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"United Frustrates Denver"
Tuesday, August 12, 2003
United Frustrates Denver
Airline Financial News
Frontier Airlines and Denver International Airport are frustrated with
United's indecision concerning its gates at the Colorado airport.
United operates more than 40 gates in the airport's B concourse and eight
gates in the A concourse. It has not told the city which gates it wants to
keep. Frontier wants 10 new gates added to the A concourse to expand its
operations.
Frontier outlined the airport's dilemma to the FAA and the airport told a
similar story to the United bankruptcy judge. If United rejects the leases,
then the airport could re-lease the gates. If United holds onto the gates,
then the airport faces a $300 million construction project to build more
gates.
The airline is doing some of its own wheeling-and-dealing. The airline said
before it decides on its Denver lease it wants a commitment to build a $65
million, 38-gate regional terminal at the east end of the B concourse,
reimbursement of $20 million spent on the failed automatic baggage system
and repairs to the aircraft maintenance facility. United has stopped making
debt payments on the hangar.
Tired of waiting, the airport on July 16 announced its plans to go ahead
with the A concourse expansion plan to meet Frontier's needs.
Days later, upset with the airport manager and United, Denver's new mayor
countered with a new plan. In exchange for a 22-year lease, the city would
build the regional terminal, build a new taxiway so United could park more
jets overnight, reconstruct the ticket counter area, fix the storm water
problem at the maintenance hangar, allow United to return unneeded space and
forgive $13 million in pre-petition debt. United would also give up the
gates in the A concourse for Frontier 's use so the building would not need
to be expanded.
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