Published on : Wednesday, August 20, 2014
The lease extension will allow the airport to restructure its debt and allow United to right-size its non-gate facilities at the Rocky Mountain hub.
The Denver City Council’s Business Development Committee voted unanimously today to move the agreement for approval to the Denver City Council and Mayor Michael B. Hancock.
“We thank United Airlines again for its commitment to the Denver metro region. Having United affirm and extend its commitment to the Denver market is a significant action, in a time of volatility within the aviation industry, that will stoke the state’s largest economic engine,” Hancock said.
“The airport continues to take critical steps that support existing airlines and attract new airlines and routes that are increasingly putting Denver on the international stage.”
When Denver International Airport opened on February 28, 1995, United Airlines was the only airline to sign a long-term lease. United signed a 30-year lease to expire in 2025, when the original airport bonds will be paid off.
“DIA has diligently worked to leverage our resources and lower costs for all of our airline partners; this will strengthen our competitive position and encourage airlines to grow in Denver,” said airport CEO Kim Day.
“This is the latest initiative in a series that is focused on long-term stability and growth of our airport and United Airlines, a great partner, has demonstrated its support of Denver and our community by executing this lease extension.”
The agreement is expected to save United Airlines approximately $35 million annually, while also benefiting all the airlines at DIA through debt restructuring and amortization changes.
“This is a great example of a city and an airline working together to ensure that the airport stays cost competitive,” said Jim Compton, United’s vice chairman and chief revenue officer.
“United Airlines and DIA’s strong relationship spans decades, and we thank Mayor Hancock and the City of Denver for their continued partnership.”
United in Denver
United averages more than 375 daily departures and will serve more than 130 destinations, including Panama City and Tokyo by the end of this year.
United flies to more than 120 airports across the United States from Denver, including frequent daily service to top business travel markets in New York, Chicago, Los Angeles and Houston.