Air Service Incentive Program

Goal: To increase nonstop scheduled air service and passenger traffic at Denver International Airport, and to sustain this service over the long-term.

  • Promotional benefits offered to any air carrier announcing qualifying scheduled passenger service between Sept. 1, 2018 and August 31, 2019 (one-year period)
  • Incentive funds are limited and may expire at any time during the course of this one-year period

Promotional Period

The Promotional Period is defined as the first consecutive 12 or 24 months immediately following the initiation of eligible new service.

Qualifying Criteria

  • Carrier must offer daily nonstop scheduled passenger service from Denver International Airport to the eligible market; if service is less than five times weekly, the marketing incentive benefit will be prorated as detailed in the table (operational incentive is not prorated)
  • The carrier must provide the service for 12 or 24 consecutive months; seasonal service is also eligible; if service is seasonal the marketing incentive benefit will be prorated accordingly as detailed in the table (operational incentive is not prorated)
    • The 12-month period applies to international markets that already have nonstop service from Denver, and to new entrant domestic carriers that are serving currently served domestic markets
    • The 24-month period applies to all other markets, both international and domestic
  • Charter operations, including operators under Parts 121, 135 and 380, 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 is subject to final approval by the appropriate officials at the City and County of Denver
  • If the carrier does not meet the minimum schedule level (defined below) for a period of 12 or 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 refunds credited to the carrier shall be refunded to the City and County of Denver

Promotional Incentive

The Promotional Incentive includes an operational incentive and a marketing incentive; incentive amounts are outlined below.

Operational Incentive:

  • The operational incentive is administered by the City & County of Denver, Department of Aviation
  • Operational incentives are administered through credits
  • Operational incentive available to carriers:
    • Refund per enplaned passenger
  • The refund per enplaned passenger cannot exceed the carrier’s cost to operate at DEN
  • The carrier will report enplanement numbers to DEN monthly at the same time as the carrier reports total passengers numbers to DEN

Marketing Incentive:

  • The marketing incentive is administered by the City & County of Denver, Department of Aviation
  • The carrier will develop a marketing plan that will be approved by the Department of Aviation Project Manager assigned to administer the contract
  • The marketing plan will promote public and industry awareness of the new services offered by the carrier at Denver International Airport, and will promote travel to/from/through Denver International Airport
  • The Department of Aviation Project Manager is responsible for executing the marketing plan in cooperation with the carrier
  • An initial draft of the marketing plan must be submitted to the Department of Aviation Project Manager within 60 business days of airline’s notification to DEN that the carrier intends to take the marketing incentive; if the carrier does not provide a draft marketing plan within 60 business days, the City & County of Denver reserves the right to end negotiations

Note: Carrier can choose to increase marketing incentive by decreasing the operational incentive; the maximum incentive amount remains the same.  If a new domestic entrant is providing service to an unserved destination, the new domestic entrant can choose either the “Unserved Destination” option or the “New Entrant” option.

Eligible Markets

Domestic

  • Domestic markets without scheduled or charter passenger service are eligible (unserved by scheduled or charter service as of Sept. 1, 2018)
  • Domestic markets that are unserved from Denver but had nonstop scheduled or charter service from Denver within the one year prior to a carrier announcing new service are not eligible
  • Domestic markets that fall under the federally subsidized Essential Air Service (EAS) program are not eligible
  • A new domestic carrier (new entrant) can receive a marketing incentive even if the service they are providing is to a domestic market that is currently served nonstop from Denver; note that the new carrier incentive, if it is to a market that is currently served, is only eligible for an incentive for a period of one year (12 months)
  • A new domestic carrier (new entrant) is not eligible for an incentive if the market(s) served are not deemed eligible markets, as described above

International

  • All international markets are eligible including currently served markets; currently served international markets are only eligible for an incentive for a period of one year (12 months) and markets without nonstop service are eligible for an incentive for a period of two years (24 months)
  • The carrier adding new service must not have operated service to the market (or a market within 100 miles) over the preceding 12-month period

Minimum Service Level

The carrier may adjust its frequency of service during the term of the agreement; however, the carrier shall not decrease the frequency of service to less than fifty percent (50%) of the initial amount of initially published service, the calculation of which will be averaged over the course of a year.

Primary Carrier

  • The primary carrier is defined as the marketing carrier for the new service
  • Denver International Airport will enter into incentive agreements with only the primary carrier

Notice of Intent to Enter into Incentive Agreement

A carrier eligible for an incentive must notify Denver International Airport within 60 days of service announcement of the intention to take advantage of the incentive.

Signed Agreement Requirement

A carrier eligible for an incentive must sign the agreement within 45 business days of receipt from the City & County of Denver.  If the carrier does not sign the agreement within 45 business days, the City & County of Denver reserves the right to end negotiations.