Questions to
Consider:
What is the best alternative for airport expansion?
What would be the best alternative for the Minneapolis-St. Paul Region?
Should residents living near an airport be subjected to relocation if an airport needs to expand to maintain functionality?
Do airlines currently residing at a major airport have the right to control whether a second airport will be constructed?
History of Airports in Denver
Denver International Airport replaced Stapleton in 1995. The airport is located over 20 miles from downtown Denver, one of the farthest downtown-to-airport commutes in the nation. A brief history of the airport and its troubles can be found at this link: Denver International Airport
DIA's "marvels" included its automated baggage system, a system said in the planning stages to provide efficient delivery of baggage and do away with the traditional baggage tugs. Ten years after the opening of the airport, baggage tugs still infest the airport tarmac and the automated system has been given up on. Automated Baggage System
Mayor Federico Peña is the actor who brought the new airport to life. He is strongly criticized by his opponents as being too spendy with city finances and generating projects that better serve the residents of other cities than the residents of Denver. Read Michael Fumento's article about Peña here: Denver Airport a Tribute to Federico 'Kingfish' Peña
Airport Financial Info:
As with most mega-projects, DIA was plagued with cost overruns, construction defects, and delays. This GAO report also illustrates these issues and provides insights that could be used for future projects. (Skim) DIA Cost Overruns
Read the first four pages of this document to see the size of operations in terms of passengers and freight at DIA over the past three years. DIA Today
Policies and Monopolies within the Aviation Market
This article simply gives an economical definition of a natural monopoly. It provides good background when critiquing a market. Natural Monopoly
This article has some great information in the midsection as new carriers change its market and impact the markets of surrounding airports. Look over the changes taking place in the Denver aviation market. You will have to scroll down the page until you find the title "Southwest & Denver: More Proof of The Maturing of The LCC Model". Southwest & Denver: More Proof of The Maturing of The LCC Model
Titled the "Current trends In Aviation And Airport Litigation" this article reviews policies protecting the price structure of airline tickets. Do these policies work? Current Trends in Aviation and Airport Litigation
Should airports be privatized? This document reviews the potential benefits from an increase in private involvement within the aviation industry. While addressing many issues this article takes things a step beyond and states a proposed course of action. Feel free to skim. Expanding Airport Capacity: Getting Privatization Off The Ground
Please review the market structure and claims of oligopoly and monopolies within the aviation market. Freeing Public Policy from the Deregulation Debate: The airline Industry comes of Age (and should be held accountable for its anticompetitive behavior)
Optional Readings
This paper presents a comparison between expanding an existing airport (MSP) and constructing a new one (DIA). It provides a historical background of moving from SIA to DIA. Read Chapter 5: Page 67 (81 electronic document) – Page 86 (98 electronic document). The Groundside Affects of Air Transportation
One of the major reasons behind the failure of the automated baggage handling system was the weak design of the system. Skim through this article to get an understanding of the why the automated baggage handling system failed. The Importance of Software Architecture: Denver International Airport's Automated Baggage Handling System