Frontier Airlines plans to cut gate capacity, office space and check-in counters at Denver International Airport to help the carrier reorganize under Chapter 11 bankruptcy.

The Denver-based airline and DIA reached a new lease agreement that allows Frontier to drop five gates on Concourse A - taking its gate capacity to 17 from 22 - pending court approval. The airline also will close two check-in counters in the terminal.

"This is an important and positive step forward in our reorganization process," Frontier President and CEO Sean Menke said in a statement. "We now have the space at DIA that fits our operational needs, while meeting the financial needs of our business plan going forward. We are also sending an important message that we are committed to DIA, the state of Colorado and all of our loyal passengers for the long term."

The agreement also allows Frontier to settle unpaid debt with the airport.

Frontier owed DIA roughly US$3.4 million when it filed Chapter 11 on Apr. 10, in unpaid landing fees, rentals and lease charges, according to court documents.

Additionally, the airline owed DIA US$2.4 million in property taxes from 2007.

Under the agreement, the airport will credit Frontier US$5.2 million to be used to offset rent and fee obligations to DIA.

Frontier will get US$3 million of those funds on Sep. 15, if the court approves the motion at a hearing on that date.

"The assumption of its lease means that Frontier is committed to Denver and the millions of passengers that travel through our facility each year," DIA Aviation Manager Kim Day said in a press release. "All of our airline partners are facing trying economic times, and we are committed to doing everything we can as an airport to keep their costs down while ensuring that the traveling public in this region will continue to have access to a strong flight schedule and route structure from DIA."