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Old Oct 15, 2014 | 3:18 pm
  #49  
Bagels
 
Join Date: Oct 2002
Posts: 2,039
Originally Posted by dilbertsdaddy
Seems like there are fewer Chili's in airports than there used to be. Wonder what is going on....?
At DTW, just a change in vendors. HMSHost has exclusive rights to airport-branded Starbucks, Chilli's, etc. In its design stages, Northwest Airlines managed Midfield's concessions program; at that time, HMSHost was reluctant to license its exclusive brands unless it was managing the concession program itself. NW was also stipulating street pricing, which made many options including HMSHost's uneconomical.

After 9/11, many vendors withdrew from the Midfield project. When the terminal opened in early 2002, there were oodles of vacancies and lack of dining choices was an early common complaint. Ultimately, NW/DTW eased up on the street pricing stipulation, but were forced into signing up less-known (sometimes unique, like PB&J -- which is part of the food court owned by the folks behind Mediterranean Grill) vendors. Again, this was a common complaint; ultimately, DTW licensed several HMSHost (and other) brands.

Many contracts are up for renewal and DL has pushed for higher-end options (without any pricing stipulation, of course) within the terminal. This is partially done to appease passengers, who -- if paying 'airport surcharges' - - increasingly desire higher end establishments. It's also done to increase the revenues earned by the airport... which, in turn, lower (limit) DL's rent payments.

The debt related to the construction of the terminal facilities at DTW is funded with PFC, but a couple times in recent years DTW has fallen short of sufficient PFC to service the debt. Airlines have pushed for the airport to raise parking and retail fees rather than theirs. Soon, they'll push for $7 PFC.
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