Air Service Incentives : Business Opportunities
In order to increase nonstop air service and passenger traffic at Denver International Airport (DEN), the airport is offering promotional benefits to any air carrier initiating qualifying scheduled passenger service between September 1, 2013, and August 31, 2015. The promotional benefits include fee waivers and/or a marketing incentive. Incentives are available per market. A carrier is eligible for a maximum of two incentivized markets during the aforementioned period.
The Promotional Period is defined as the first consecutive 24 months immediately following the initiation of eligible new service.
Carriers must offer daily nonstop scheduled passenger service from Denver International Airport (DEN) to the eligible market; if service is less than daily the benefit is prorated accordingly. The carrier must provide the service for 24 consecutive months. Seasonal service is also eligible; if service is seasonal the benefit will be prorated accordingly. Charter operations, including scheduled charters, are not eligible. All conditions for receiving the benefits will be documented in a contract between the City and County of Denver and the qualifying carrier which will be subject to approval by the appropriate officials at the City and County of Denver.
If the carrier does not operate the scheduled passenger service at Denver International Airport for a period of 24 consecutive months immediately following the initiation of the route then all amounts paid 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.
Carriers adding service to Africa, Asia, Australasia, Europe, the Middle East, Central and South America will qualify for a maximum of US$2 million per market over the Promotional Period. Carriers adding service to Canada, Mexico and the Caribbean Islands will qualify for a maximum of US$1 million per market. Carriers adding service to a domestic U.S. destination will qualify for a maximum of $400,000 per market. The carrier can allocate these funds between operational and marketing incentives as the carrier chooses.
Operational incentives are administered through fee waivers. Operational incentives available to carriers include:
- Waiver of landing fees
- Waiver of remain overnight (RON) fees; and
- International Passenger Fees (e.g., Federal Inspection Service fees and gate fees)
The marketing incentive is administered through reimbursements and all marketing initiatives must comply with Federal Aviation Administration (FAA) policy. The carrier is required to enter into a contractual agreement with the City and County of Denver 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
- Initiate and implement promotional events, advertising campaigns and marketing initiatives 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
- Use the funds for advertising campaigns, special events, direct mail, marketing materials, promotional items or other mutually agreed upon marketing activities
- Not place any advertisement created pursuant to this program without the prior written approval of the content and placement of the advertisement by the Manager of Aviation or her designee.
All international markets are eligible including currently served markets. If a carrier that is currently serving a market adds new service to that market, the added flight must increase capacity by 50 percent or more of available seat miles (ASMs) for over the immediately preceding 12-month period to qualify for the incentive. The carrier must also add the new service without reducing or eliminating any already existing service to the market during the 24 months immediately following the initiation of the new service.
All unserved domestic markets (as of September 1, 2013) are eligible.