Denver International Airport (DIA) - Case Study Example

Such changes may also delay completion of a project and inflate involved costs. This paper summarizes a case study on Denver International Airport in which the original plan that was formulated without incorporating stakeholders’ interest and ideas led to subsequent reviews of developed plan and consequences on the stakeholders. The paper also discusses relevant topics to the case and possible incorporation of the topics’ concepts into the case. Summary of the case The case involves a decision that was made for construction of the Denver International Airport and the involved consequences on the construction process and stakeholders to the decision.

The decision followed increasing demand for services in the city and the construction offered benefits to both Denver and the Federal Aviation Administration that recognized the poor condition of the then city’s airport and its vulnerability to bad weather conditions. Original plans were developed and implementation began without incorporation of airlines that preferred operations from the then existing airport. The airlines alienated themselves from the plans because they were opposed to the project but sought involvement after noting that the project was bound for implementation.

Such an entry prompted changes such as alteration of baggage handling system with a resultant delay in the official opening of the airport. Major issues in the case are development of the project’s strategic plan, financing of the plan and implementation of the plan. Strategic planning The Denver International Airport project was realistic because of the need that it offered to meet in the city’s air transport. The city is geographically away from other cities and air transport is the most suitable means.

Denver also needed expansion in air transport facilities because of demand that was projected to increase and could undermine the then Stapleton Airport and its backup at Front Range Airport. Expansion of the airport further offered investment opportunities from international airlines and its strategic location for international flights enhanced its potentials. The project’s strengths included modern design and layout, optimization potentials, expansion potentials, support from the city, FAA and United Airlines, and high borrowing potential.

Other strengths include environmental conservation and easy traffic control. Major weaknesses for the project were long distance from other cities, reliance on borrowed capital, high costs, lack of close industrial packs and possibility of unavailability qualities labor. Major opportunities were growth probability, creation of employment opportunities, commitment from cargo carriers, facilitated investments in the surrounding and development of a centre for air transport while identifiable weaknesses included poor passenger flow, high maintenance costs unhealthy competitions among airlines and competition from Front Range Airport.

The Denver city, Denver International Airport management, airlines, and the Federal Aviation Administration were the stakeholders to the in the case. The United Airline did not support the plan until its realization was eminent and United Airline opposed the plan to expand Front Range Airport because the government’s involvement would liberalize operations and disadvantage high cost carriers. The airlines’