Air Service Incentives : DIA Information

  Air Service Marketing and Incentive Program

In order to increase nonstop international service at Denver International Airport, the airport is offering promotional benefits to any air carrier initiating qualifying scheduled passenger service on or before December 31, 2012. The promotional benefits include both fee waivers and a marketing incentive. Incentives are available per market. A carrier is eligible for a maximum of two incentivized markets.

Promotional Period
The Promotional Period is defined as the first consecutive 24 months immediately following the start of a new route.

Qualifying Criteria
Carriers must offer daily nonstop service from Denver International Airport (DEN) to the eligible destination; if service is less than daily but three or more times per week, the marketing benefit will be prorated accordingly. If service is less than three times per week, the carrier is not eligible for the fee waivers or the marketing benefit. The carrier must provide the service for 24 consecutive months. New seasonal service is also eligible, but marketing funds will be prorated accordingly. New seasonal service operating less than three times per week is not eligible. Charter operations, including scheduled charters, are not eligible. All conditions for receiving benefits will be documented in a contract between the City and County of Denver and the qualifying carrier and are subject to approval by the appropriate officials of the City and County of Denver.

If the carrier does not operate regularly scheduled passenger service at Denver International Airport for a period of 24 consecutive months immediately following the start of a route then all amounts paid to the carrier by the City and County of Denver for marketing activities shall be refunded to the City and County of Denver, and all fee waivers credited to the carrier shall be refunded to the City and County of Denver.

  Promotional Incentive

Operational Incentive
The carrier will qualify for a 100% waiver of landing fees and remain overnight (RON) parking fees during the first 12 months of the promotional period. The carrier will qualify for a 50% waiver of landing fees during the second 12 months of the promotional period.

Marketing Incentive
The carrier will qualify for a marketing incentive to be administered through reimbursements. In the first 12 months of the promotional period, the carrier will qualify for US$1 million, and in the second 12 months of the promotional period, the carrier will qualify for US$500,000.

All marketing initiatives must comply with Federal Aviation Administration (FAA) policy. The carrier is required to enter into a contractual agreement with Denver International Airport to cooperatively market the new route. The carrier will be reimbursed for promotional marketing supported by receipts and other related documentation. As part of the agreement, the carrier will:

• Provide a comprehensive marketing strategy in writing for approval by the City and County of Denver;
• Produce and implement an advertising campaign related to the new service at Denver International Airport;
• Initiate and implement promotional events, advertising campaigns and marketing programs directed toward promoting public and industry awareness of the new services offered by the carrier at Denver International Airport;
• Agree that when printed materials are used, the name “Denver International Airport”, with or without its logo and Web site address, shall appear prominently in the material;
• Agree that for any advertising created the name “Denver International Airport” shall appear prominently in any such advertising;
• Develop support materials promoting the benefits of Denver International Airport to targeted travelers in specific markets selected by the carrier;
• Develop support materials promoting Denver International Airport as the international gateway to the Rocky Mountain region;
• Develop support materials highlighting the increased number of passengers using Denver International Airport as a gateway to/from their destination;
• Allow Denver’s Manager of Aviation to approve targeted audiences when special events, promotions or receptions are selected as the promotional vehicle;
• Not place any advertisement created pursuant to this program without the prior written approval of the Manger of Aviation of the content and placement of the advertisement; and
• Use the funds for advertising campaigns, special events, direct mail, promotional items or other agreed upon marketing activities.

In addition, as part of the agreement, the carrier may:

• Produce and distribute brochures promoting the benefits of Denver International Airport;
• Produce and distribute direct mail pieces for distribution in Denver to announced the new service;
• Create a press kit to be distributed to the media featuring the new service.

  Eligible Markets

All international markets that do not receive nonstop service from Denver International Airport as of May 1, 2011 are eligible for the incentives, except for the following: markets that were served within the prior 24 months, and destinations in Canada, Mexico and the Caribbean. If a market is served by more than one airport, the incentive is available for only one airport in the market area (e.g., the London market includes five airports and Heathrow is already served nonstop from Denver; therefore, London is not eligible). Denver International Airport is the sole authority to determine whether a market destination is already served. Domestic markets are not eligible.

Note: This air service marketing and incentive program will not impact the rate base.