United Airlines pact with DIA to extend lease through 2035

United Airlines recently signed an agreement with Denver International Airport (DIA) allowing it to extend its lease through 2035. The airport officials are now greatly relieved with the airline’s commitment to continue operating its flights services out of here.

United Airlines is presently the No. 1 airline at Denver International Airport in terms of the passenger numbers. Even the Chicago-based airline has continued to treat DIA as its major hub for past several years now.

However, the Denver International Airport was finding the going tough because of downscaling of the airline’s operations here ever since its merger with Continental Airlines in 2010.

Earlier, United Airlines had in February this year indicated that it will be shutting down Continental’s former hub in Cleveland. The airline had also said this July that it would be evaluating its remaining seven hubs, which included Denver as well.

The officials at Denver International Airport said that the loss of hub operations by a major airline like United would have proved to be costly for the airport and passengers. This would have significantly reduced competition among various airlines offering services out of here and also resulted in higher airfares.

Steve Jaquith, Managing Director for United Airlines’ operations at Denver International Airport and the Rocky Mountain region, said that the extension of lease agreement will now allow the airline to effectively compete with other carries on a cost-basis.

United Airlines was the only carrier to sign a long-term lease when Denver International Airport was inaugurated on February 28, 1995. The airline’s 30-year lease was due to expire in 2025. However, under the new lease which has been extended recently the airline will continue to operate out of DIA for 10 years more through 2035. The new lease will be effective from January 1, 2015.

United Airlines is presently serving more than 120 airports throughout the U.S. from Denver International Airport. The frequent daily service includes major business travel markets such as Houston, Los Angeles, Chicago and New York.