit
Orlando
Las Vegas**
Phoenix
Atlanta
Charlotte-Douglas**
5
Current
10
15
20
25
30
Forecast
Source: Jacobs Consulting / *Forecasted amounts not available / **Forecasted amounts lower than current levels
In the graph above, gray represents each airport’s current CPE; red reflects the projected
increase in CPE after completion of each airport’s CDP. DFW’s goal is to gradually improve
its cost competitiveness against these airports as they complete their capital programs.
DFW has significant runway and terminal capacity and will not need to add new facilities
for many years. Therefore, DFW should not need to issue any new debt or significantly
increase operating costs due to expansion.
For all airports, CPE is calculated by dividing the passenger airline cost to operate at
an airport by the number of enplanements. Airline cost equals the annual budget less
non-airline revenues. The airlines are expected to pay $224 million (35 percent) of DFW’s
$640 million budget in FY 2008. The remaining $416 million will be generated from nonairline sources. DFW’s goal is to reduce or contain airline cost.
13
In order to improve DFW’s competitive position, the
Airport has developed three strategic objectives and
12 strategic initiatives to focus on containing/reducing
costs and growing non-airline revenue (focused on
parking, concessions and commercial development).
Management has developed individual business plans
for each of its revenue-producing business units.
The Parking business unit will provide new
products and services based on customer needs,
and use yield management techniques to grow
profit per originating passenger each year. DFW
will also explore expanding parking facilities to
meet increased demand as part of the Airport
Development Plan (ADP) process (described in
the Operational Excellence section).
The Concessions business unit will continue to
maximize utilization of available space in the terminals
and increase the diversity of food, beverage, retail,
passenger amenity and advertising options based
on customer preferences to increase its profit per
enplaned passenger each year.
FY 2008 Non-Airline Revenues (in millions)
Concessions
$76.0* Commercial Development
$21.4
PFCs
$119.1
Parking
$106.6
Other
$82.8
*includes car rental
The Commercial Development business
unit has developed a long-range Use
Plan for the development of an
additional 5,200 acres of land on the
Airport, including cargo, retail,
commercial, warehouse and
entertainment districts. There are
significant opportunities for DFW to
grow its commercial development
revenues, because the Airport only
has 1,000 acres of developed property
today. Management will also focus on
completing tax-sharing arrangements
with the cities of Coppell and
Grapevine so that development may
begin in those areas.
DFW received a $186 million bonus
from Chesapeake Energy Company in
October 2006 for the right to drill for
natural gas on the Airport. Chesapeake
also agreed to pay DFW a 25 percent
royalty on natural gas revenues. These
royalty payments should begin in FY
2008 and could potentially be a major
revenue stream to DFW in the future.
Natural gas royalty payments will help
fund future capital development and
help the Airport avoid the need to issue
additional long-term debt for a number
of years.
Finally, another significant strategic
initiative in this area focuses on
renegotiating the 33-year-old Use and
Lease Agreement between DFW and
its signatory air carriers that expires in
December 2009. The new agreement
will impact the business relationship
between DFW and its signatory airlines
for the next decade or more. It is
critical that the new agreement enables
management to focus on DFW’s primary
goal – to Grow the Core Business.
14
THANKS TO CONTINUAL FOCUS ON CUSTOMER
SATISFACTION, DFW WAS RANKED “HIGHEST IN
CUSTOMER SATISFACTION FOR LARGE AIRPORTS.”
Create Customer Satisfaction
Everyone at the Airport understands that customers have a choice when they travel.
One of DFW’s key goals is to consistently deliver excellent customer service that creates
customer loyalty and ensures that passengers continue to choose DFW as their preferred
connecting hub or origination and destination airport. Satisfied customers mean repeat
customers, and this satisfaction contributes to DFW’s primary business goal – to Grow the
Core Business. To keep DFW focused on achieving this result, the Airport has identified
two strategic objectives and six strategic initiatives included in this plan.
DFW has invested heavily in market research to better understand the needs and desires
of domestic, international, local and connecting passengers. This research enables DFW to
put various programs in place to improve customer satisfaction ratings, such as new signage,
improved lighting, restroom upgrades, gate area improvements, and exciting new food
and retail options throughout the Airport. The most significant improvement came in 2006
with the opening of Terminal D and the Skylink people mover, which dramatically enhanced
the customer experience and resulted in overwhelmingly positive customer feedback.
Thanks to the Airport’s dedicated focus on customer satisfaction, DFW was ranked “Highest
in Customer Satisfaction for Large Airports” by the research firm J.D. Power and Associates
in June 2007. In addition, in a survey of more than 200,000 travelers conducted by Airports
Council International, DFW was named “Best Airport in the Americas” for customer service.
These awards are recognition of a focused and motivated team of individuals…the DFW
team! DFW will continue to use research to understand the constantly changing needs
of its customers and benchmark its performance against other airports around the world.
DFW will ensure that its facilities represent the DFW brand and are put to the highest and
best use for satisfying customers. DFW recently formed a Customer Service Council, a
multi-disciplinary team comprised of high-level individuals from key departments, to focus
on maintaining the highest customer satisfaction ratings possible.
Finally, DFW will expand its branding efforts, making the DFW brand well known in the
international marketplace, in support of the vision of “Connecting the World.”
15
Deliver Operational Excellence
Operational Excellence is the cornerstone of DFW’s success and enhances the Airport’s
ability to “Grow the Core Business.” DFW has been recognized nationally for its
safety, security, environmental stewardship, sustainability, vendor diversity and other
operating practices. A few examples follow:
First major airport to open after the tragedy of September 11
Achieved perfect scores on its FAA safety audit for five years in a row
• Received prestigious National Environmental Performance Track Award
• Awarded best Concessions Department by Airport Revenue News in 2007
• Voted World’s Best Cargo Airport by Air Cargo World in 2006
• Only airport to provide international fire training services to other airports
• Numerous Small and Emerging Business awards for programs and achievements
•
•
16
OPERATIONAL EXCELLENCE IS THE
CORNERSTONE OF DFW’S SUCCESS AND
ENHANCES THE AIRPORT’S ABILITY TO
“GROW THE CORE BUSINESS.”
Although these accolades demonstrate that DFW is the best-managed airport in
the world, management is committed to continuous improvement and operational
excellence throughout all business practices and processes. DFW will make effective
use of Improvement Councils and technology to continue to maintain its leadership
edge. To this end, senior management has identified seven strategic objectives and
18 strategic initiatives to ensure DFW remains focused on Operational Excellence. Each
department will establish and track Operational Excellence metrics, such as the number
of uncorrectable Code of Federal Regulations safety discrepancies from Federal Aviation
Administration audits, number of environmental infractions, percent Minority/Womenowned Business Enterprises utilization, IT system uptime, etc.
From a security standpoint, passengers and airlines expect that every aspect of an airport’s
operations will be safe and secure. Internally, DFW is expected to be an innovator and
a leader in this area. DFW will continue to ensure it has practices in place to recognize
and act on existing and emerging threats/risks to ensure the safety of the public and
employees, protect critical assets, ensure business continuity and recover quickly from
incidents that may occur.
DFW is committed to the principle of sustainability, which requires a holistic view of the
planning, design, construction, operation and maintenance of a facility so that decisions
include an analysis of life-cycle costs, customer needs, and environmental impact. DFW
will finish updating the Airport Development Plan (ADP) in 2008. The ADP is critical
because it lays the foundation for a sustainable capital replacement and expansion
program for the next 10 to 20 years. There is a significant amount of infrastructure to be
upgraded over the next 10 years. Terminals A, B, C and E were built more than 30 years
ago, as were a significant portion of the roads, utilities and parking garages. DFW will
also need to plan for the expansion of the terminals and parking structures as the core
business grows. In addition, DFW will need to complete expansion of the on-Airport road
system and the mass transit connections with DART and the Fort Worth T over the next
decade. The ADP will be financially constrained to ensure the DFW capital program is
affordable within the timeframes outlined.
DFW relies heavily on its vendor partners and suppliers to help the Airport design, build,
maintain and operate this great Airport. Therefore, it is critical that DFW maintains an
efficient and inclusive supply chain that quickly and cost-effectively obtains products and
services as needed.
17
Foster Employee Engagement
Growing the core business and delivering on the
promises of operational excellence, customer
satisfaction and cost containment are impossible
without engaged employees. DFW is extremely
proud of its highly talented and dedicated team of
employees. To ensure the Airport remains focused
on engagement, it has identified four strategic
objectives and six strategic initiatives for this key
result. DFW has conducted employee engagement
surveys for the past three years to measure key
engagement factors such as empowerment,
teamwork and recognition. DFW continues to make
positive strides in its efforts to drive greater
employee engagement.
One of the most significant initiatives in this area is
the implementation of a Total Rewards program
that will ensure that the benefits DFW provides are
aligned between what is valued by current and future
employees and the cost to provide those benefits.
DFW is also focused on providing employees with
a comprehensive wellness program, LiveWell, which
includes the opening of a new Wellness Center to
promote a healthy lifestyle for employees.
DFW’s future success is also predicated on having
a diverse workforce that experiences excellent internal
communications, and is immersed in a continuous
learning environment to promote professional growth
and sustainable leadership capabilities. DFW is
striving to create an organizational culture that is
consistent with the core beliefs. DFW knows that
with high employee engagement and the right
culture, the Airport will be viewed as a preferred
employer for current and future employees.
This is essential to achieve the Airport’s mission.
GROWING THE
CORE BUSINESS
IS IMPOSSIBLE
WITHOUT
ENGAGED
EMPLOYEES.
18
The Future
None of the tenets of this Strategic Plan stand in isolation; each impacts the others and
provides the foundation for the future of this great Airport. Only when employees are truly
engaged and working in a collaborative manner will DFW achieve operational excellence
and deliver outstanding customer service. Underlying this is the Airport’s financial position.
DFW, like other airports, faces the constant pressure to upgrade aging infrastructure,
develop new facilities and customer amenities, and improve security – all while keeping
costs as low as possible. DFW must maintain a competitive cost structure by containing
costs and increasing non-airline revenues. If DFW manages all of these items, it will
continue to “Grow the Core Business.”
Finally, as DFW completes its 33rd year of operation, its economic impact on the North
Texas region has grown from $14 billion to $16.6 billion in just the past four years. The
future is certain to result in continued growth and increased prosperity for the region.
DFW is positioned to be the premier global gateway between North America and the rest
of the world, thanks to the Airport’s many competitive advantages such as the state-ofthe-art international Terminal D and Skylink, the best people mover system in the world. In
addition, the Airport’s domestic and international hub network, DFW’s central location,
the growth of North Texas, and the future growth of the global economy also present
many opportunities. Because of these, and the incredible people of DFW, the Airport will
achieve the new vision of “DFW International Airport – Connecting the World.”
VISION STATEMENT
DFW INTERNATIONAL AIRPORT – CONNECTING THE WORLD
MISSION STATEMENT
DFW INTERNATIONAL AIRPORT WILL PROVIDE OUR
CUSTOMERS OUTSTANDING FACILITIES AND SERVICES,
EXPANDING GLOBAL ACCESS AND ECONOMIC
BENEFITS TO THOSE WE SERVE.
19
PRIMARY
BUSINESS GOAL:
GROW THE CORE
BUSINESS OF
DOMESTIC AND
INTERNATIONAL
PASSENGER AND
CARGO AIRLINE
SERVICE.
20
OBJECTIVE:
Expand business development.
INITIATIVES:
Maintain a competitive airline incentive
program to attract new passenger and
cargo airlines and increase international
•
and domestic destinations.
Aggressively market DFW’s advantages
to domestic and international passenger
and cargo airlines through increased direct
sales calls, focused marketing campaigns,
and increased presence at major industry
events/conferences, and by leveraging
the efforts of Convention and Visitors
Bureaus and Chambers of Commerce.
•
Deliver high-quality analytical research to
provide airline executives with high-impact
decision-making tools.
•
21
1
KEY RESULT 1:
KEEP DFW
COST
COMPETITIVE
By keeping the airlines’ costs low,
they are more likely to initiate or
expand air service at DFW.
22
1
“Maintaining a cost-effective operation will enable us to attract new carriers at competitive
rates. I am proud to be part of Parking’s operation – a major revenue contributor. As Parking
further understands the needs, wants and interests of our customers, our customer loyalty
continues to grow. Our front line and management are committed to a world-class service.”
Aslam Durrani
Parking Operations Shift Supervisor
23
OBJECTIVE:
OBJECTIVE:
Maintain a competitive
cost structure and a
strong financial position.
Grow profitability of
passenger-dependent
businesses.
INITIATIVES:
INITIATIVES:
Renegotiate an Airline Use
Agreement that achieves the
goals established by the Board
of Directors and Executive
Management.
•
•
Strengthen DFW’s financial
position by diversifying revenues,
increasing reserves and reducing
debt as appropriate.
•
Implement initiatives to reduce
or contain the growth of operating
expenses.
•
Parking – Enhance yield
management techniques, ensure
quality customer care, implement
new parking products and
services, and increase industry
outreach to drive a higher
percentage of customers to use
DFW parking.
Concessions – Based on
customer preferences, ensure
desired mix of food, beverage,
retail, passenger amenity
and advertising options by
implementing new concepts
and optimizing the use of
concessionable space.
•
Rental Car Center – Implement
new concepts based on customer
preferences to ensure desired
mix of products and services and
to optimize profits. •
24
OBJECTIVE:
Grow profitability of
non-passenger-dependent
businesses that achieve
the established
financial returns.
INITIATIVES:
Natural Gas – Execute the
natural gas exploration program
to maximize revenue and ensure
safety and compatibility with
existing and future operations and
development, while maintaining
DFW’s declared standard of
environmental excellence.
•
Commercial Development,
Taxiway Access – Globally
promote the development of
airline hangars and air-cargo and
logistics facilities and operations,
including, in the near term, the
East Cargo area.
•
Commercial Development – Globally
market, develop and lease, or enter
into business arrangements to
develop and lease, the commercially
available land at DFW, including,
in the near term, International
Commerce Park, Southgate Plaza,
114 Retail areas and Passport Park.
•
Hotels – Continue to achieve the
positive operating and customer
satisfaction results of the Grand
Hyatt Hotel and explore other hotel
options on the DFW campus.
•
Negotiate favorable tax-sharing
arrangements with Coppell
and Grapevine to allow further
development of all property in their
city limits.
•
Evaluate and implement other
business opportunities that diversify
DFW’s revenue stream, achieve the
required financial returns, leverage
the DFW talent base, and are
consistent with DFW’s mission. •
25
2
KEY RESULT 2:
CREATE
CUSTOMER
SATISFACTION
Building customer loyalty creates a
demand for the DFW experience.
Airlines see that demand and consider
adding air service.
26
2
“Loyal customers satisfied with their DFW experience give airlines the assurance they seek
when considering whether to add new air service. Customers know they can trust the J.D.
Power and Associates ranking of DFW as ‘Highest in Customer Satisfaction for Large
Airports.’ And they’ll keep coming back for more.”
Juan Ponce
Ground Transportation Shift Supervisor
27
Yolanda Black
Ambassador Program Administrative Assistant
“Our customer service makes us No. 1 in the world. By providing friendly,
knowledgeable Ambassador volunteers in the terminals who give personal
one-on-one assistance to our traveling public seven days a week, we make
sure help is only a smile away.”
28
OBJECTIVE:
OBJECTIVE:
Meet or exceed
customers’ expectations
through the delivery of
excellent service.
Expand DFW’s
brand to the global
marketplace.
INITIATIVES:
INITIATIVES:
Identify customers’ preferences
and needs, and benchmark DFW’s
performance against other domestic
and international airports through
regular surveys.
•
Provide an excellent, high-quality
operating environment that
promotes the highest and best use
of DFW’s facilities.
•
Create a positive global brand
awareness of DFW’s economic
opportunity with a consistent
worldwide message.
•
Ensure that the customer
experience is consistent with
DFW’s brand attributes.
•
Identify new avenues to extend
DFW’s positive brand identity and
exposure.
•
Implement solutions to ensure
delivery of an excellent customer
experience.
•
DFW will ensure that the customer
experience is consistent with its
brand attributes:
•
•
•
•
•
•
Professional
World-class/international
Not trendy, frivolous or regional
Leading-edge
Unique
Caring/friendly/responsive
29
3
KEY RESULT 3:
DELIVER
OPERATIONAL
EXCELLENCE
In striving for excellence in all areas of
the business, DFW will earn a positive
reputation among airlines worldwide.
30
3
“From Environmental to Engineering, DFW has been recognized for raising the bar in operational
excellence. In a post 9-11 world, there is no such thing as maintaining the minimum security
standards. Airlines know that when they partner with DFW, they’re getting police and fire
departments who are setting the standard for worldwide safety.”
Police Sergeant Kara Lusty
Department of Public Safety
31
Jud Piner
Insource Facilities
Manager
“Maintaining long-term
sustainability is core to
DFW’s basic infrastructure.
The effectiveness of Asset
Management’s work ensures
that our customers have
a safe and well-managed
environment for travel
and work.”
OBJECTIVE:
Achieve excellence
in airport safety
and security.
INITIATIVES:
Continually update and practice
DFW’s comprehensive Emergency
Management Program to ensure
business continuity and recovery
from disasters or incidents that
occur on or near DFW.
•
Reach out to stakeholders to
recognize and act on existing and
emerging threats/risks to ensure the
safety of the public and employees
and to protect critical assets.
•
Develop and implement an Airportwide Safety Management System
to ensure safety compliance with
the Code of Federal Regulations
(CFR), Part 139.
•
32
OBJECTIVE:
Sustainability: Plan, program,
design, construct, operate,
maintain and manage DFW’s
facilities, equipment, and
infrastructure in a costeffective, customer-focused
and environmentallyresponsible manner.
INITIATIVES:
Develop, communicate and
implement the sustainability policy,
principles and standards so that
DFW’s employees, contractors and
tenants understand, embrace and
implement sustainability in their
work environment.
•
Continuously update the Airport Development Plan
(VFR/2030) and long-range Financial Plan to support
the affordability, sustainability, growth and synergies of
all business activity at DFW.
•
Airport Facility Expansion – Identify and construct new DFW facilities and infrastructure necessary to support DFW’s future growth, including Terminal F, perimeter taxiways, east side fuel farm and new parking structures.
Access Roadway and Mass Transit Expansion – Identify and construct new DFW infrastructure necessary to support DFW’s future development including the East-West DFW connector, Royal Lane Extension, Walnut Hill Extension, and the
mass transit connections between the Fort Worth T and DART and DFW.
Airport Facility Replacement – Assess DFW’s aging infrastructure, terminals, facilities and technology systems, and implement programs to ensure timely, cost-effective and sustainable replacement or restoration of these assets.
Utilities Systems – Complete capacity and condition assessments of potable water, sanitary sewer, non- potable water, and electric and natural gas systems, and implement programs to ensure timely, cost-
effective and sustainable replacement or restoration.
33
Jackie Hunt
Facilities Contracts
Specialist
“Maintaining the
heating and cooling
systems for the
Airport is crucial to
the comfort of our
passengers and
employees.”
OBJECTIVE:
Ensure an efficient and
inclusive supply chain.
INITIATIVES:
Continue to evolve and implement effective
Disadvantaged Business Enterprises (DBE)
and Minority/Women-Owned Business
Enterprise (M/WBE) programs.
•
Partner with North Central Texas Council
of Governments (NCTCOG) to update the
Availability Disparity Study to ensure that
DFW’s M/WBE program is legally supportable.
Cathy Romero
Streamline and automate the supply chain
process to enhance responsiveness and costeffectiveness, while ensuring compliance
“Excellence starts with
functional practicality.
Making sure critical
department supplies
reach their destination
on time supports the
efforts of employees
Airport-wide.”
•
•
with applicable regulations.
Develop and implement process to
evaluate and assess vendor performance.
•
Materials
& Warehouse
Supervisor
34
OBJECTIVE:
Continuously improve
DFW’s business processes.
INITIATIVES:
Implement a systematic
measurement and reporting
system, using continuous
forecasting and benchmarking,
that allows management to
monitor progress and quickly
modify strategic priorities.
•
•
Utilize Improvement Councils
(e.g., the Sustainable Enterprise
Asset Management System
and Capital Project Process
Improvement Councils) to review
and improve DFW’s strategic
business processes.
35
Jimmy Justice
IT Network Specialist
“The computer systems I
support ensure that DFW is
up to date with new and
emerging technologies that
will enable us to support our
customers now and into
the future.”
OBJECTIVE:
Implement technology
and communication
systems to ensure the
availability, connectivity,
timely delivery, integrity
and business continuity
of critical applications
and information
throughout the DFW
campus.
INITIATIVES:
Provide new telecommunications
systems and functionality for DFW
facilities and campus through a
new telecommunications contract.
•
Ensure business continuity and
disaster recovery capabilities for
all critical information technology
systems by developing a new
Tier 3 data center.
•
Ensure network connectivity of
customer information and security
systems throughout the terminals
and DFW campus by providing
needed infrastructure.
•
36
OBJECTIVE:
OBJECTIVE:
Implement and
formalize elements
of an enterprise risk
management and
business continuity
philosophy at DFW
to promote ongoing
review, evaluation
and prioritization of
significant risks that
impact DFW.
Proactively engage
external stakeholders
to achieve DFW’s goals
and objectives.
INITIATIVES:
Develop external stakeholder
support for DFW’s vision of being
a global economic gateway,
connecting the world.
•
Develop and consistently
communicate DFW’s strategic
messages to community and
business leaders and other
stakeholders, passengers and
employees.
•
Pursue media coverage to
support the DFW brand,
enhance DFW’s reputation as
an industry leader and promote
DFW’s operational excellence.
•
Cultivate long-standing and new
relationships with local, state and
Federal officials to strengthen
DFW’s influence on issues that
affect DFW.
•
37
4
KEY RESULT 4:
FOSTER
EMPLOYEE
ENGAGEMENT
With engaged employees,
DFW can achieve its objectives
well into the future.
38
4
“Employee Engagement takes the DFW work experience to a new level. It allows
the Airport to take care of the employees while the employees are taking care
of the Airport. I work on the United Way and Diversity committees, which gives me
the chance to interact with people on a personal, not just professional, level.
This increases morale and makes DFW feel more like a family unit.”
Tia Hatcher
Lead Accountant
39
OBJECTIVE:
Ensure that the
workforce is engaged,
healthy, inclusive and
diverse.
INITIATIVES:
Implement initiatives to enhance
employees’ contribution toward
DFW’s goals.
•
•
Execute comprehensive internal
communication programs to
educate employees on Airportwide initiatives, including in the
near term the new Strategic Plan,
LiveWell, Sustainability, VFR/2030
and diversity.
Implement a comprehensive
Health and Wellness Initiative
(LiveWell), including in the near
term the operation of a new
Wellness Center.
•
Conduct analysis and update
Total Rewards program to create
alignment between the benefits
employees value and the cost of
•
compensation and benefits.
Fully integrate inclusion
practices to ensure workforce
diversity.
•
Update the Performance
Management process to ensure that
individual employee objectives are
aligned with desired organizational
results and metrics.
•
OBJECTIVE:
Enhance the continuous
learning environment
by providing education,
training and career
development opportunities.
INITIATIVES:
Ensure alignment of all technical,
managerial and leadership training
initiatives.
•
Establish internal job posting
program to increase awareness
of career opportunities.
•
40
OBJECTIVE:
OBJECTIVE:
Develop sustainable
leadership capabilities
by implementing talent
review and successionplanning initiatives.
Create an organizational
culture consistent with
DFW beliefs by effectively
aligning policies,
processes and systems to
reinforce the beliefs.
INITIATIVES:
Continue providing leading-edge
training and development
opportunities for leaders.
•
Develop and implement program to
address results of Senior Management
Talent review process.
•
•
Implement Succession Planning process.
•
Initiative workforce planning process.
INITIATIVES:
Conduct review of all policies and
procedures to ensure alignment with
Strategic Plan.
•
Update leadership competencies to
ensure they reflect beliefs.
•
Drive organizational change by
including beliefs in the all-employee
strategic business plan training.
•
41
DFW BELIEFS:
At DFW Airport, our beliefs take us to new heights. We demonstrate our beliefs each
day. They inspire our actions and our behaviors, and help us achieve our results.
They are the foundation that makes our people and our Airport thrive and succeed.
You’re Important!
I value you, your unique contributions and your success.
Own It!
I own the DFW experience and I do the right things to achieve results.
Step Up!
I overcome obstacles and influence outcomes.
Reach Out!
I collaborate with others to build trust and mutual success.
Innovation Wins!
I create leading-edge solutions that set the standard.
42