Federal Express and United Parcel Service (UPS) planned to move cargo operations to the smaller Front Range Airport rather than to DIA. The master plan for DIA called for cargo operations to be at the northern edge of DIA, thus increasing the time and cost for deliveries to Denver. Shifting operations to Front Range Airport would certainly have been closer to Denver but would have alienated northern Adams County cities that counted on an economic boost in their areas. Moving cargo operations would have been in violation of the original agreement between Adams County and Denver for the annexation of the land for DIA.
The cost of renting at DIA was estimated at $0.75 per square foot compared to $0.25 per square foot at Front Range. DIA would have higher landing fees of $2.68 per 1000 pounds compared to $2.15 for Front Range. UPS demanded a cap on landing fees at DIA if another carrier were to go out of business. Under the UPS proposal, area landholders and businesses would set up a fund to compensate DIA if landing fees were to exceed the cap. Cargo carriers at Stapleton were currently paying $2 million in landing fees and rental of facilities per year.
As the ''dog fight" over cargo operations continued, the Federal Aviation Administration (FAA) issued a report calling for cargo operations to be collocated with passenger operations at the busier metropolitan airports. This included both full cargo carriers as well as passenger cargo (i.e., "belly cargo") carriers. Proponents of Front Range argued that the report didn't preclude the use of Front Range because of its proximity to DIA.
Was this article helpful?
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.