US: Washington Dulles to lower airline costs with land deal
Washington Dulles International airport will use $237m from the sale of unused land on its western periphery to further lower airline costs. The Metropolitan Washington Airports Authority (MWAA) board approved the sale of 424 acres, acquired for the fourth runway that opened in 2008, to Digital Realty Trust for a new data centre at a meeting today. "The only thing the airport can do with the funds is re-invest them in airport activity – it's not roads or trains, it has to go to the benefit of airline operations," says Jack Potter, president of the airport operator, at the board meeting. That benefit will be further reducing the cost per enplanement, or the amount an airline pays to board a passenger on a flight, at Dulles, and not for capital improvements, MWAA confirms. Airline costs at Dulles are forecast to fall 6% to $17.82 per passenger this year, benefitting from $35m in revenues transferred from MWAA's other airport Ronald Reagan Washington National and a $25m grant from the Commonwealth of Virginia. The drop continues the trend that began in 2014, when CPE peaked at $26.55 per passenger. MWAA has not estimated the impact of the land sale yet but, based on the amount alone, the deal could have a more significant impact than either the revenue transfer or grant. Lower costs are likely music to United Airlines' ears. The largest carrier at Dulles, the airline is evaluating increasing the number of flights at the airport by half by creating two new connecting banks, or when a significant number of flights arrive and depart within a short time frame.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-09-19/general/us-washington-dulles-to-lower-airline-costs-with-land-deal
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US: Washington Dulles to lower airline costs with land deal
Washington Dulles International airport will use $237m from the sale of unused land on its western periphery to further lower airline costs. The Metropolitan Washington Airports Authority (MWAA) board approved the sale of 424 acres, acquired for the fourth runway that opened in 2008, to Digital Realty Trust for a new data centre at a meeting today. "The only thing the airport can do with the funds is re-invest them in airport activity – it's not roads or trains, it has to go to the benefit of airline operations," says Jack Potter, president of the airport operator, at the board meeting. That benefit will be further reducing the cost per enplanement, or the amount an airline pays to board a passenger on a flight, at Dulles, and not for capital improvements, MWAA confirms. Airline costs at Dulles are forecast to fall 6% to $17.82 per passenger this year, benefitting from $35m in revenues transferred from MWAA's other airport Ronald Reagan Washington National and a $25m grant from the Commonwealth of Virginia. The drop continues the trend that began in 2014, when CPE peaked at $26.55 per passenger. MWAA has not estimated the impact of the land sale yet but, based on the amount alone, the deal could have a more significant impact than either the revenue transfer or grant. Lower costs are likely music to United Airlines' ears. The largest carrier at Dulles, the airline is evaluating increasing the number of flights at the airport by half by creating two new connecting banks, or when a significant number of flights arrive and depart within a short time frame.<br/>
