Some 800 eyes and ears were focused on DIA Aviation Manager Kim Day on April 16 as she presented “State of the Airport 2009” during lunch at Denver’s Grand Hyatt ballroom.

The business audience was rapt as DIA’s new manager talked about the airport today and tomorrow.

“Every day on the job reinforces that I am overseeing one of the greatest airports in the world,” Day said. The airport is “supported by a visionary community that put its money behind its dream, and in building this facility built a regional long-term asset.”

Day spoke about the impetus behind DIA’s first master plan in more than 20 years. The airport is developing a plan to take it to 2030, and into Phase II of the original master plan. DIA had 51.2 million passengers in 2008, surpassing the airport’s first-phase threshold of 50 million passengers. Expansion is the order of the day, but aviation industry volatility and a moribund economy are affecting the scope and pace of airport expansion.

“We need to address all the dynamic changes to the aviation industry in the last 14 years,” Day said, “including changes to security and technology, which have greatly altered passenger processing, as well as changes to aircraft size, and airline markets, which will influence our future footprint. We must plan in a smart way, one that does not preclude any of our long-term potential.”

Day reminded the audience that DIA is capable of doubling in size within its current boundaries – a unique and remarkable aviation asset. DIA’s breadth gives it a competitive advantage because of capacity and the ability to expand at low incremental cost. Day said DIA also has become very competitive because airfares out of the Denver market are now among the lowest in the United States. They have decreased more than 23 percent since their peak in 2000.

Day emphasized that DIA operates in a competitive environment, and even with its advantages it cannot afford to become complacent.

DIA competes by maintaining competitive costs for the airlines that use our facility, she said, and “by working with the business community to sell premium tickets that make flights profitable; by offering and maintaining an efficient airfield; and by partnering with our airlines to make our facility customer-friendly.”

Diverse revenue streams are paramount to keeping DIA financially viable, Day said. The airport cannot rely solely on aviation income but must develop other sources of revenue to keep airline operating costs low.

“We must plan for the airport’s evolution with our neighbors to ensure cohesive and efficient infrastructure investment,” Day concluded. Equally important, she said, is “joint development that will not limit our ability to increase air service.”

Following Day’s talk, Jeppesen President and Chief Executive Officer Mark Van Tine led a panel discussion about the aviation industry. Participating were: Chris Collins, chief operating officer, Frontier Airlines; Chuck Howell, chief executive officer, Great Lakes Airlines; Kevin Knight, senior vice president of planning, United Airlines; Pete McGlade, vice president of network planning, Southwest Airlines; and Travis Vallin, director, Division of Aeronautics, Colorado Department of Transportation.

Read Day's speech (Adobe PDF)

DIA Master Plan Presentations

The future is fast approaching and Denver International Airport is busy planning for its arrival.

Planning for the future becomes more efficient and effective through the creation and implementation of a master plan.  An airport master plan provides a road map for efficiently meeting aviation demand through the foreseeable future while preserving the flexibility necessary to respond to changing industry conditions.  DIA’s original master plan, which was completed in the late 1980s when airport construction initially started, projected that the newly built facility could support approximately 50 million annual passengers.  In 2008, annual passenger traffic topped 51 million. 

In March and April of this year, master plan meetings were held throughout the metro Denver area.  DIA held meetings in Adams County, Brighton, Aurora, Commerce City, and Denver.  Although some meetings were private meetings with specific audiences, such as government officials, city councils, and transportation committees, four public meetings were also held that any interested citizen could attend to learn about the master plan.  The public meetings attracted residents, businesses, media, and hopeful contractors.  Attendees of the public meetings voiced concerns, provided input, and sought continual updates regarding the master plan process.

As part of the master plan, DIA has identified short-term needs for the 2015-2020 timeframe. These include one additional runway (seven total runways), a FasTracks rail station, an on-airport hotel, and concourse expansion on any or all concourses (A, B, or C gates).

In addition to meeting the short-term needs of airport activity, DIA is taking a longer-term view of the airport to plan for activity through the 2030-2035 timeframe. Projects in this timeframe could include additional runways (nine or 10 total), additional concourses, a new terminal complex, and three lanes for all of Peña Boulevard. At full build-out, DIA will have more than 300 gates and will be able to accommodate more than 100 million annual passengers. 

Size is one of the most significant competitive advantages in the global aviation industry. DIA is the envy of airports around the world because of its ability to grow to accommodate the dynamic needs of airlines, passengers, and stakeholders. The challenge facing current planners is to ensure that this tremendous asset is preserved.

This will be achieved through communication, cooperation, and coordination with stakeholder groups, including local governments, businesses, airlines, and community organizations as DIA moves toward final recommendations for the airport’s master plan. The entire region and state will continue to benefit from DIA’s evolution and expansion.  

For more information regarding DIA’s master plan process please visit: www.flydenver.com/masterplan.

Denver’s Top-10 International Destinations for 2008

Carriers that provide nonstop service from DIA are listed in parentheses.

1. Cancun (Frontier, United)
2. London (British Airways, United)
3. Puerto Vallarta (Frontier, United)
4. Toronto (Air Canada, United)
5. Mexico City (Mexicana)
6. Vancouver (United)
7. Los Cabos (Frontier, United)
8. Frankfurt (Lufthansa)
9. Calgary (United)
10. Paris

Source: MIDT

DIA Is EASy

Residents in big cities take air service for granted. Citizens of smaller communities, however, often struggle to attract and keep commercial flights at their airports.

Without air travel, communities can be virtually isolated economically or their business and leisure travelers are greatly inconvenienced by having to drive several hours to reach an airport with commercial service.

DIA is EASy for numerous communities because of the Essential Air Service program of the U.S. Department of Transportation. The EAS program subsidizes air service to small communities. The program was established under the Airline Deregulation Act of 1978 to ensure that small communities would continue to receive scheduled air service. Without these subsidies, airlines would not be able to afford the cost of providing service to these markets.

Denver’s central location in the relatively sparsely populated center of the country makes it an ideal location for EAS flights. In fact, DIA is the largest EAS airport in the United States, with flights reaching 24 cities in 10 states. Nationwide, the DOT oversees EAS funding to 144 communities in all 50 states.

All of DIA’s EAS service is provided by Cheyenne, Wyo.-based Great Lakes Airlines. Most of the flights are nonstop from Denver, although several cities – including three in Montana – are served one-stop through other destinations. Great Lakes’ fleet includes two aircraft types – 19-seat Beechcraft 1900s and 30-seat Embraer 120 Brasilias. In addition, Great Lakes has nonstop service from Denver to nearly 10 non-EAS cities, ranking as the fourth-largest carrier at DIA in terms of both flight operations and markets served nonstop.

“Denver is the perfect hub for Essential Air Service,” said Chuck Howell, chief executive officer of Great Lakes Airlines. “The airport provides a tremendous connecting network of low fares for travelers from smaller communities across the western United States, and the passenger experience at Denver International Airport is outstanding.”

EAS markets served from Denver essentially widen the primary catchment area of the airport and strengthen DIA as a hub. “Every market – no matter what the size – is an important market for Denver International Airport,” said Kim Day, DIA’s manager of aviation. “The EAS service provided by Great Lakes at DIA not only expands our local market but widens our connecting network.”

The current total funding for the program is $110 million. Airlines bid on service, and EAS contracts are typically issued for two years. The annual subsidies range from $600,000 to more than $2 million per route for service in the continental United States. Amounts are lower in Alaska.

World War II Vets Depart DIA for Washington

En route to Washington, D.C., to attend the unveiling of the new World War II Memorial, 132 local World War II veterans attend a ceremony at the Signature Hangar at Denver International Airport before departure.

The World War II Memorial was designed by Friedrich St. Florian of Providence, R.I., and will be dedicated on May 29. Part of the monument is a wall of 4,000 stars – one for every 100 Americans killed in the war.

The new World War II Memorial in Washington, D.C.
(c) Richard Latoff/Latoff.com

DIA’s Airline Market Shares

DIA Shares Top Spot for Competitive Air Service

What is good news for passengers – such as a new airline entering a market – can put pressure on the airlines already serving the market.

Competitive airline service – defined as two or more carriers serving a market – generally lowers passenger fares, creates greater flexibility in passenger flight scheduling, and allows for more passenger choices in airline services.

One of DIA’s strongest assets is its central location in the United States. Because of its location, DIA is a natural connection point for transcontinental air travel, as well as travel between Canada and Mexico. Plus, DIA can capture travelers in surrounding states because no other major airports are within a 500-mile radius of DIA. These competitive advantages led to hubbing activity by both United and Frontier – DIA’s largest air carriers – and more recently, to substantial activity by Southwest Airlines. 

As a result, nearly 50 percent of DIA’s more than 150 nonstop destinations enjoy competitive service.  And of the markets with competitive service, half are served by three or four airlines. In fact, of the top origination and destination airports in the United States, only DIA and Atlanta’s Hartsfield-Jackson International Airport (ATL) have competitive airline service to 100 percent of their respective top-40 domestic destinations. The following top U.S. domestic origin-destination markets are ranked by percentage of competitive air service they have for their own top-40 destinations.

1. Denver – competitive service in all of its top-40 markets (100 percent)
2. Atlanta (ATL) – 100 percent
3. Chicago O’Hare (ORD) – 98 percent
4. Phoenix (PHX) – 88 percent
5. Los Angeles (LAX) – 80 percent
6. Las Vegas (LAS) – 73 percent
7. Orlando (MCO) – 73 percent
8. Seattle (SEA) – 65 percent
9. Dallas/Ft. Worth (DFW) – 50 percent
10. New York/LaGuardia (LGA) – 43 percent

“We’re extremely pleased with the mix of air service available at Denver International Airport,” said Kim Day, DIA’s manager of aviation. “To have such a high percentage of competitive service ultimately benefits the passengers by lowering fares and also provides an incentive for airlines to offer the best service possible in order to compete in the Denver market.”