[DENVER INTERNATIONAL AIRPORT]
Exhibit 10.1(d)
[DENVER INTERNATIONAL AIRPORT]
May 5, 2015
Frontier Airlines, Inc.
Attn: James Dempsey
7001 Tower Road
Denver, CO 80249
Dear Mr. Dempsey,
This Letter of Agreement summarizes the essential business terms by which the City and County of Denver, on behalf of its Department of Aviation, will permit Frontier Airlines, Inc. (“Frontier”) to reconfigure its leasehold at Denver International Airport (“DEN”).
On June 9, 2014, Frontier and the City entered into an Airport Use and Lease Agreement (the “Agreement”), which will expire on December 31, 2016. In February 2015, Frontier and DEN staff began discussions concerning the possible reconfiguration of the Demised Premises described in the Agreement in order to better align Frontier’s leasehold with its current service schedule. Based on these discussions, the parties have agreed to the following business terms:
| 1. | Frontier will release between 20,500 and 21,500 square feet of specifically identified signatory and non-signatory space. |
| 2. | Frontier will release preferential gates A25, A27, A29, A31, A24, A26, A28, and A30. |
| 3. | Frontier will retain or expand to gates A32, A34, A36, A38, A40, A42, A44 and A46 as preferential gates. |
| 4. | The City will work with Spirit Airlines to relocate Spirit from gate A44 to another location. In addition, the City will vacate its Radio Shop for Frontier to occupy. |
| 5. | Frontier will reimburse the City for the costs incurred in order to complete the actions listed in Paragraph 4. These costs shall not exceed $***** and will be applied towards the procurement and installation of comparable common use technology which currently exists at A44 and A46. Frontier agrees to reimburse the City for this work within thirty (30) days upon receipt of invoice based on actual costs. |
| ***** | Confidential portions of the material have been omitted and filed separately with the Securities and Exchange Commission. |
| 6. | Frontier will have full access to two City common use gates, separate from the gates listed in paragraph 7. Frontier will continue to operate their international arrivals using gates A33, A35 or A37. |
| 7. | In light of the anticipated conversion of gates A42 and A44 to international gates in First Quarter 2016, Frontier agrees that they will operate international arrivals out of these gates as a priority. The City agrees to provide City common use gates as overflow for Frontier’s international flights at A33, A35 or A37. For clarification the priority on gates A42 and A44 will be as follows; |
| 1. | Frontier Airlines International Arrivals |
| 2. | Frontier Airlines Domestic Arrivals |
| 3. | Other Airline International Arrivals |
| 8. | The transition to the new gates listed in paragraph 3 will take place during the months of May and June 2015 and be completed by July 1, 2015 for gate changes and July 31, 2015 for facility changes. |
| 9. | Frontier agrees to coordinate regularly with the City on the sequencing and timing of the transition in order to meet the deadlines set out in paragraph 8 above. |
| 10. | File Agreement will be amended to reflect these accommodations. The parties intend for the Agreement amendment to be effective on July 1, 2015 and to continue in effect through the remaining term of the Agreement (December 31, 2016), The parties agree to work cooperatively to accomplish the required amendments. |
| 11. | This Letter of Agreement will be in full force and effect on July 1, 2015. Any changes to this Letter of Agreement will require the consent of both Frontier and DEN. All terms and conditions are subject to the review and confirmation of Denver City Council through amendment to the Use and Lease Agreement. Notwithstanding the above, the City shall exercise reasonable business efforts to implement the paragraph 4 gate relocations prior to July 1, 2015. |
| 12. | Both parties will use best efforts to sign an amendment to the Agreement in advance of July 1, 2015 however the parties acknowledge that the reduction in rent payable will be adjusted in line with the gate and other space changes from July 1, 2015. |
| 13. | All airport related revenue sharing/concession credit will be payable pro-rata on the basis of space used in the airport during the period of January 1, 2015 to June 30, 2015 and thereafter from July 1, 2015 for the remainder of the lease term. |
| 14. | All space changes are set out in Schedule A (attached) of this Letter of Agreement. |
The City will have to commit considerable staff resources, undertake extensive planning, expend costs, and coordinate with other airlines to accommodate and support the reconfiguration of Frontier’s leasehold. To initiate this effort, the City requires certainty that Frontier agrees with the essential business terms enumerated above. For this reason, the City has reduced the deal points to writing and is requesting Frontier’s approval of this Letter of Agreement on or before May 5, 2015.
Frontier, by signing and returning this letter agreement to DEN, affirms that they have read the terms listed above and agree to the terms and conditions contained herein.
The City is committed to retaining Frontier as our hometown airline and hopes that the reconfiguration of Frontier’s leasehold will support your continued presence at DEN for many years to come,
Sincerely,
| /s/ Kim Day | /s/ James Dempsey | |||
| Kim Day | James Dempsey, | |||
| Chief Executive Officer | Chief Financial Officer | |||
| Denver International Airport | Frontier Airlines |
Attached: Schedule A
SCHEDULE A
| Current Space | Tenant Finish | Sq. Ft. | Return Y/N or New | After Changes | Tenant Finish | Sq. Ft. | ||||||||||||||||
| Ticket Counter | Ticket Counter | |||||||||||||||||||||
| R16-2-6-E6-N27-1 | Yes | 1070.30 | No | R16-2-6-E6-N27-1 | Yes | 1070.30 | ||||||||||||||||
| Ticket Office | Ticket Office | |||||||||||||||||||||
| R16-1-6-E3-N24-3 | Yes | 1233.60 | No | R16-1-6-E3-N24-3 | Yes | 1233.60 | ||||||||||||||||
| Baggage Service Office | Baggage Service Office | |||||||||||||||||||||
| R16-1-4-E4-N23-1 | Yes | 300.00 | No | R16-1-4-E4-N23-1 | Yes | 300.00 | ||||||||||||||||
| R16-1-5-E3-N24-1 | Yes | 460.6 | No | R16-1-5-E3-N24-1 | Yes | 460.60 | ||||||||||||||||
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| Terminal Total | 3064.50 | Terminal Total | 3064.50 | |||||||||||||||||||
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| Hold Rooms | Hold Rooms | |||||||||||||||||||||
| New | R17-2-3-E16-S4-1 - A46 | Yes | 1988.10 | |||||||||||||||||||
| New | R17-2-3-E11-S4-1 - A44 | Yes | 2141.00 | |||||||||||||||||||
| R17-2-3-E8-S4-1 - A42 | Yes | 2143.50 | No | R17-2-3-E8-S4-1 - A42 | Yes | 2143.50 | ||||||||||||||||
| R17-2-3-E5-S4-1-A40 | Yes | 1997.50 | No | R17-2-3-E5-S4-1 - A40 | Yes | 1997.50 | ||||||||||||||||
| R17-2-3-W11-S4-1 -A38 | Yes | 1907.70 | No | R17-2-3-W11-S4-1 - A38 | Yes | 1907.70 | ||||||||||||||||
| R17-2-3-W18-S4-1 - A34/A36 | Yes | 3907.80 | No | R17-2-3-W18-S4-1 - A34/A36 | Yes | 3907.80 | ||||||||||||||||
| R17-2-3-W23-S4-1 - A32 | Yes | 1925.30 | No | R17-2-3-W23-S4-1 - A32 | Yes | 1925.30 | ||||||||||||||||
| R17-2-3-W26-S4-1 - A30 | Yes | 1874.00 | Yes | |||||||||||||||||||
| R17-2-3-W28-S4-1 - A28 | Yes | 2059.70 | Yes | |||||||||||||||||||
| R17-2-3-W28-N1-1 - A27/A31 | Yes | 5989.00 | Yes | |||||||||||||||||||
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| Hold Room Total | 21804.50 | Hold Room Total | 16010.90 | |||||||||||||||||||
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| Ramp Aircraft Parking(Ln. Ft.) | 2086.50 | Ramp Aircraft Parking (Ln. Ft.) | 1138.40 | |||||||||||||||||||
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| Office Space | Office Space | |||||||||||||||||||||
| R17-2-3-W10-S4-1 | Yes | 2386.50 | Yes | |||||||||||||||||||
| R17-2-3-W13-S4-3 | Yes | 373.80 | No | R17-2-3-W13-S4-3 | Yes | 373.80 | ||||||||||||||||
| R17-2-3-W13-S4-1 | Yes | 1058.50 | No | R17-2-3-W13-S4-1 | Yes | 1058.50 | ||||||||||||||||
| R17-2-4-W20-S5-1 | Yes | 2369.70 | Yes | |||||||||||||||||||
| R17-2-4-W20-N1-1 | Yes | 1082.30 | Yes | |||||||||||||||||||
| R17-2-4-E19-S3-2 | Yes | 130.30 | No | R17-2-4-E19-S3-2 | Yes | 130.30 | ||||||||||||||||
| R17-2-9-W0-S9-1 | Yes | 309.60 | Yes | |||||||||||||||||||
| R17-2-9-W0-S9-4 | Yes | 58.80 | Yes | |||||||||||||||||||
| New | R17-2-4-E18-S5-1 | Yes | 1253.70 | |||||||||||||||||||
| New | R17-2-4-E18-N2-5 | Yes | 170.00 | |||||||||||||||||||
| New | R17-2-4-E21-N2-2 | Yes | 603.70 | |||||||||||||||||||
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| Total Office Space | 7769.50 | Total Office Space | 3590.00 | |||||||||||||||||||
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| Operations Space | Tenant Finish | Current Exhibits | ||||||||||||||||||||
| R17-2-2-W27-N5-2 | Yes | 85.00 | Yes | |||||||||||||||||||
| R17-2-2-W27-S5-2 | Yes | 85.00 | Yes | |||||||||||||||||||
| R17-2-2-W24-S3-1 | No | 1778.40 | Yes | |||||||||||||||||||
| R17-2-2-W22-N1-3 | Yes | 1084.60 | Yes | |||||||||||||||||||
| R17-2-2-W23-S4-1 | Yes | 563.40 | Yes | |||||||||||||||||||
| R17-2-2-W23-S2-1 | Yes | 559.10 | Yes | |||||||||||||||||||
| R17-2-2-W22-NO-2 | Yes | 188.80 | Yes | |||||||||||||||||||
| R17-2-2-W23-S4-2 | Yes | 484.20 | Yes | |||||||||||||||||||
| R17-2-2-W13-S4-1 | No | 776.70 | Yes | |||||||||||||||||||
| R17-2-2-W13-S5-2 | Yes | 83.30 | Yes | |||||||||||||||||||
| R17-2-2-E2-S7-1 | Yes | 420.60 | No | R17-2-2-E2-S7-1 | Yes | 420.60 | ||||||||||||||||
| R17-2-2-E5-S2-4 | Yes | 240.10 | Yes | |||||||||||||||||||
| R17-2-1-W28-S3-2 | Yes | 148.20 | Yes | |||||||||||||||||||
| New | R17-2-2-E8-S5-1 | Yes | 84.99 | |||||||||||||||||||
| New | R17-2-2-E11-S4-2 | Yes | 4300.00 | |||||||||||||||||||
| New | R17-2-2-E12-S4-2 | No | 782.70 | |||||||||||||||||||
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| Total Operations | 6497.40 | Total Operations | 5588.29 | |||||||||||||||||||
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May 1, 2015
| Current Space | Tenant Finish | Sq. Ft. | Return Y/N or New | After Changes | Tenant Finish | Sq. Ft. | ||||||||||||||||
| Basement Space (Written off space) | ||||||||||||||||||||||
| R17-2-1-W18-S4-3 | No | 903.00 | Yes | |||||||||||||||||||
| R17-1-1-W11S6-3 | No | 400.00 | Yes | |||||||||||||||||||
| New | Caged Area | No | 500.00 | |||||||||||||||||||
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| Total Basement | 1303.00 | Total Basement | 500.00 | |||||||||||||||||||
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May 1, 2015
| Current Space | After July Changes | |
| SIGNATORY SPACE - TERMINAL | SIGNATORY SPACE - TERMINAL | |
| Ticket Counter | Ticket Counter | |
| R16-2-6-E6-N27-1 | R16-2-6-E6-N27-1 | |
| Ticket Office | Ticket Office | |
| R16-1-6-E3-N24-3 | R16-1-6-E3-N24-3 | |
| Baggage Service Office | Baggage Service Office | |
| R16-1-4-E4-N23-1 | R16-1-4-E4-N23-1 | |
| R16-1-5-E3-N24-1 | R16-1-5-E3-N24-1 | |
| SIGNATORY SPACE - CONC A | SIGNATORY SPACE - CONC A | |
| Hold Rooms | Hold Rooms | |
| R17-2-3-E16-S4-1 - A46 | ||
| R17-2-3-E11-S4-1 - A44 | ||
| R17-2-3-E8-S4-1 - A42 | R17-2-3-E8-S4-1 - A42 | |
| R17-2-3-E5-S4-1 - A40 | R17-2-3-E5-S4-1 - A40 | |
| R17-2-3-W11-S4-1-A38 | R17-2-3-W11-S4-1 - A38 | |
| R17-2-3-W18-S4-1 - A34/A36 | R17-2-3-W18-S4-1 - A34/A36 | |
| R17-2-3-W23-S4-1 - A32 | R17-2-3-W23-S4-1 - A32 | |
| R17-2-3-W26-S4-1 - A30 | ||
| R17-2-3-W28-S4-1 - A28 | ||
| R17-2-3-W28-N1-1 - A27/A31 | ||
| Office Space | Office Space | |
| R17-2-3-W10-S4-1 | ||
| R17-2-3-W13-S4-2 | ||
| R17-2-3-W13-S4-3 | ||
| R17-2-3-W13-S4-1 | ||
| R17-2-4-W20-S5-1 | ||
| R17-2-4-W20-N1-1 | ||
| R17-2-4-E19-S3-2 | R17-2-4-E19-S3-2 | |
| R17-2-9-W0-S9-1 | ||
| R17-2-9-W0-S9-4 | ||
| R17-2-5-W5-N3-2 | ||
| R17-2-5-W5-N3-1 | ||
| R17-2-5-W4-N5-1 | ||
| R17-2-5-W4-N5-2 | ||
| Operations Space | ||
| R17-2-2-W27-N5-2 | ||
| R17-2-2-W27-S5-2 | ||
| R17-2-2-W24-S3-1 | ||
| R17-2-2-W22-N1-3 | ||
| R17-2-2-W23-S4-1 | ||
| R17-2-2-W23-S2-1 | ||
| R17-2-2-W22-N0-2 | ||
| R17-2-2-W23-S4-2 | ||
| R17-2-2-W13-S4-1 | ||
| R17-2-2-W13-S5-2 | ||
| R17-2-2-E2-S7-1 | R17-2-2-E2-S7-1 | |
| R17-2-2-E5-S2-4 | ||
| R17-2-l-W28-S3*2 | ||
| R17-2-1-E19-S5-1 | ||
| R17-2-2-E11-S4-2 | ||
| R17-2-2-E12-S4-2 | ||
| Basement Space (Written off space) | ||
| R17-2-1-W18-S4-3 | New Caged Area | |
| R17-1-1-W11S6-3 | New Office Area | |
| Total Basement | Total Basement | |
| Current Space | After July Changes | |
| TOTAL SIGNATORY | TOTAL SIGNATORY | |
| Concourse A Non-Signatory | ||
| Office | ||
| R17-2-3-W7-S4-1 | ||
| Concourse A Non-Signatory Operations | ||
| R17-2-2-W13-S4-1 | ||
| Terminal Non-Signatory Ticket Counter | ||
| R16-1-6-E6-N25-1 | ||
