More arguments against a hub airport

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KCPowercat
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More arguments against a hub airport

Post by KCPowercat »

Look at what might happen to DIA if United goes under...why let one airline have that much control over your population and airport?

DIA sets scenario for loss of United
Plan would raise fees for other carriers 78%
By Jeffrey Leib, Denver Post Staff Writer
If United Airlines were to halt flying and liquidate operations, remaining airlines at Denver International Airport would see a 78 percent increase this year in the fees and rents they pay at DIA, according to a "liquidation scenario" prepared by airport officials.

Such a huge increase in costs for remaining carriers - about $64 million this year and rising to $100 million by 2006 - would likely be passed on to passengers as fare increases.

DIA would need the extra money to cover payments on about $4 billion in airport debt, according to the airport analysis. Officials presented it to Denver City Council members Wednesday.

Other airlines should not be asked to pay increased costs that might follow a United liquidation, said Elise Eberwein, vice president of communications for Frontier Airlines, DIA's second-largest carrier.

"The last thing the city, airport and consumers would want is for United's demise to negatively impact other carriers in this way," Eberwein said. "It would be more prudent for the airport to find another way to make up the shortfall."

Mayor Wellington Webb said recently that Denver hopes other airlines, including Continental, Delta, Northwest, American and Frontier, would increase their flying at DIA if United went out of business.

The liquidation scenario assumes that nearly all of United's local passengers - those who begin or end their flights in Denver - would be picked up by other airlines serving DIA.

Passengers who would be lost to DIA would be United's connecting travelers, who merely change planes in Denver.

The airport's report estimates there would be a reduction of about 6.9 million passenger boardings at DIA this year - nearly all of them United connecting passengers - if the airline were to liquidate. That would be a 39 percent drop.

The DIA report said that if such a liquidation occurred, other airlines would lease about 50 percent of United's ticket counter space in the terminal and 16 of its 43 gates on the B concourse to handle the local traffic left by United.

It said remaining carriers this year also would be expected to lease four of the eight gates United has on the A concourse.

Frontier's Eberwein said her airline needs more gates on A now, not after some potential liquidation. "We're out of space today," she said.

Airport chief financial officer Stan Koniz said DIA prepared the liquidation analysis to show bond ratings agencies that Denver has a plan for weathering a United shutdown.

Koniz stressed that DIA is not predicting a liquidation by United, which with its United Express regional airlines accounts for about 64 percent of traffic through the Denver airport.

United spokesman Chris Brathwaite said that DIA may believe it had to prepare the liquidation scenario but that the airline intends to emerge from bankruptcy and continue flying.

The airline filed for Chapter 11 bankruptcy protection in December.

United recently reached agreement with its unions for billions of dollars in labor cost savings over the next six years, Brathwaite said.

"I think Denver will agree that we are solely focused on a successful reorganization through Chapter 11," he said.

"DIA is our second-largest hub, and we will continue to serve customers to and from Denver every day," Brathwaite said. "This airline will be stronger, leaner and more competitive."
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hartliss
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More arguments against a hub airport

Post by hartliss »

True, If United goes under the city of Denver will be scrambling to find a carrier to fill the void. DIA was built to be an airport serving as a hub. This will be very interesting to see how things pan out. KCI on the other hand will never have to worry about that problem. Not one airline dominates and a lot of carriers compete for the same routes which keep fares low.
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tat2kc
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Post by tat2kc »

the nice thing about kci is that there is land available to build the 4th terminal when it is needed. Because the 3 current terminals are separate, with different entrances and such, even if boardings drop by a significant amount, one terminal can be mothballed until such time as it is needed. With the uproar in the airline industry, the current design of KCI is more and more attractive.
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Post by dangerboy »

If only they had spent the money to put restrooms in the new security areas KCI would be even better, but it is still super easy to use.
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tat2kc
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Post by tat2kc »

When the remodeling was designed, restrooms were considered, but rejected because of the extreme added expense of moving/expanding utility service. Plus, at the design time, security was much less stringent, and you could dash out, do your business and get back to the gate in less than 5 minutes. Renovation was already under way Sept. 11, and to stop and redesign, and go back and fix the issue would have been prohibitive. Luckily, with so many security entrances, the wait time is really low, and not nearly the issue it is in other terminals.
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Post by dangerboy »

Yeah I know they decided they didn't want to spend the extra money to do it, but I wish they had done the compromise that was considered at one point - making the entire middle third of the terminal a security area and leaving the end thirds half/half like they are now.

Since Sept. 11th I have already been delayed three times sitting at the gate waiting for someone to get back through the check point after running out to the restroom. And if you have kids, 90% of the time the first thing they have to do after getting through the checkpoint is go to the restroom.

The rest of the renovation is awesome, it's just this one big thing that is a problem for the 95% of passengers who don't know the rational behind the decision.
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Post by KCPowercat »

having bathrooms inside the security would have been nice but every time I've went in and out, it's taken me less than 5 minutes (even post 9/11) to get back into security....of course I don't fly southwest, they may be different.
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Post by bahua »

I have flown SW 6 times since 9/11(it being my favorite airline, hands down), and getting in and out of security at KCI is fine. As for Denver's fares going up, such is life. The hub style is a dying breed, and that's fine with me. The solution should be another company(or transit method) coming in to fill the demand vacuum, not subsidy.
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