Answer these five questions after reading the case study. Initial posts include answering the entire discussion board question(s) and must show depth and insight on the topic.
•Perform an analysis for strengths, weaknesses, opportunities, and threats (SWOT) on the decision to build DIA
•Who are the stakeholders and what are their interests or objectives?
•What appears to be the single greatest risk in the decision to build DIA?
•What is the function of the project management team (PMT) and why were two companies involved?
•When did the effectiveness of the project management team begin to be questioned?
Reference and citation of other materials (journals, websites, etc.) in the post and responses in APA format.
Denver International Airport (DIA) BACKGROUND How does one convert a $1.2 billion project into a $5.0 billion project? It’s easy. Just build a new airport in Denver. The decision to replace Denver’s Stapleton Airport with Denver International Airport (DIA) was made by well-intentioned city officials. The city of Denver would need a new airport eventually, and it seemed like the right time to build an airport that would satisfy Denver’s needs for at least fifty to sixty years. DIA could become the benchmark for other airports to follow. A summary of the critical events is listed below: 1985: Denver Mayor Federico Pena and Adams County officials agree to build a replacement for Stapleton International Airport. Project estimate: $1.2 billion 1986: Peat Marwick, a consulting firm, is hired to perform a feasibility study including projected traffic. Their results indicate that, depending on the season, as many as 50 percent of the passengers would change planes. The new airport would have to handle this smoothly. United and Continental object to the idea of building a new airport, fearing the added cost burden. May 1989: Denver voters pass an airport referendum. Project estimate: $1.7 billion 517 518 DENVER INTERNATIONAL AIRPORT (DIA) March 1993: Denver Mayor Wellington Webb announces the first delay. Opening day would be postponed from October, 1993 to December 1993. (Federico Pena becomes Secretary of Transportation under Clinton). Project estimate: $2.7 billion October 1993: Opening day is to be delayed to March 1994. There are problems with the fire and security systems in addition to the inoperable baggage handling system. Project estimate: $3.1 billion December 1993: The airport is ready to open, but without an operational baggage handling system. Another delay is announced. February 1994: Opening day is to be delayed to May 15, 1994 because of baggage handling system. May 1994: Airport misses the fourth deadline. August 1994: DIA finances a backup baggage handling system. Opening day is delayed indefinitely. Project estimate: $4 billion plus. December 1994: Denver announces that DIA was built on top of an old Native American burial ground. An agreement is reached to lift the curse. AIRPORTS AND AIRLINE DEREGULATION Prior to the Airline Deregulation Act of 1978, airline routes and airfare were established by the Civil Aeronautics Board (CAB). Airlines were allowed to charge whatever they wanted for airfare, based on CAB approval. The cost of additional aircraft was eventually passed on to the consumer. Initially, the high cost for airfare restricted travel to the businessperson and the elite who could afford it. Increases in passenger travel were moderate. Most airports were already underutilized and growth was achieved by adding terminals or runways on existing airport sites. The need for new airports was not deemed critical for the near term. Following deregulation, the airline industry had to prepare for open market competition. This meant that airfares were expected to decrease dramatically.