Wed, May 05, 2010
Airlines Swap Slots At Reagan National And LaGuardia
The U.S. DOT has decided to allow Delta Air Lines and US
Airways to swap slots at Reagan Washington National Airport (DCA)
and New York's LaGuardia Airport (LGA), subject to the condition
that the carriers divest themselves of a number of slots at both
airports to preserve competition.
"This decision will enable the two airlines to carry out their
transaction while making sure competition is preserved at both
airports," U.S. Transportation Secretary Ray LaHood said.
On Aug. 12, 2009, the two carriers requested approval for their
transaction, which would include US Airways receiving 42 pairs of
daily slots at Reagan Washington National in exchange for Delta
obtaining 125 slot pairs at LaGuardia. A slot is the right to
take off or land at an airport where these rights are limited.
The Department will require the carriers divest 14 pairs of
daily slots at Reagan National and 20 pairs at LaGuardia and sell
them through a blind sale to airlines that currently have little or
no service at these airports, with Delta and US Airways retaining
the proceeds from the sale. Slot pairs would be sold in
bundles large enough to ensure that a purchaser would have a
sufficient number of slots to provide meaningful new
competition. The final decision incorporates most of the
major elements of the tentative decision announced on Feb. 9.
While Delta and US Airways made a counterproposal in which they
would transfer 15 pairs of slots at LaGuardia and 4 ½ pairs
at Reagan National to several smaller carriers, in today's decision
the Department said the carriers' counteroffer would be
insufficient to preserve competition at the two airports.
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