Notions to move Frontier Airlines from its Denver headquarters should be “viewed as a challenge” to the city and battled aggressively, area economic development officials say.
The financial impact of moving the large carrier would be staggering — estimated by some to be millions of dollars taken from the local economy.
“This needs to be viewed as a challenge to keep the Denver headquarters here, and as cities continue to bid, we need to respond aggressively,” said Tom Clark, Metro Denver Economic Development Corp. executive vice president.
Republic Airways Holdings, based in Indianapolis, announced Monday that it bid nearly $109 million to buy Frontier and a subsidiary out of bankruptcy. A day later, some observers said that Frontier leaving Denver would be a loss of a brand that is “emblematic” of Colorado.
No relocation plans have been announced, and the bankruptcy buyout plan requires a judge’s approval at a hearing scheduled for July 13.
Should Frontier leave, it would create a financial deficit in the city’s economy of about $380.8 million a year, much of it salaries and wages to Frontier employees, Clark said.
One idea to entice Republic to let Frontier stay, Clark said, would be to use new state legislation that gives a 3.8 percent tax credit against Colorado income-tax liability for companies creating at least 20 jobs.
Passed in April, House Bill 1001 provides tax credits for five years, though they can be spread out over a 10-year period.
And with Republic looking to buy Midwest Airlines, that could mean big things for Denver International Airport.
“If there were a consolidation from Republic or Midwest into Denver, this would be an incentive for keeping and growing the base here,” Clark said.
Still, relocating Frontier headquarters wouldn’t have a large impact on DIA operations, airport spokesman Chuck Cannon said.
If nothing else, the emergence from bankruptcy court means the airline will continue to operate and probably remain DIA’s second-largest carrier.
“It’s very good news; it looks like they are going to emerge successfully from bankruptcy and continue as a viable airline,” Cannon said. “They’ll continue to lease space like they have been and paying rents and landing fees, so it’s going to be pretty much business as usual for us.”
Sara Castellanos: 303-954-1381 or scastellanos@denverpost. com
