Justice Department Still Not Completely Satisfied As Airlines
Trade Positions In New York, Washington, DC
The
DOT has given final approval to a slot swap proposed by Delta and
US Airways that will mean changes in the number of flights each
airline offers at LaGuardia and Reagan National airports.
The two airlines have been working on the deal for more than two
years. 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 the
carriers 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 new agreement, Delta will acquire 132 slot pairs at
LaGuardia from US Airways and US Airways will acquire from Delta 42
slot pairs at Reagan National, as well as the rights to operate
additional daily service to Sao Paulo, Brazil in 2015. Delta also
will 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.
In a joint news release, the two airlines expressed their
appreciation to the DOT, which approved the transaction on October
10. The carriers said the DOT’s final order, subject to
certain conditions, represents a clear recognition by the Obama
Administration that the slot transaction is in the public interest
because of the service benefits and efficiencies that would result
in both New York and Washington, DC.
The Justice Department, however, was not so certain. The
Street reports that the agency plans to look into possible
anti-trust implications at Reagan National Airport.
That didn't stop the airlines from issuing very positive
statements. “We want to thank DOT and the FAA for their final
approval of the slot transaction, which will enhance competition,
create new jobs, reduce air space congestion in New York City and
greatly increase travel choices for our customers in New
York,” said Richard Anderson, Delta's chief executive
officer. “We agree with the DOT that the slot transaction has
significant consumer benefits in both New York and Washington, DC,
and look forward to implementing our agreement with US Airways and
rolling out our expanded LaGuardia schedule next year. We also look
forward to bringing substantial new construction and service jobs
to New York as facilities are expanded and modernized to create a
Delta hub operation.”
“We want to thank DOT Secretary Ray LaHood, FAA Administrator
Randy Babbitt, and their teams, and applaud their hard work over
the past two plus years. We appreciate their willingness to view
the overall, indivisible benefits of the transaction to both
Washington, D.C., and New York after a thorough review,” said
US Airways Chairman and CEO Doug Parker. “The decision of DOT
and FAA is a great example of the regulatory process working to the
benefit of consumers by promoting competition and expanding
consumer choice, fostering economic development and creating jobs
in both Washington, D.C., and New York. We look forward to the
opportunity to better serve our existing and new customers in the
Washington region and small and medium-sized communities around the
eastern United States.”