DIA bursting at the seams

Airport officials say they understand the importance of keeping costs down. They've been looking for new ways to bolster non-airline revenue from parking, expanding oil and gas drilling and spurring development of a pet kennel on airport land.

"The old model of 'well, we'll just rate-base these costs back to the airlines' is not going to work," Covington said. "We can't do that anymore because the airlines can't pay it."

The more revenue DIA takes in, the more it can pump into defraying the costs of expansion projects.

Perhaps the most difficult challenge, though, is dealing with volatility, especially considering that it takes years to plan, design and construct expansion facilities and upgrades. Another terrorist attack or an economic downturn or a geopolitical event could impact demand immediately and drastically.

The key, DIA officials say, is being able to adapt to market changes.

"Maintaining flexibility in uncertainty is our biggest challenge," Busch said. "We want to make the best educated move we can to be efficient and to optimize existing facilities before we start building more. It's like playing a game of chess, and we have to figure out the best move to make."

INFOBOX

Where will the $1.2 billion go? Denver International Airport plans to issue $1.2 billion in bonds in coming years to fund a variety of projects as it seeks to accommodate growth both inside the airport and out.* Some projects on the agenda:

CONCOURSE EXPANSION

Involves adding 10 gates onto Concourse C and building a commuter facility that can handle 23 regional jets, similar to the one DIA recently built on Concourse B. Also includes a taxi-lane extension

* Estimated cost: $266 million

* Estimated completion: spring 2010

SECURITY

Involves expanding and adding security lanes and possibly creating another screening area in the main terminal

* Estimated cost: Up to $6.7 million

* Estimated completion: By 2013

PARKING

Involves building parking garages near the airport's main terminal and a third shuttle lot, adding thousands of new spaces

* Estimated cost: $124 million

* Estimated completion: One new garage should open later this year; other expansions to be completed by 2013. BAGGAGE

Involves building a new system to route outbound and inbound luggage using conventional methods such as conveyor belts. Also involves upgrading baggage sorting and claim carousels and moving explosives detection equipment from Concourse B to the terminal

* Estimated cost: More than $90 million

* Estimated completion: By 2013

TRAIN SYSTEM

Involves upgrading the computer hardware and software that routes the underground trains shuttling passengers between the main terminal and the concourses. Also involves extending the tracks south of the terminal to accommodate more trains

* Estimated cost: $25 million

* Estimated completion: By 2013

Note: *Some Of Dia'S Projects Include Money From Federal Grants. Source: Dia