The mayor decided Monday to delay opening the new Denver International Airport because of problems with an automated baggage system.
Mayor Wellington Webb was expected to make the announcement at an afternoon news conference, said Briggs Gamblin, Webb's spokesman. He would not comment further.The announcement has been expected since Thursday when the $193 million computerized baggage system failed crucial tests.
For every day the airport opening is delayed, the city must raise $1 million - $500,000 for servicing bond debt and $500,000 for ongoing expenses.
Moody's Investor Services said that after Webb's news conference it would announce whether it would change its rating for $3.1 billion in airport revenue bonds. The bonds are rated Baaa1, two notches above "junk bond" status.
The city "must make clear that it is fully attentive to the security interest of its bondholders," a Moody's statement said.
While Stapleton International Airport continues to handle air traffic, the delay affects the finances of not only the city and bondholders, but also shops and restaurants that have opened at the new airport.
Webb has said that Continental and United airlines, the airport's two largest carriers, do not want to operate there if they have doubts about the baggage system.
BAE Automated Systems Inc., which designed the network of rail cars that will move baggage, spent last weekend trying to isolate problems with the system. City officials have said BAE engineers have to customize computer software to handle each problem.