COLORADO SPRINGS, Colo.—Frontier Airlines Holdings Inc. said Friday it will build a $25 million maintenance facility at the Colorado Springs Airport and start service to the city next year.
Frontier Chief Executive Officer Sean Menke said the airline considered proposals from seven other Colorado locations over the past year and opted to move the operation from its Denver International Airport hub because Colorado Springs made a better financial offer.
“We feel that we have found a great fit in Colorado Springs, both for our employees as well as our balance sheet,” Menke said in a statement.
Denver Aviation Manager Turner West said the city made a competitive and fair offer. “We understand that this was a necessary business decision for Frontier and we wish them the best as they move forward,” he said.
The estimated 100,000-square-foot hangar will be built on 11 acres and employ about 225 people. Denver-based Frontier plans to finance the project through a city tax-exempt special facility bond and will lease it from the city for 30 years. Construction will start next spring and take up to 18 months to complete.
Frontier will establish programs to help employees relocate to Colorado Springs, which is about 60 miles south of Denver.
Menke said they are finalizing details about the new Colorado Springs-Denver service, which will start by late spring.
Frontier’s stock dipped 7 cents to close at $7.03 a share Friday.
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