Denver International Airport (DEN) has altered rent structures for concessionaires, rental car operators and airline partners in an effort to ease the financial difficulties brought on by the COVID-19 virus dramatically decreasing demand for travel.
From April through June, DEN has waived the minimum annual guarantee (MAG) charged to concessionaire and rental car partners, switching to percentage rent as outlined in their leases, with those partners also able to defer three months of rent until later this year, says Alex Renteria, spokeswoman for the airport.
At the request of its airline partners, DEN’s signatory airlines have been granted the flexibility to delay payment for three months of facility rentals and landing fees. Those amounts, which total approximately $60 million, must be paid by year end, she says.
The airport has frozen nonessential expenditures as part of its own cost reduction measures. To date, the Great Hall renovation and gate expansion projects are continuing to move forward, “but we continue to analyze all projects to ensure that DEN remains financially healthy and is in a strong position to recover as quickly as possible,” she says. “This is a difficult time for the entire aviation industry and the airport is evaluating all aspects of its capital plan.”