Denver Airport Strikes Gate Deal with United, Frontier

November 11, 2003

Denver Airport Strikes Gate Deal with United, Frontier

By Robert Weller
The Associated Press

    DENVER -- City officials on Sunday hailed an agreement with the two
largest airlines at Denver International Airport (DIA), United and
Frontier, settling a dispute about how many gates each of the hub
carriers will have there.
    Frontier has said it needs more gates to accommodate its growing
fleet, and had threatened to move some of its operations to another
airport if more gates were not available at DIA.
    As part of the deal, the city will build a $40-million, 38-gate
regional jet facility to be used by United and its regional partners.
The city also will build new ticket counters for United, a $15-million
project. Denver will also build an extension on Frontier's concourse
for about $42.5 million.
    "Neither side got everything they want, but this will work," Mayor
John Hickenlooper said.
    United has been reluctant to surrender any of its gates, saying they
are needed for a new low-cost airline the nation's second-largest
carrier plans to launch from Denver next year.
    Pete McDonald, United's executive vice president for operations,
called the agreement "a good one for Denver, for Denver International
Airport and for the millions of airline customers who fly in and out
of DIA each year." As part of the agreement United will not ask a
bankruptcy court judge to end its Denver lease.
    Frontier spokesman Andrew Hudson said United will relinquish three
gates during the expansion. Once the expanded terminal is completed,
Denver-based Frontier will have 20 gates, nine more than it has now.
    "It's not the optimal solution but it is a good compromise," Hudson
said. "Critical to our growth plan is having gate access at DIA. "
    While some other discount carriers had shied away from DIA because of
expensive landing fees, Frontier has been the up-and-coming airline at
the airport. It increased its share of traffic from 10 percent last
year to 13 percent in 2003.


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