Republic seeking incentives???

[airlinepilot]

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.

 

[Full of LUV]

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.

 

[SWA/FO]

Porch - where you been?

 

[Willy21]

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.

 

[Bookingsareup]

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

No

 

[donkeykong]

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.

 

[tathagatha]

They should announce this on the PA in the DIA terminals and record the cheers of the Pax and Employees!!!

 

[airlinepilot]

The perfect excuse....to move ..DIA didn't give us what we wanted...when all along...he planned on moving the ops to INDY

 

[Dornier 335]

Can someone move this back to the regional forum?

 

[Anonymous2]

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?

 

[SLOTH]

The perfect excuse....to move ..DIA didn't give us what we wanted...when all along...he planned on moving the ops to INDY

The move mat have been planned all along, but don't think that a move is cheap. Not only does the move itself cost money, but it'll also affect the company's productivity for quite some time because many of the employees' lives have been severely altered. I believe that BB is bluffing and hoping for DIA officials to blink.

 

[Seaknight1]

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.

Depends on if they have an agreement with any of the other tenants. Delta has in it's agreement with the Kenton County Airport Board(CVG) that if it offers incentives to other tenant airlines or prospective airline tenants, it must offer the same to Delta. That is why they can't attract new or low cost carriers into CVG.

 

[Beantown]

If Repbulic moves then SW would be a huge winner. They save 170 mil and still get rid of the competition in Denver. Unfortunately for SW I think this is a total bluff. Denver is very expensive to operate at and BB is trying to take advantage of being in BK to lower them. Nothing new there.

 

[BJK]

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

Ask Frontier. It is my understanding the UAL managed to work a deal with DIA during BK as would be expected. I believe F9 then asked for relief of their own (prior to BK) and was told to pound sand. Chances are pretty good LUV got some luvin from Denver when they reentered the market.