difete
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Source: Chicago Business (Crain's)
United Airlines is giving up six gates it leases at the Denver International Airport and in return is getting a new regional jet facility and forgiveness for $110 million in debt owed on a problematic baggage system it no longer uses.
The carrier will on July 1 relinquish one gate used for its low-cost Ted operations at the airport's concourse A and will exit the remaining five gates in the next nine to 12 months. Ted flights will operate from concourse B, where United Airlines leases more than 40 gates.
Frontier Airlines, which had been looking to expand at the Denver airport, will take over the United Airlines gates.
"The chief advantage is for our customers as we will have all of our flights taking off out of one terminal," said Brandon Borrman, a spokesman for United Airlines. It also helps that the airport will pay off United Airlines' debt from an automated baggage system that has plagued th e airline and the Denver airport since its installation in the early 1990s. The multi-million dollar system which was requested by United Airlines and was supposed to be used by all flight operators, delayed the opening of the new Denver airport several times. In the end, United used the system only for outgoing flights until last year.
United Airlines will also gain a new $41.5 million regional jet facility that is a smaller version of one proposed in 2003.
"This is a win-win situation for the airport and for both airlines," Turner West, manager of aviation at Denver International Airport, said in a statement. "United gets the facility it needs to increase its regional jet flights to Denver, Frontier gets the gates it needs to accommodate its growing passenger load and aircraft fleet, and DIA gets maximum operational flexibility."
By allowing Frontier Airlines to lease United Airlines' gates, the Denver International Airport will save a n estimated $116 million it would have spent to build new gates to meet Frontier Airlines' growing demand.
Mr. Borrman said United is in the process of installing dual jet ways that will allow passengers to simultaneously load from the front and back door of an aircraft. As each jet way is added in concourse B, United will release a gate from concourse A.
"It obviously speeds loading and unloading time and we can get more flights at the gates," he said.
United Airlines is giving up six gates it leases at the Denver International Airport and in return is getting a new regional jet facility and forgiveness for $110 million in debt owed on a problematic baggage system it no longer uses.
The carrier will on July 1 relinquish one gate used for its low-cost Ted operations at the airport's concourse A and will exit the remaining five gates in the next nine to 12 months. Ted flights will operate from concourse B, where United Airlines leases more than 40 gates.
Frontier Airlines, which had been looking to expand at the Denver airport, will take over the United Airlines gates.
"The chief advantage is for our customers as we will have all of our flights taking off out of one terminal," said Brandon Borrman, a spokesman for United Airlines. It also helps that the airport will pay off United Airlines' debt from an automated baggage system that has plagued th e airline and the Denver airport since its installation in the early 1990s. The multi-million dollar system which was requested by United Airlines and was supposed to be used by all flight operators, delayed the opening of the new Denver airport several times. In the end, United used the system only for outgoing flights until last year.
United Airlines will also gain a new $41.5 million regional jet facility that is a smaller version of one proposed in 2003.
"This is a win-win situation for the airport and for both airlines," Turner West, manager of aviation at Denver International Airport, said in a statement. "United gets the facility it needs to increase its regional jet flights to Denver, Frontier gets the gates it needs to accommodate its growing passenger load and aircraft fleet, and DIA gets maximum operational flexibility."
By allowing Frontier Airlines to lease United Airlines' gates, the Denver International Airport will save a n estimated $116 million it would have spent to build new gates to meet Frontier Airlines' growing demand.
Mr. Borrman said United is in the process of installing dual jet ways that will allow passengers to simultaneously load from the front and back door of an aircraft. As each jet way is added in concourse B, United will release a gate from concourse A.
"It obviously speeds loading and unloading time and we can get more flights at the gates," he said.
