Denver International Airport unveils 10 year financial strategy
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Posted: 9 February 2011 | Denver International Airport
Denver International Airport today unveiled a 10-year financial strategy designed to position the airport for fiscal stability and growth…
Denver International Airport today unveiled a 10-year financial strategy designed to position the airport for fiscal stability and growth. The plan is focused on optimizing existing resources and effectively funding improvements such as facility upgrades, roadway projects, baggage system enhancements, and the South Terminal Redevelopment Program.
“A collaborative team from DIA, Denver’s Department of Finance, and the Mayor’s Office developed a plan and a budget that is smart and affordable for Denver International Airport,” said Denver Mayor Guillermo (Bill) V. Vidal. “The South Terminal Redevelopment Program will provide additional jobs for the region, new sources of tax revenue for the City’s General Fund and connect DIA with a spectacular new commuter rail line.”
Additional goals of the 10-year financial strategy are maintaining competitive operating costs for DIA’s airline partners and more informed decision-making. The plan’s design will allow the airport to adapt to changing markets and economic climates. It establishes targets against which DIA can manage and measure performance.
“We have shifted our culture and have begun to run this airport like a private business. To do so successfully, we must set long-range financial goals, have metrics to measure our progress and a strategy to support informed decision-making,” stated Kim Day, manager of DIA. “This is the first time we have had an integrated financial strategy that takes into account passenger traffic, debt, operation and maintenance (O&M) expense, and DIA’s capital improvement plan; it positions us well to face the future.”
Leaders from DIA and the City and County of Denver have been meeting regularly since August 2010 to prepare the plan and test its feasibility. DIA benchmarked itself against other airports to assess competitive position. The strategy was reviewed by numerous external audiences, including bankers, financial advisors, airlines, former airline executives and U.S. airport executives.
“We have said all along, that we will not build anything that we cannot afford. This budget is affordable and allows us to move forward with the vision we unveiled in 2010,” said Day. “It has taken a great deal of effort by our consulting team in combination with our financial group, but we have reached a program definition and budget that work hand-in-hand.”