Frontier Airlines, which has narrowed the contenders for its new heavy maintenance hangar to Colorado Springs and Denver International Airport, said it would cost more to move the operation out of Denver.
Frontier already does its heavy maintenance at DIA.
If the facility is located at another airport, “we may incur relocation expenses and higher-than-normal staff attrition,” Frontier said in its quarterly Securities and Exchange Commission filing.
Frontier may also be forced to contract for third-party maintenance during a transition period, which would increase its overall maintenance costs, according to the filing.
In negotiations with DIA, Frontier had been pushing for relief of the aircraft parts sales and use tax, and Denver has offered incentives.
Separately, Frontier said it may begin construction of its line maintenance hangar at DIA in the spring. That hangar will take 12 to 18 months to complete, and Frontier is looking for facilities in other cities to use in the interim.
Frontier now leases part of a Continental Airlines hangar for its heavy maintenance and some line maintenance.
Frontier also said in the filing that it is deferring the delivery of four Airbus A320 jets, with the final A320 on order to be delivered in November 2011 instead of August 2010.
Frontier recorded a profit in the September quarter, but does not expect to be profitable in quarters ending in December 2007 and March 2008.
Kelly Yamanouchi: 303-954-1488 or kyamanouchi@denverpost.com
