"United backs off threat to sue Denver over lease"

Tuesday, August 19, 2003

United backs off threat to sue city over lease
Airline says progress being made in talks; suit deadline passes
By David Kesmodel
The Denver (CO) Rocky Mountain News


Bankrupt United Airlines is backing off its threat to sue Denver for not
making immediate improvements to United's lease at Denver International
Airport.

The giant carrier last month threatened a lawsuit if the city didn't act on
a list of demands, including starting a $50 million upgrade to a
commuter-jet facility, by Aug. 13.

The deadline passed last week without action by Denver.

United has no immediate plans to sue because it is seeing progress in
negotiations with Denver on the lease, airline spokesman Jeff Green said. He
declined to discuss details of the talks.

Green said the threat of legal action, stated by United's bankruptcy
attorneys in a letter to Denver on July 14, had been designed to move the
negotiations forward.

Denver's former mayor, Wellington Webb, destroyed the letter at a news
briefing, saying Denver would not be bullied by its dominant carrier.

New Mayor John Hickenlooper inherited the issue when he took office July 21.
The city won't comment on details of talks with United but agrees that
progress has been made.

Chicago-based United, which filed the industry's largest bankruptcy last
year, has until mid-December to negotiate airport leases.

In the July 14 letter to Denver, United said the city was required under the
current lease agreement to make the upgrade to United's commuter-jet
facility on Concourse B.

The carrier also insisted that Denver was obligated to reimburse United
about $20 million for improvements United made to an automated baggage
system, to make drainage repairs on a maintenance hangar and to lower fees
for baggage space.

Separately Monday, Green said United has sought bankruptcy- court approval
to renew its lease for a reservations center in Sterling, Va., near its hub
at Washington Dulles International Airport.

Green said the move is further confirmation of the carrier's plan to retain
its Dulles hub, despite speculation that it would be dropped.

Also Monday, United said it would announce today a promotion that allows
Colorado residents who buy two round-trip tickets to earn a free seating
upgrade on their next United flight, as well as a $25 gift certificate for
official Denver Broncos merchandise.

The tickets must be purchased from today through Oct. 15, and some
restrictions apply.

As part of the promotion, United will have a brass brand play at DIA today.
Also, former Bronco Mark Schlereth will sign autographs at the airport and
on the 16th Street Mall.


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