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Republic seeking incentives???

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airlinepilot

Well-known member
Joined
Apr 19, 2002
Posts
481
Not a lawyer but if DIA gives incentives to one airline do they also have to provide the same to other airlines? This from a Denver newspaper

You have to chalk it up to business/political posturing but Republic CEO Brian Bedford has hinted that if Denver can't provide incentives Republic may have to relocate Frontier and its employees elsewhere.Of course this has a lot to do with posturing and getting the best deal for your business but it has to have caught the attention of the City and County of Denver officials. Frontier is the second largest airline at Denver International and makes up a majority of the gates on Concourse A. Not only is Frontier a big contributor to the airport but to the city and state economy as well.
That could all change as Republic has no real ties and investment in DIA other than the airline they just acquired. For them to say lets relocate isn't as big an issue. Its a fear that has surely crept into the minds of high level officials with the City and County after the bid was announced and one that became even more alarming once Southwest announced a bid and advised they would just absorb the airline into their own.
Republic came to Denver today to meet with Frontier Airlines employees and to turn up the pressure a little on the powers that be. The biggest sticking point is the fuel and parts tax charged to all the airlines. Republic is also looking at facilities and specifically a maintenance hangar. Before Frontier went bankrupt they had entered an agreement with Colorado Springs to build a heavy maintenance hangar that ended being shelved. Frontier currently shares a hangar with Continental at DIA but that may not be adequate especially since Republic has facilities and infrastructure at its home base in Indianapolis.
It will be interesting to see what Mayor Hickenlooper and his staff come up with and even more interesting will be the reaction of the other airlines based at DIA. They will be keeping an eye out on what the city offers as they will want and expect the same. Either way its a very interesting time in Denver and at the airport.
 
Back to the future....

Not a lawyer but if DIA gives incentives to one airline do they also have to provide the same to other airlines? This from a Denver newspaper

You have to chalk it up to business/political posturing but Republic CEO Brian Bedford has hinted that if Denver can't provide incentives Republic may have to relocate Frontier and its employees elsewhere.Of course this has a lot to do with posturing and getting the best deal for your business but it has to have caught the attention of the City and County of Denver officials. Frontier is the second largest airline at Denver International and makes up a majority of the gates on Concourse A. Not only is Frontier a big contributor to the airport but to the city and state economy as well.
That could all change as Republic has no real ties and investment in DIA other than the airline they just acquired. For them to say lets relocate isn't as big an issue. Its a fear that has surely crept into the minds of high level officials with the City and County after the bid was announced and one that became even more alarming once Southwest announced a bid and advised they would just absorb the airline into their own.
Republic came to Denver today to meet with Frontier Airlines employees and to turn up the pressure a little on the powers that be. The biggest sticking point is the fuel and parts tax charged to all the airlines. Republic is also looking at facilities and specifically a maintenance hangar. Before Frontier went bankrupt they had entered an agreement with Colorado Springs to build a heavy maintenance hangar that ended being shelved. Frontier currently shares a hangar with Continental at DIA but that may not be adequate especially since Republic has facilities and infrastructure at its home base in Indianapolis.
It will be interesting to see what Mayor Hickenlooper and his staff come up with and even more interesting will be the reaction of the other airlines based at DIA. They will be keeping an eye out on what the city offers as they will want and expect the same. Either way its a very interesting time in Denver and at the airport.

Reminds me of when DAL closed their DFW hub in circa 2003. They were paying some major rent for all their gates and DFW refused to change terms, but after they left, DFW went to SWA with a free rent for 5 years offer along with some money thrown in for them to advertise their move. Airports are a business as well it turns out and everyone has a hand to play.
 
Porch - where you been?
 
This could be the excuse that Bedford is looking for. DIA won't give us any incentives so we will be forced to move all operations to MKE. It is all DIA's fault, when in fact moving the airbus to MKE was the plan all along.
 
Back in 03, Tim H (YX CEO) went to county and state officials in WI to cry "poor mouth." It worked. I don't remember the terms but it gave Midwest a huge tax break. BB is doing the same in CO.
 
The perfect excuse....to move ..DIA didn't give us what we wanted...when all along...he planned on moving the ops to INDY
 
By the way, where are those additional E90's coming from? I think the first two were second-hand weren't they? But what about the ones after those two?
 

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