At Age 10, Denver Airport Says Its Tarnished Image is History
By Sandy Shore Associated Press
DENVER -- What a difference a decade makes.
Denver International Airport, with its white-peaked roof visible over miles of rolling prairie, opened in 1995, more than a year late, after racking up hefty budget overruns. It was criticized for high operating costs -- and ridiculed because of an automated baggage system that chewed up bags rather than delivering them.
Fast-forward to October 2005 as low-cost giant Southwest Airlines -- which has the reputation of boosting traffic and revenue for airports -- said it would start service here Jan. 3 after repeatedly refusing to fly out of DIA.
It was the icing on a years-long effort to turn DIA into one of the most efficient airports in the world.
"I don't think back to those dark days," DIA co-manager Vicki Braunagel said. "I actually feel privileged to have been a part of it from the beginning."
Aviation industry analysts credit DIA for cutting costs by about half in the past 10 years, and note its expansive layout is easy to maneuver in for pilots and travelers.
"It's probably one of the best-managed airports in the country," acknowledged analyst Mike Boyd of The Boyd Group, long an outspoken DIA critic. "They understand they are in business to service the public.
"I will argue it was bad policy to build it, but that is kind of a moot point right now," he said.
City planners began thinking about a new airport 30 years ago when they realized Stapleton International Airport was congested, its cramped runway system vulnerable to winter storms that forced delays. Critics said it was too small for a regional hub and expansion possibilities were limited.
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Planners settled on 53 square miles some 25 miles northeast of downtown for the new airport. The largest public works project in Colorado history was billed as a way to pull the Rockies region out of an economic slump brought on by the oil and gas bust of the 1980s.
Voters approved a referendum in 1989 for a $2 billion facility and ground was broken that year with an opening scheduled in October 1993.
The problems quickly began to mount.
Four opening dates came and went, first because of construction delays and then because the highly touted automated baggage system malfunctioned, tossing bags in the air and gnawing on others in videotaped footage shown nationwide. Continental Airlines sought bankruptcy and cut its commitment to DIA; plans were scaled back to 84 gates, fewer than Stapleton. Bond rating agencies downgraded DIA revenue bonds to a step above noninvestment grade.
In 1994, the project was almost three times over budget, with delays costing about $1 million a day in interest payments on bonds.
State and federal investigations were launched into just about everything from allegations of misleading information on bonds to potential misdeeds in land acquisitions.
The city spent long hours attempting to reassure the investment community that the airport would eventually open, Braunagel said.
"I consider that entire year we didn't open a pretty dark year," she said. "Everybody with initials investigated us. They were all dismissed. Every single one of them was closed."
The fifth opening date of Feb. 28, 1995, proved the charm and today DIA is the fifth-busiest airport in the United States, serving an estimated 42 million passengers a year. Typically, it ranks in the top five in the nation for on-time arrivals.
Airport officials have cut costs by reducing operating expenses, leveling off debt and increasing passenger traffic. In addition, revenue from such services as parking and concessions increased from $6.88 per passenger in 1995 to an estimated $9.29 this year.
Braunagel said refinancing and restructuring have helped save about $1 billion in costs. Today, the airport has about $4 billion in debt. Officials have kept about 140 jobs open to save money, and employees have operated within budgets to keep costs low.
In 1986, Southwest Airlines had 10 to 15 flights at Stapleton, but pulled out because of its congested operations. When DIA opened, Southwest looked at the operating costs and concentrated instead on building California operations.
"It was way off of our radar," Southwest Chief Executive Officer Gary Kelly recalled. It's the lower costs that primarily have brought the Dallas-based carrier back, Kelly said.
DIA will expand in coming years by reconfiguring space as needed for new technology, such as the self-service kiosks and larger aircraft, and by adding gates or building new concourses.
Braunagel expects traffic to increase to more than 45 million passengers next year with the addition of Southwest.
Source: Deseret News (Salt Lake City)
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