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Sun, Jul 24, 2011

Delta, US Airways Welcome Tentative DOT Approval Of Slot Swap

Agreement Would Transfer Flying Rights In New York And Washington, D.C.

Delta Air Lines and US Airways said Thursday saying they welcome the decision by the Department of Transportation to tentatively approve the proposed slot transaction at New York-LaGuardia and Washington-Reagan National airports.

"Upon final approval we intend to move forward with the plan, as conditioned by the department, which will enhance competition and allow the airlines to improve service, consumer choice, modernize facilities and create jobs at both airports," The airlines said in a jointly-released statement.

On May 23, Delta and US Airways announced a new agreement to transfer takeoff and landing rights at New York's LaGuardia and Washington D.C.'s Reagan National airports, which will enable Delta and US Airways to expand service and increase competition at two of the nation's key cities, and provide the opportunity for additional access to LaGuardia and Reagan National for new entrants and airlines with a limited presence at the airports.

Under the agreement, Delta would acquire 132 slot pairs at LaGuardia from US Airways and US Airways would acquire from Delta 42 slot pairs at Reagan National and the rights to operate additional daily service to Sao Paulo, Brazil in 2015, and Delta would pay US Airways $66.5 million in cash. In addition, the airlines will divest 16 slot pairs at LaGuardia and eight slot pairs at Reagan National to airlines with limited or no service at those airports. The completion of the transaction is subject to certain closing conditions, including government and regulatory approvals. A slot pair is the authority to operate one takeoff and one landing.

FMI: www.delta.com, www.usairways.com

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