Sat, Sep 04, 2010
Slot Swap Stalled Over FAA Conditions
Delta Airlines may be considering re-opening its efforts to add
additional slots at New York's LaGuardia Airport (KLGA) following
Southwest's successful expansion in Newark (KEWR).
Delta and US Airways had worked a slot-swap deal that would have
increased Delta's presence at LaGuardia, but that effort was
shelved early in July when the FAA said they would have had to make
some concessions to rivals. Southwest was not one of those airlines
included by the FAA.
Now, Bloomberg News reports that aviation analyst
Helane Becker says that since Southwest has gotten what it
wanted from the FAA at Newark, Delta and US Airways could use that
as a leveraging tool with the agency. They could argue, Beker said,
that Southwest's previous objections were no longer a factor in
their slot-swap.
Delta had proposed giving US Airways 37 slots at Washington's
Reagan National Airport along with some international routes in
exchange for 110 slots at LaGuardia. The FAA had agreed, if the two
airlines would also make 34 pairs of slots available to other
airlines with limited or no service at those airports, though
Southwest was not one of the airlines named. Delta and US Airways
balked at the conditions and walked away from the deal.
Now, analysts say that because Southwest is beefing up its
service in Newark, the competition issue may be less of a factor.
But Southwest still says it would be interested in slots at
LaGuardia should they become available, and it's not certain if the
courts would see slots at Newark as being equal to slots at
LaGuardia when it comes to competition.
Still, Analyst William Swelbar, who specializes in airline
economics for MIT, told Bloomberg "these talks will happen." He
also said that other airlines will be watching closely, as the
outcome could set a precedent for future slot trading
negotiations.
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