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DALLAS/FORT WORTH AIRPORT'S $75 MILLION JOINT REVENUES 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 27 /PRNewswire/ -- The cities of Dallas and Fort Worth, Texas, Dallas-Fort Worth Regional Airport's $75.75 million joint revenue bonds, series 1993A are rated `A+' by Fitch. The rating also applies to $998 million outstanding parity bonds. The credit trend is stable. This is the first time that Fitch has been asked to rate this issuer's bonds. The bonds are scheduled to sell for competitive bids on Oct. 27, 1993.
 The rating reflects the importance of the Dallas-Fort Worth Regional Airport (DFW) to its populous and strong service area, which provides a broad origination and destination (O&D) market, and to the national air transportation system as a key transfer point located in the center of the country. DFW is the currently the second busiest airport in the world; more than one-half of all airline passengers in Texas use the airport. It is presently anticipated that the Federal Aviation Administration (FAA) will provide funding for approximately 75 percent of the new east runway project from its Airport Improvement Fund (AIP) through both a letter of intent and entitlement grants, thereby underscoring the importance of DFW to the national system.
 Historically, the airport has exhibited solid financial operations and recently undertook a cost-containment program that resulted in a beneficial decrease in the landing fee rate of $.10 this year. Enplanement trends have averaged 4.3 percent annual growth over the past four years. Conservative enplanement growth forecasts estimate 3.0 percent average annual growth through 1998, during which the capital improvement plan calls for about $572 million in new projects resulting in projected cost per enplaned passenger increases of only about $.20 per passenger (assuming a $3 passenger facility charge throughout the period).
 Offsetting these credit strengths is DFW's risk of serving primarily as a hubbing facility for two airlines. In 1992, American Airlines accounted for 60 percent and Delta 28.5 percent of total enplanements at DFW. Only 35 percent of the traffic at DFW is currently O&D. Also, the airport's residual leases limit the upside revenue potential from airport operations as well as requiring Majority-In-Interest (MII) approval from the signatory airlines for all major projects. Finally, the airport's ability to proceed with its necessary capital expansion plans has been continually thwarted by ongoing litigation with the three cities in which it is located, although recent state legislation should clarify the disputed issues.
 -0- 10/27/93
 /CONTACT: Andrea R. Bozzo, 212-908-0515, or Rebecca Bachman, 212-908-0516, both of Fitch/


CO: ST: Texas IN: AIR SU: RTG

TS -- NY049 -- 7220 10/27/93 11:08 EDT
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Publication:PR Newswire
Date:Oct 27, 1993
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