United-United Express contracts under investigation

From Associated Press reports\nDENVER -- The Colorado attorney general is investigating whether some United Airlines practices are stifling competition in the state, a newspaper reported.\nKen Salazar is examining contracts between United and its regional United Express partners to determine whether the deals limit competitive air service from smaller Colorado cities into Denver, The Denver Post reported in Sunday's editions.\nSalazar also said his office is concerned that a plan to build a new regional-jet terminal for United at Denver International Airport might perpetuate a "monopoly over regional air service."\nUnited officials did not immediately return a call from The Associated Press Saturday. An airline spokesman told the newspaper that United is willing to work with Salazar's office.\nSalazar declined comment to The AP through a spokesman Saturday.\nUnited Express is the only carrier connecting many Colorado communities to Denver, and some residents of Alamosa, Pueblo, Durango, Montrose and Grand Junction have complained about a lack of competition in air service. Aviation experts said it isn't clear whether small towns could support a second airline.\nUnited is the dominant carrier at DIA, followed by Denver-based low-fare carrier Frontier Airlines.\nThe regional terminal is part of talks between United and DIA to renegotiate the carrier's lease under its Chapter 11 bankruptcy filing.\nOne factor in the talks is Frontier's request to take over lesser-used United gates. Frontier has said it may expand elsewhere if it cannot get more gates in Denver.\nIf United and the airport cannot agree on a lease that would free up the gates, the airport might have to expand the A Concourse to accommodate Frontier and drop plans for United's commuter-jet terminal, city officials have said.\nSalazar said he has been concerned with United's market power at DIA since he took office in 1999.\nSalazar said his office is closing an inquiry into possible predatory pricing by United, and there was not enough evidence to show United engaged in unlawful pricing.