"DIA panel to look at possible governance changes"

Friday, October 15, 2004

DIA panel to look at possible changes
Outcome could be independent group to oversee airport
By David Kesmodel
The Denver (CO) Rocky Mountain News


Denver Mayor John Hickenlooper said Thursday he has formed a panel to review
how other cities manage their airports and to look at possible changes at
Denver International Airport.

The city's aviation working group, composed of business leaders and elected
officials, will compare governance structures at other airports to DIA's and
study DIA's role in land use and economic development.

The group also will examine airline industry trends "to ensure DIA's ongoing
economic viability," the city said in a news release.

"Clearly the (airport) management team, employees and airlines are doing a
tremendous job, but if there are ways to do things even better, we not only
want to know about them, but we want to involve our regional partners in the
conversation," Hickenlooper said in a statement.

The panel's co-chairmen are Denver City Councilman Michael Hancock, whose
district includes DIA; Del Hock, retired chief executive officer of Public
Service Company of Colorado; and Elmer Jackson, certified public accountant
and managing partner with the accounting firm Jackson, Ashby & Goldstine.

The panel's 20-plus members include Tom Healy, formerly a managing director
of sales at United Airlines; Jeff Potter, CEO of Frontier Airlines; Ed
Tauer, mayor of Aurora; and Don Sturm, owner of the Sturm Financial Group
and former director at Continental Airlines.

DIA's co-managers, Turner West and Vicki Braunagel, also are on the panel
because of their positions.

One possible outcome of the group's work would be to turn DIA over to an
independent authority, a governance model used in many U.S. cities, said
Peter Chapman, Denver's economic growth policy specialist and a member of
the new committee.

Today, DIA is part of the city's government, funded by its own enterprise
fund and run by a manager-appointed by the mayor. It must follow city
purchasing and hiring rules.

West and Braunagel, appointed by Hickenlooper on an interim basis, are
expected to continue as co-directors of the airport regardless of whether a
governance change takes place, Chapman said.

"Vicki and Turner are in fact still technically acting directors of
aviation," he said. "However, they're not going anywhere. We consider them
bona fide aviation co-managers."

Governance will be just one part of the review, he emphasized. A key area to
explore will be "best practices for airport operations."

DIA is the nation's fifth-busiest airport. Its passenger traffic is up 15
percent this year, buoyed in part by the growth of Denver- based Frontier
Airlines. The airport, which must repay $4 billion in debt, faces some
uncertainty because United Airlines, its biggest carrier, is in
bankruptcy-court protection.

The aviation group will meet at least once each month for up to six months,
the city said. The first meeting is scheduled for Wednesday.


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