Frontier seeks court approval to break building lease

By Chris Walsh, Rocky Mountain News (Contact)

Originally published 10:52 a.m., May 15, 2008
Updated 09:12 p.m., May 15, 2008

Frontier Airlines is looking to stay in its current headquarters rather than move into another building a few miles away.

The carrier on Thursday asked a bankruptcy court for permission to back out of a leasing agreement involving a 43,877-square- foot, single-story building in Gateway Park, near Denver International Airport.

Frontier, which filed for bankruptcy last month, said it doesn't make financial sense to move now. The Denver-based carrier initially planned to relocate some corporate operations to the building this spring, although it also intended to continue occupying its 70,000-square-foot headquarters on Tower Road.

"The space we have now is sufficient," said Frontier spokesman Steve Snyder, adding that the carrier will work to renegotiate its existing leases.

Frontier also wants permission to stop paying consultant fees for a planned line maintenance hangar at DIA, according to documents filed with the bankruptcy court. The project has been, and will remain, on hold for the foreseeable future, Frontier said.

Separately, the carrier received court approval Thursday to terminate its contract with Republic Airways, a move that will save the carrier $20 million annually.

The initial contract, cemented last year and scheduled to last 11 years, will now end June 22, according to a court filing approving the motion.

Indianapolis-based Republic flies about a dozen regional jets for Frontier, primarily to smaller cities.