Denver supports United but makes backup plans

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Denver supports United but makes backup plans

DENVER (AP) =97 City officials are talking to other airlines to devise a=20
backup plan in case United Airlines should fail or emerge from bankruptcy=20
as a smaller carrier. "As much as you cheer for United, you have to play=20
the what-if game," Mayor Wellington Webb said Monday. Webb said his goal is=
=20
to find at least one carrier willing to make Denver a hub. "We believe the=
=20
geographic location of Denver makes it a prime location for another=20
airline," Webb said. Denver Aviation Director Bruce Baumgartner and=20
economic development chief Ron Bernstein were in Houston on Monday to meet=
=20
with executives of Continental Airlines, whose chief executive has=20
expressed an interest in expanding in Denver. Webb met with Frontier=20
Airlines CEO Jeff Potter last week. City officials also plan to talk to=20
Delta, Northwest and American airlines, Webb said, even as they support=20
United's effort to emerge from bankruptcy. "Every day that goes by makes=20
those contingency plans moot," said United spokesman Chris Brathwaite,=20
"because we are taking significant steps forward in our reorganization."=20
United accounts for nearly two-thirds of the traffic at Denver=20
International Airport.

United has strusk agreements with four of its six unions to help reduce=20
expenses, but the war in Iraq and the outbreak of severe acute respiratory=
=20
syndrome, or SARS, have cut air travel. Airline bond analyst Philip=20
Baggaley of Standard & Poor's said recently that United could default on=20
its bankruptcy loans by the end of May, if not sooner. Denver officials=20
would not provide specifics on results of talks with airlines. "It was a=20
matter of the city wanting to learn more about our plans and how we might=20
fill in if there were opportunities created by United failing," Frontier=20
spokeswoman Elise Eberwein said. Frontier would like to get more gate space=
=20
on Concourse A to accommodate additional flights, but it can't because=20
United holds those gates, she said. Continental declined to comment.=20
Airline analyst Michael Boyd said the city's success in getting other=20
carriers to step in would depend on the airlines' need for DIA. "There are=
=20
airlines that already have plans," Boyd said. "It is a thinly veiled secret=
=20
that Continental has a great interest." Even if replacements step in, DIA=20
would still see only a fraction of the 400 flights United provided, Boyd=20
said. He said few airlines have the financial strength to add capacity in=20
this market but that some might take advantage of a vacuum in Denver, if=20
one appears.


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