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OST-00-7134

Legend Airlines, Inc.

Application of Legend Airlines, Inc. pursuant to 49 U.S.C. Sections 41716 and 41717, applies for 20 LaGuardia slot exemptions and 24 O'Hare slot exemptions so that it may operate 10 roundtrips to LaGuardia and 12 roundtrips to O'Hare.  Given American’s slot advantage and predatory behavior toward Legend, it is essential that the Department provide Legend with the LaGuardia and O’Hare slots necessary for Legend to compete and ultimately, survive. By granting Legend 24 slots at ORD and 20 at LGA, Legend will be able to bring competitive fares and service to Dallas passengers at the nation’s most important business markets.

Counsel:  Ungaretti Harris, Edward Faberman

Legend Airlines, Inc.

America West does not oppose Legend's application for LGA slots, provided America West's earlier-filed application for LGA slots is granted before or at the same time as Legend's request. However, with respect to ORD slots, and especially given the strength of America West's own application for ORD slots, the limited number of new entrant/limited incumbent exemption slots available, the limited competitive benefits likely to be realized from Legend's proposed ORD service, and uncertainty as to Legend's ability to commence its proposed service prior to the statutory narrowing of slot-controlled times at ORD on July 1, 2001, America West opposes Legend's application for eighty-percent (80%) of the available ORD slot exemptions.

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532

Legend Airlines, Inc.

It is unfortunate that a carrier that once championed the rights of new entry and competition now raises objections to a new entrant carrier's application to obtain slots at high density airports, but, sadly, that is what America West Airlines, Inc. has done by filing an Answer opposing new entrant Legend Airlines, Inc.'s application for slots at Chicago O'Hare and LaGuardia. In the not so distant past, America West was an advocate of new entry and promoted public interest factors set forth by the Airline Deregulation Act.

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500

Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

• Legend is a new entrant that has no slots at LaGuardia.
• Legend will operate to Dallas Love Field Airport, providing service to the Dallas Fort Worth Metroplex with connecting service to Los Angeles and Las Vegas.
• All of Legend's aircraft are Stage 3 compliant.
• Legend requests 18 slot exemptions.

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500

Legend Airlines, Inc.

Legend argues that it is inappropriate, and indeed predatory, for American to introduce a competitive product at Dallas Love Field. But the Department's declaratory order on Love Field, Order 98-12-27, December 20, 1998, makes clear that all carriers should have the opportunity to compete at Love Field. Legend may be disappointed that it will not be the only carrier offering premium long-haul service at Love Field, but that is not a basis for giving Legend slots, or for Legend's contention that American is competing unfairly, and it certainly does not establish any predatory conduct.

Legend next asserts, without any supporting evidence, that American is introducing Love Field service without decreasing its service levels at Dallas/Ft. Worth International Airport. Legend neglects the facts. on January 31, 2000, months before Legend commenced operations, American was operating 18 daily roundtrips between Dallas/Ft. Worth and Los Angeles, with an average capacity of 139 seats per flight. As of May 1, 2000, American's frequency between Dallas/Ft. Worth and Los Angeles will be 16 roundtrips, or 556 fewer seats per day. At the same time, American plans to introduce four daily roundtrips between Love Field and Los Angeles, using Fokker 100 aircraft reconfigured to carry 56 passengers per flight, or 448 passengers per day, a net decrease of 108 daily seats. The total number of seats operated by American between the Dallas/Ft. Worth Metroplex and Los Angeles will decrease even further when American's "More Room in Coach" initiative is completed, as described below.

Counsel:  American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com

Legend Airlines, Inc.; Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

Due to American's domination of the Dallas/Fort Worth Metroplex, consumers have had a lack of alternatives and viable competition. As concentration has grown. fares from DFW have increased. Small businesses, which are the economic growth engine of the local and national economies, are the most severely impacted of all as they lack the purchasing volume to negotiate discounted fares with major carriers. Legend will provide much needed fare and service level competition, particularly for those business travelers, by offering business class service at coach fares

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500

Legend Airlines, Inc.; Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532 

Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

Order 2000-5-20 grants exemption from 14 C.F.R. Part 93, Subpart K and S,, to America West Airlines, Inc. (three slot exemption to serve Las Vegas, Nevada), Legend Airlines, Inc. (four slot exemptions, to serve Dallas (Love Field), Texas); Mesa Airlines, Inc.(six slot exemptions, to serve (Columbus, Ohio); National Airlines, Inc. (five slot exemptions, to serve Las Vegas, Nevada); Spirit Airlines, Inc. (six slot exemptions to serve any of the airports in Florida and South Carolina that it proposed, to do allocated based on Spirits assessment of market conditions and system needs) and Sun Country Airlines, Inc. (six slot exemptions, to serve Minneapolis,-St. Paul, Minnesota) to enable these applicants to conduct the operations described in this order at Chicago O'Hare International Airport during the slot -controlled hours of 6:45 a.m. to 9:15 p.m., at times to be determined in consultation between the applicant airlines and the Federal Aviation Administration. the actual times for arriving and departing flights as authorized by that order and to establish the starting date for starting date for implementing the schedules.

By:  Bradley Mims

Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

Counsel:  Morgan Lewis, Dennis Barnes, 202.467.7060, Barn7060@mlb.com

Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

By:  Francisco Sanchez

Wendell H. Ford Aviation Investment and Reform Act for the 21st Century

Counsel:  GKMG Consulting, Anita Mosner, 703.312.1446

Since we must now reallocate the two exemptions that Sun Country has returned, and since no other carrier has expressed an interest in them, we will grant Spirit's request for the two unused slot exemptions consistent with its proposed service outlined in Docket 2000-7180 and with the conditions in Order 2000-5-20.  

By:  Francisco Sanchez

America West Airlines, Inc. and Mesa Airlines, Inc./Legend Airlines, Inc./National Airlines, Inc./Sun Country Airlines, Inc. and Spirit Airways, Inc.

We have decided to grant Spirit's request for four O'Hare slot exemptions for nonstop Myrtle Beach service by reassigning the four O'Hare slot exemptions awarded to Legend by Order 2000-5-20. This action will not preclude Legend from reapplying for these four slot exemptions plus additional slot exemptions that the carrier might require. As we noted in Order 2000-5-20, qualified applicants such as Legend may apply for O'Hare slot exemptions under the provisions of 49 U.S.C. § 41714(i).

Moreover, we note that under the terms of 49 U. S.C § 41717(a), effective July 1, 200 1, the period of slot controlled operations at O'Hare will narrow from the current 6:45 a.m.-9:15 p.m. period to a much more limited 2:45 p.m.-8:14 p.m. period and under the provisions of 49 U.S.C § 41715(a)(1), effective July 1, 2002, the High Density Rule (Subparts K and S of Part 93 of Title 14 Code of Federal Regulations pursuant to 49 U.S. C. § 41714 (c)) will no longer be in effect for O'Hare operations. These statutory provisions will make additional O'Hare access available to Legend.

As noted in Order 2000-5-20, Spirit certified in accordance with 14 C. F. R. 302.4(b), that it met the statutory criteria as a new entrant or I imited incumbent; i.e., that it and any affiliates pursuant to § 41717(k) hold or operate (or held or operated since December 16, 1985) fewer than 20 slots and slot exemptions at Chicago's O'Hare airport. In the instant application Spirit reaffirms that it operates only eight slot exemptions and that it will operate Stage 3 compliant aircraft. Nonetheless, to be consistent, we will require that Spirit certify that its proposed operations comply with the requirements outlined in Order 2000-4-15.

We find that grant of Spirit's request would improve competition in the Myrtle Beach- O'Hare market by providing new, lower-fare offerings and by operating additional service in a market with a strong, leisure-fare component. In addition, given the loss of Vanguard's service in the Midway-Myrtle Beach market, we agree that Spirit's proposal would significantly address a potential service shortfall in the overall Chicago-Myrtle Beach market.

By:  Francisco Sanchez

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