South - "Mini Wright Amendment" - Monopolizing Valet Parking @ DFW

Here's some excerpts from an e-mail I just received from the owner of one of the privately-run valet parking operators:


[...]So let's talk bailouts at D/FW Airport.

In June the D/FW Airport Board approved a financial bailout for the California parking company (PCI) that operates the D/FW branded valet parking (you know, the guys that say “There's Only One”). The Board waived the minimum annual guarantee that PCI agreed to in the contract, and the percentage fee PCI pays to the airport was reduced by 33.3%.

Here's the part you're not going to like.

This past week the D/FW Airport Board approved a 25% increase in the fees that (customers of off-airport valet companies) have to pay for the right to choose (an off-airport entity) as (their) valet service. That's right. The airport's DFW branded valet company's fees went down 33%, (while fees charged to off-airport operators) went up 25%. I guess they need your money to pay for all the big banners, and carpeted parking slots, and $10 per day valet parking coupons (which independent operators are restricted from having).

The truth is, this has been brewing for some time. I've been holding off notifying you to see how the airport was going to respond to the financial results of their in-house valet project.

What are those results? PCI, the airport's valet contractor from California, lost $2.1M on $2.4M in revenues its first year in business. That's a loss of 87% on revenue. D/FW Airport also may have lost approximately $1.1M on the valet project based on information we have obtained through the Texas Public Information Act (information even the Airport Board has not been shown).

Instead of acknowledging the failure of this project, and allowing the successful off-airport valet companies [...] to take up the slack, D/FW Airport has responded by placing operating restrictions on the free-enterprise providers, and by using their regulatory authority to increase the financial and operating disparity between their government-supported operation and the independent valet companies. If you want a more detailed explanation of the systematic steps the airport is taking to eliminate competition in this market, click on this link. (http://www.freedomparkdfw.com/industryfactsheet.aspx)

But the bottom line is that they are increasing your fees to pay for their failed project. I personally believe that in order for their valet project to succeed they will ultimately need to eliminate all other valet options and establish a monopoly in the airport valet service industry at D/FW Airport. I believe that if the airport's Parking Business Unit is able to regulate the industry without any public accountability, then their valet motto will become a reality: "There's Only One." In fact that is exactly what one of their marketing memos states as a goal: “To build a fence around parking business from going to off-airport.” (June 9, 2008)

HKG_Flyer1, that will be a sad day, not only for you and for me. It will be a sad day for private enterprise in North Texas. The message to free enterprise will be: If you innovate for the benefit of the North Texas traveler, take risk, invest capital, develop a market, work hard to serve that market, and are successful in your efforts, DFW Airport will use its regulatory authority to usurp your innovation and seize control of that market. What country are we in?

I've appealed to the airport staff, with no results. So it's up to you.

If you want to insure that you always have a choice of service providers in a fair market, you are going to need to let the Airport Board and staff know how you feel. You are their customer. They exist to serve you. If you reside in the city limits of Dallas or Fort Worth you might also want to contact your city council member or mayor.

You can email the D/FW Airport Board and staff, or call them. The email addresses and phone numbers are listed below. Better yet, take a few minutes to defend our free enterprise system and your right to chose, and come to the next D/FW Airport Board meeting. You can contact the Board secretary, Donna Schnell, at dschnell@dfwairport.com to register as a speaker. You'll have 3 minutes to talk. The next meeting is at 8:30 AM on Thursday, September 3, at the DFW Airport administrative offices. I will be there.

Thanks for your support, and for being an off-airport valet parking customer.

Jeff Fegan, CEO
DFW International Airport
3200 East Airfield Drive
DFW Airport, TX 75261
(972) 973-5200
jfegan@dfwairport.com

Ken Buchanan, Executive Vice President - Revenue Management
DFW International Airport
3200 East Airfield Drive
DFW Airport, TX 75261
(972) 973-5225
kenbuchanan@dfwairport.com

Armin Cruz, Vice President - Parking
DFW International Airport
3200 East Airfield Drive
DFW Airport, TX 75261
(972) 973-4850
acruz@dfwairport.com

Lillie M. Biggins
Member, D/FW Airport Board
Harris Methodist Fort Worth
1301 Pennsylvania Ave.
Fort Worth, TX 76104
(817) 250-1200
lilliebiggins@texashealthcare.cor

Robert Hsueh
Secretary, D/FW Airport Board
Law Offices of Robert Hsueh
4201 Spring Valley Road; Ste. 1102
Dallas, TX, 75244-3619
(972) 239-5888
dschnell@dfwairport.com

Tom Leppert
Mayor, City of Dallas
Dallas City Hall
1500 Marilla Street, Room 5EN
Dallas, TX 75201-6390
(214) 670-4054
http://www.ci.dallas.tx.us/forms/mcc/mayor_mail_form.htm

Mike Moncrief
Mayor, City of Fort Worth
1000 Throckmorton St
Fort Worth, TX 76102
(817) 392-6118
Mike.moncrief@fortworthgov.org

Francisco Hernandez
Vice Chair, D/FW Airport Board
Law Offices of Francisco Hernandez
800 W Weatherford
Fort Worth, TX, 76102
(817) 335-2331
francisco@texasmexicolaw.com

Benjamin Muro
Chairman, D/FW Airport Board
Acme Brick
2821 West 7th Street
Fort Worth, TX 76107-2288
(817) 332-4101
bmuro@brick.com

Bernice Washington
Member, D/FW Airport Board
BJW Consulting Group, LLC
18352 Dallas Parkway ste. 136 PMB 340
Dallas Tx 75287 6842
(972) 407-9090
bernice@bernicewashington.com

Brenda Reyes
Member, D/FW Airport Board
Arriba Solutions
6333 E. Mockingbird Lane # 147-779
Dallas Tx 75214
(214) 727-7295
breyes@prodigy.net

Betty J. Culbreath
Member, D/FW Airport Board
P.O. Box 764588
Dallas Tx 75376
(214) 374-9100
bettyculbreath@yahoo.com

Forrest Smith
Member, D/FW Airport Board
Forrest Smith
3232 McKinney Ave
Dallas, TX 75204
(214) 740-1413
forrestsmith@wforrestsmith.com

Marilyn J. DeVoe
Vice President – Dallas/Fort Worth
American Airlines
P.O. Box 619616
DFW Airport, TX 75261-9616
(817) 963-1234

Media Contacts

Cheryl Hall
Dallas Morning News
cherylhall@dallasnews.com

Jack Fink
Channel 11 News
jackf@ktvt.com

Bennett Cunningham
Channel 11 News
bennettc@ktvt.com

Eric Torbenson
Dallas Morning News
etorbenson@dallasnews.com

Byron Okada
Fort Worth Star Telegram
okada@star-telegram.com[/FONT][/SIZE]

1. I fear any thread with "Wright Amendment" in its title.
2. This is not an AA-specific topic.

This is not an AA-specific topic.
Under the DFW Airport operating agreement:
1) AA gets roughly 86% of the profits (if any) attributable to this business; and
2) AA has the apparent ability to direct the airport to abandon this policy.

Also, the substantial majority of impacted customers are AA passengers (and I'm gonna take a wild guess that you're not one of them ;) ).

To say that airport parking is an airline-specific issue is a stretch, at best.

You guessed wrong.

To say that airport parking is an airline-specific issue is a stretch, at best.
The extraordinarily close operating relationship between DFW Airport and AA is without equal. AA could stop this is in an instant, if they so chose... I can't think of another airport where they hold such power over airport operating policies.

You guessed wrong.
I [i]am surprised if indeed you truly are an AA customer that uses valet parking at DFW, yet react with indifference to the prospect of a $7 - $8/day increase in your parking rate.

2. This is not an AA-specific topic.

How so? It's main effect is on AA passengers. DFW is AA's largest hub :rolleyes:

Is that the same parking operator who was complaining about this earlier?

And, this is not AA specific since it affects passengers on every airline out of DFW. And there are a few besides AA.

AA could stop this is in an instant, if they so chose

Can you cite any instance where AA exerted any influence over or even expressed any opinion about DFW parking rates?

DFW's contract with Pepsi affects more people than its contract with its valet parking contractor.

Although relevant to many AA flyers, this topic is also relevant to others who park at DFW. As such, we'll move this over to the South forum and will leave a permanent redirect here in the AA forum.

Also note this thread already started in the South forum:
http://www.flyertalk.com/forum/south/982408-dfw-parking-rate-increase-oct-09-a.html

Finally, unnecessary interpersonal exchanges and responses thereto have been removed. Debate the topic, not the poster.

dstan
AA Forum Co-Moderator