The city of Denver and United Airlines finally reached a tentative agreement. United would use 45 of the potential 90-100 gates at Concourse B. This would be a substantial increase from the 26 gates DIA had originally thought that United would require. The 50% increase in gates would also add 2000 reservations jobs. United also expressed an interest in building a $1 billion maintenance facility at DIA employing 6000 people.

United stated later that the agreement did not constitute a firm commitment but was contingent upon legislative approval of a tax incentive package of $360 million over 30 years plus $185 million in financing and $23 million in tax exemptions. United would decide by the summer in which city the maintenance facility would be located. United reserved the right to renegotiate the hub agreement if DIA was not chosen as the site for the maintenance facility.

Some people believed that United had delayed signing a formal agreement until it was in a strong bargaining position. With Continental in bankruptcy and DIA beyond the point of no return, United was in a favorable position to demand tax incentives of $200 million in order to keep their hub in Denver and build a maintenance facility. The state legislature would have to be involved in approving the incentives. United Airlines ultimately located the $1 billion maintenance facility at the Indianapolis Airport.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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