Denver International Airport

Denver International Airport

Part A:

(1) Was the decision to build a new airport at Denver strategically a sound decision?

Denver was the fifth largest airport in the country. Due to recent growth and projected future growth, the local government bodies (which operated the existing Stapleton International airport) determined that future growth could not be supported by expansion to Stapleton and a new airport was needed. Building a new, highly-expandable airport was a good strategic decision that was poorly planned and implemented.

(6) Why was the new baggage handling system so important to United?

In order to support a high volume of flights with the shortest possible turnaround times, United did not want their customers to wait for their luggage since several of their gates were more than a mile from the main terminal. A new automated system was designed to move luggage from plane to carousel in under 10 minutes. United would use these times in their calculation of flight turnaround times and arrival/departure scheduling.

(7) Was DIA a good strategic fit for Continental?

At the time the decision was made to move forward with DIA Continental constituted more than 33% of emplaned passengers at Stapleton. Stapleton was a major hub for Continental and building DIA would have supported growth in North American, South American, European and Asian routes.

(8) What appears to be the single greatest risk in the decision to build DIA?

I would argue that the greatest risk in the build decision was that most of the parties involved did not understand the complexity of the project. The project was started without contracts with airlines, cargo carriers and concessionaires and with significant confusion as to transition of operations from Stapleton and the role of Front Range Airport. It is almost as though they thought it was enough to build the airport and the rest would take care of itself.

(19) What was the function of the project management team (PMT) and why were two companies involved?

The PMT is responsible for schedule coordination, cost control, information management and administration of approximately 100 design contractors, 160 general contractors and more than 2000 sub-contractors.