United To Continue DIA Expansion
Recent Financial Problems Won't Stop 35-Gate Project
DENVER -- United Airlines will proceed with a 35-gate expansion at Denver International Airport, ending months of speculation that the project was in danger because of the company's recent financial problems.
The carrier's board of directors approved the project at a
meeting in Colorado Springs last week, United spokeswoman Whitney
Staley said on Tuesday.
News from the meeting was slow to trickled out. It was the same meeting where the board decided to scrap a planned merger with US Airways.
The additional gates will be built on the east wing of Concourse
A for regional jet service. It will make the airport the largest,
most modern regional aircraft facility in United's five-hub system.
Even as United cuts back some operations, the nation's number
two carrier is expanding its regional jet fleet.
United Express carrier Air Wisconsin has ordered between 50 and
150 new Bombardier regional jets, many of which are expected to be used at DIA.
The jets, which hold 50 to 70 people, allow airlines to fly long
distances to smaller cities faster and more comfortably than
turboprops.
Currently United Express passengers are funneled from Concourse
B, passing through prefabricated metal walkways and climbing up
stairs to board their flights.
The expansion will give United Express passengers jetways and
other amenties that United customers enjoy, Staley said.
Industry analysts had speculated that United might cancel or
postpone the expansion in an effort to trim about $300 million from
its budget. United lost $305 million in the first quarter and is
expected to lose more than $11 a share this year, according to
industry estimates.
Airline analyst Mike Boyd, president of the Boyd Group of
Evergreen, said that United had to go through with the expansion to
compete with American Airlines, which recently acquired TWA.
"They have to expand their east-west routes or they'll lose
market share to American," Boyd said.
The expansion was originally expected to be open in 2003 but the
date may have to be pushed back because of financial and
operational problems during the past year.
United and United Express carry about 66 percent of the passengers
who fly through Denver.
Additional Resources:
The carrier's board of directors approved the project at a
meeting in Colorado Springs last week, United spokeswoman Whitney
Staley said on Tuesday.
News from the meeting was slow to trickled out. It was the same meeting where the board decided to scrap a planned merger with US Airways.
The additional gates will be built on the east wing of Concourse
A for regional jet service. It will make the airport the largest,
most modern regional aircraft facility in United's five-hub system.
Even as United cuts back some operations, the nation's number
two carrier is expanding its regional jet fleet.
United Express carrier Air Wisconsin has ordered between 50 and
150 new Bombardier regional jets, many of which are expected to be used at DIA.
The jets, which hold 50 to 70 people, allow airlines to fly long
distances to smaller cities faster and more comfortably than
turboprops.
Currently United Express passengers are funneled from Concourse
B, passing through prefabricated metal walkways and climbing up
stairs to board their flights.
The expansion will give United Express passengers jetways and
other amenties that United customers enjoy, Staley said.
Industry analysts had speculated that United might cancel or
postpone the expansion in an effort to trim about $300 million from
its budget. United lost $305 million in the first quarter and is
expected to lose more than $11 a share this year, according to
industry estimates.
Airline analyst Mike Boyd, president of the Boyd Group of
Evergreen, said that United had to go through with the expansion to
compete with American Airlines, which recently acquired TWA.
"They have to expand their east-west routes or they'll lose
market share to American," Boyd said.
The expansion was originally expected to be open in 2003 but the
date may have to be pushed back because of financial and
operational problems during the past year.
United and United Express carry about 66 percent of the passengers
who fly through Denver.
Additional Resources:Copyright 2002 by TheDenverChannel.com. The Associated Press contributed to this report. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
