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OST-2000-7181

DCA Letters in Support

Establishment of Slot Exemptions Proceedings 

By:  Bradley Mims

The Wendall H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Notice from April 14th

By:  Bradley Mims

Frontier Airlines, Inc.

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500

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

National Airlines, Inc. "National" , a new entrant air carrier, hereby applied for six of the beyond-perimeter slot exemptions to be made available for service at Ronald Reagan Washington National Airport "DCA" under Section 231 of the recently enacted Wendell H. Ford Aviation Investment and Reform Act for the 21st Century "AIR-21."  National proposes to used the beyond-perimeter slot exemptions to perform three daily nonstop roundtrip flights between DCA and Las Vegas' McCarran International Airport "LAS". 

Counsel:  Hogan Hartson, Ronald Brower, 202.637.6546, rpbrower@hhlaw.com 

Sample Frontier Airlines, Inc.; The Wendall H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

By:  Frontier Airlines, Tom Lyons

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532 

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193

Counsel:  Glenn Wicks, 202.457.7790

Counsel:  Wilmer Cutler, Bruce Rabinovitz, 202.663.6960, brabinovitz@wilmer.com

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6600, msinick@ssd.com 

Counsel:  Pro Air, Bradley Toney, 206.623.2000

Counsel:  Wilmer Cutler, Bruce Rabinovitz, 202.663.6000

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel;  Alaska, Keith Loveless, Horizon, Arthur Thomas

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532 

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@amrcorp.com

Counsel: Squire Sanders, Marshall Sinick, 202.626.6600, msinick@ssd.com 

Counsel:  Thelen Reid, Richard Leidl, 202.508.4000

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

Counsel: Ungaretti Harris, Eward Faberman, 202.639.7500

Counsel:  Las Vegas and Global Aviation Associates, Jon Ash, 202-457-0212, jfa@ga2online.com

Counsel:  Hogan Hartson, George Carneal, 202.637.6546, gucarneal@hhlaw.com 

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193, megan.poldy@nwa.com 

Counsel:  GKMG Consulting, Morris Garfinkle, 703.312.0350

Counsel:  Preston Gates, Jonathan Blank, 202.662.8450

Counsel:  Steptoe Johnson, Richard Taylor, 202.429.6459

Counsel:  Glenn Wicks, 202.457.7790

Counsel:  Shaw Pittman, Nathaniel Breed, 202.663.8078

Counsel:  Wilmer Cutler, Bruce Rabinovitz, 202.663.6960, brabinovitz@wilmer.com 

Counsel:  MWAA, Edward Faggen

By:  Governor Thomas Knowles, 907.465.3500

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

Only the most compelling circumstances would cause National to request the Department to reopen the record subsequent to the pleading deadline. Regrettably, however, if not stricken, the misstatements submitted by America West could mislead the decisionmakers and unfairly prejudice National’s prospects for an award of beyond-perimeter slot exemptions at Ronald Reagan Washington National Airport ("DCA").  National and America West are competing applicants for DCA-Las Vegas slot exemptions in this proceeding. By misstating the comparative qualifications of the two applicants, America West may have hoped to gain an edge in obtaining beyond-perimeter slot exemptions instead of National. Such action does a disservice to the Department’s decisionmakers, to National, and to the other participants in this proceeding, and must not be allowed to stand.

Counsel:  Hogan Hartson, George Carneal, 202.637.6546, gucarneal@hhlaw.com

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel: Shaw Pittman, Nathaniel Breed, 202.663.8078, nathaniel.breed@shawpittman.com

National's filing is frivolous and an inappropriate attempt to distort the objective evidence, reargue the purported benefits of its own application and misrepresent America West's timely filed comments of May 22, 2000. America West stands behind the accuracy of its statements that average fares paid by travelers on America West between JFK and Las Vegas, San Francisco and Los Angeles are lower than those paid on National. America West also submits it is not in the public interest to award limited available exemption slots to a new carrier that has yet to show it can operate profitably. Since America West has made no misstatements about National, the motion should be denied.

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Wilmer Cutler, Bruce Rabinovitz, 202.663.6960, brabinovitz@wilmer.com 

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel: Shaw Pittman, Nathaniel Breed, 202.663.8078, nathaniel.breed@shawpittman.com

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Ungaretti Harris, Edward Faberman, 202.639.7500

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel: Ungaretti Harris, Edward Faberman, 202.639.7500

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel: Ungaretti Harris, Edward Faberman, 202.639.7500

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

Counsel:  Glenn Wicks, 202.457.7790

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

By this order the Department partially grants the applications of a number of carriers for slot exemptions at Ronald Reagan Washington National Airport (hereafter "DCA") in order to provide nonstop service between DCA and five cities, as follows: (1) America West Airlines, six slot exemptions in order to provide one daily nonstop round trip between DCA and Las Vegas, NV, and two day nonstop round trips between DCA and Phoenix; (2) Frontier Airlines, two slot exemptions to provide one nonstop round trip a day between DCA and Denver; (3) National Airlines, two slot exemptions to provide one nonstop round trip a day between DCA and Las Vegas, NV; and (4) Trans World Airlines, two slot exemptions to provide one nonstop round trip a day between DCA and Los Angeles, conditioned upon its execution, within 60 days, of a signed agreement with Chatauqua Airlines to provide it on-line feeder service at Los Angeles.

By:  Bradley Mims

America West Airlines, Inc.

As described in America West's application, these departure and arrival times are critical to meeting America West's connecting banks at Phoenix and Las Vegas and thereby maximizing potential competition and consumer benefits for travelers in the 42 beyond markets that will receive new one stop service.

Counsel:  America West and Baker Hostetler, Joanne Young, 202-861-1532

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

TWA hereby proposes the following schedule (arrivals and departures effective September 10, 2000 for flights between Los Angeles and DCA:

DCA ARRIVAL/DEPARTURE SLOTS

In view of the three time zone difference between Los Angeles and Washington DC, it is imperative that TWA receive these times in order to generate a commercially viable and competitive schedule in the DCA-LAX market.

Counsel:  Glenn Wicks, 202.457.7790

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

Counsel: Ungaretti Harris, Edward Faberman, 202.639.7500

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

Counsel:  Hogan Harston, Ronald Brower, 202.637.6546, rpbrower@hhlaw.com 

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

In compliance with the requirement of Ordering Paragraph 5, TWA confirms that it has entered into a definitive agreement with American Eagle Airlines ("American Eagle") to provide on line feeder service to TWA at Los Angeles. Evidence of the executed definitive agreement is attached hereto in the form of the signature pages as well as the cover page of the agreement. This agreement is effective August 15, 2000, and will be implemented as early as September 10, 2000, but not later than October 1, 2000. The agreement provides for a minimum service level commitment by American Eagle of at least three round trip flights per day at each feeder airport with a minimum of at least one roundtrip that conveniently connects to each TWA arrival at Los Angeles -- including TWA's DCA-LAX nonstop flight. Saab 340 aircraft will be used to provide this Trans World Connection Service.

American Eagle will provide TWA with service pursuant to TWA's Trans World Connection Service Agreement and will provide on line connections in the following city pairs:

Los Angeles to:

• Bakersfield
• Fresno
• Monterrey
• Palm Springs
• San Diego
• San Luis Obispo
• Santa Barbara

In addition, TWA has arranged its schedule to permit for a convenient DCA Kona, Hawaii connection. Finally, TWA has recently announced that Los Angeles will be its focus city for the year 2000, with expanded transcontinental service from New York, JFK airport.  TWA reiterates its interest in implementing its original service proposal of three daily nonstop roundtrip flights between DCA and LAX. Hence, to the extent that other services are not timely implemented, TWA proposes reallocation of such available slots to it for immediate expanded DCA-LAX service.

Counsel:  TWA, Glenn Wicks, 202.457.7790

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

On July 5, 2000, the Department issued, Orders 2000-7-1 and 1000-7-2,- which granted a total of 24 slot exemptions at Ronald Reagan Washington National Airport (DCA), to the above listed air carriers. The Department also directed that no later than July 14 these air carriers should file proposed flight schedules and the effective date for operations authorized by the orders in the appropriate docket. The Department also noted that the Federal Aviation Administration (FAA) would assign slot exemption numbers, effective dates, and operating times consistent with statutory limitations, but that the Department would make the final determination of slot time assignments. The affected air carriers have now filed their proposed flight schedules, and in several instances we have noted scheduling conflicts where several carriers have requested slot exemptions for the same one-hour period. Since 49 U.S.C. § 41718(c)(2) does not allow us to assign more than two slot exemptions per one hour period, we are unable to accommodate all of the carrier slot exemption time requests. By this notice we are assigning slot times as indicated by Orders 2000-7-1 and 2000-7-2, as summarized in the attachment. In making these determinations, we were required to balance the FAA's operational needs with those of the air carriers, while complying with the statutory requirements of AIR-21. The attachment to this notice indicates only the hourly period during which the slot exemption must be operated, not the exact times. Additional consultation on exact times, frequency, and effective dates will be required between the air carriers and the FAA's Slot Administration Office.

By:  Bradley Mims

America West Airlines, Inc.

Counsel:  Baker Hostetler, Joanne Young, 202.861.1500

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

In the Notice that the Department recently issued concerning slot exemption times for service at Reagan National Airport, If the Department authorized National Airlines, Inc. to change its schedule of operations at DCA by moving one of its morning operations to an evening time slot, effective January 1, 2001. National originally sought permission to make this schedule change effective January I because it did not expect to be able to acquire an additional aircraft in time to start its most desired schedule at DCA within the 60-day period that the Department established for carriers to begin using the slot times awarded to them.

National now anticipates being able to put a new aircraft into service earlier. Accordingly, National requests authorization to make the same change in its schedule effective December 1, 2000, rather than effective January 1, 2001. The Department's approval of this request will enable National subject, of course, to consultation with the Federal Aviation Administration's Slot Administration Office on the exact time of National's flight operations) to implement the following schedule of operations at DCA.

Counsel:  Hogan Hartson, George Carneal, 202.637.5600, gucarneal@hhlaw.com 

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

By:  Dennis DeVany 

By:  Dennis DeVany 

By:  Dennis DeVany 

By:  Dennis DeVany 

Delta Air Lines, Inc.

On January 23, 2001, in response to the announced plan of American Airlines, Inc. to acquire substantially all of the assets of Trans World Airlines, Inc. , the Department issued a letter stating unequivocally that TWA's beyond-perimeter DCA slot exemptions could not be transferred as part of any such asset sale: ... the statute does not allow the Department to consider these exemptions transferable or conveyable to American. Were Trans World to cease to utilize these slot exemptions for the approved service to Los Angeles, the statute requires that they be immediately recalled by the Department.

While there are hundreds of within-perimeter slots being operated at DCA, there are only twelve slot exemptions available for outside perimeter service -- enough for only six daily roundtrip flights. These exemptions are therefore very limited and very valuable, and the Department should act to ensure that these beyond-perimeter slot exemptions are continually employed for their highest and best use.

Delta proposes to operate one daily nonstop roundtrip flight between DCA and SLC with Boeing 757 aircraft with 183 seats configured for two-class service.

Counsel:  Delta and Shaw Pittman, Robert Cohn, 202-663-8060

Continental Airlines, Inc.

Continental applies for the two beyond-perimeter slot exemptions to provide one nonstop roundtrip a day between Ronald Reagan Washington National Airport and Los Angeles International Airport that were granted toTWA by Order 2000-7-1. TWA’s two Reagan National slot exemptions will revert to the Department when TWA’s assets are acquired by American and other parties orthe current independent TWA otherwise discontinues the service. Since only Continental’s proposed service can provide the same competitive benefits thatcompelled selection of TWA six months ago, the Department should grant Continental’s application immediately and make the slot exemptions effective assoon as TWA discontinues using them.

Counsel:  Crowell Moring, Bruce Keiner, 202.624.2500, rbkeiner@cromor.com

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

This is in regard to both the recent Chapter I I filing by Trans World Airlines and the proposal whereby American Airlines would acquire substantially all of Trans World's assets. We hope that the information below will facilitate your planning for this proposed transaction.

As you may remember, by Order 2000-7-1, issued July 5, 2000, the Department awarded two slot exemptions at Ronald Reagan Washington National Airport (DCA) to Trans World to provide one round trip a day between DCA and Los Angeles. The award was made to Trans World over competing applications from various other carriers, in accordance with Congressionally-mandated criteria including necessary findings of domestic network benefits and an increase in competition by new entrant air carriers or in multiple markets. See 49 U.S.C. 41718(a). The order also states at page 25, "Under the provisions of 49 U.S.C. § 417140) these carriers may not sell, trade, transfer, or convey the operating authorities granted by the subject exemptions unless otherwise authorized herein."

As you can see, the statute does not allow the Department to consider these exemptions transferable or conveyable to American. Were Trans World to cease to utilize these slot exemptions for the approved service to Los Angeles, the statute requires that they be immediately recalled by the Department. Of course, in such an event, American Airlines would be eligible to apply for these slot exemptions in the same manner that it requested consideration in Docket 2000-7181.

Counsel:  Susan McDermott

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions) / Delta Air Lines

In particular, Delta's establishment of daily nonstop service between Reagan National and Delta's substantial operating hub at Salt Lake City will bring about convenient and competitive nonstop to nonstop on-line connecting service between the Nation's Capital and over 33 cities in the western United States, including 18 small and medium-sized communities in the seven intermountain western states which receive nonstop service by Delta to and from its major Salt Lake City hub. In addition, Delta's establishment of nonstop service with its state-of-the-art 183-seat Boeing B-757 aircraft between Salt Lake City and Reagan National will substantially improve the convenience of service for thousands of annual local O&D passengers between Washington, D.C. and one of the largest and fastest growing cities and regions in the western United States.

Counsel:  Shaw Pitman, Nathaniel Breed, 202.663.8078

Continental Airlines, Inc.

Counsel:  Shaw Pitman, Alexander Van der Bellen, 202.663.8060

Beyond Perimeter Slots

Just six months ago, the Department rejected Delta’s application for a beyond-perimeter slot exemption to operate nonstop service between Ronald Reagan Washington National Airport and Salt Lake City in favor of Washington Reagan-Los Angeles nonstop service operated by an airline with a far smaller presence at Washington Reagan. Now, Delta asks the Department to terminate nonstop Washington Reagan-Los Angeles service and authorize the very nonstop Salt Lake City service the Department just rejected. Rather than terminating nonstop Washington Reagan-Los Angeles service and the benefits it has brought to both Washington and Southern California, the Department should grant Continental’s application to provide nonstop Washington Reagan-Los Angeles service. Since Continental’s proposal to replace TWA’s service when TWA terminates service will provide even more public benefits than the TWA service which was selected over Delta’s Salt Lake City service before, the Department should deny Delta’s application.

Counsel:  Continental and Crowell Moring, Bruce Keiner, 202-624-2500

Northwest joins Delta in asking the Department to institute an expedited proceeding to determine the best allocation of TWA's slot exemptions should the Department recall them. Northwest urges the Department to issue a comprehensive instituting notice or order, at the appropriate time, simultaneously setting procedural dates fbr applications and responsive pleadings, and detailing any evidence the Department believes it will require in order to make its allocation decision. Requiring carriers to file multiple rounds of largely repetitive pleadings only imposes unnecessary burden on the Department, the carrier applicants and the communities involved.

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193, megan.rosia@nwa.com

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions); 

Northwest urges the Department to institute an expedited proceeding to determine the best allocation of TWA’s slot exemptions should the Department recall them. At the appropriate time, the Department should issue a comprehensive instituting notice or order simultaneously setting procedural dates for applications and responsive pleadings, and detailing any evidence the Department believes it will require in order to make its allocation decision. Requiring carriers to file multiple rounds of largely repetitive pleadings only imposes unnecessary burden on the Department, the carrier applicants and the communities involved.

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193, megan.rosia@nwa.com

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

American proposes to operate daily nonstop roundtrip service between Los Angeles and Ronald Reagan Washington National Airport, using B757 Stage 3 aircraft with 176 seats. The B7S7 is the largest capacity aircraft authorized for operations into DCA. Accordingly, American's aircraft selection will ensure that maximum public benefits are achieved from the beyond-perimeter slot opportunities provided by AIR 21. While American would obviously prefer to operate more than one daily roundtrip, only two exemption slots will be made available when TWA ceases to utilize them.

Eastbound, American's proposed flight will depart Los Angeles at 8:30 a.m., with an afternoon arrival at DCA at 4:20 p.m. Westbound, American will offer a departure from DCA at 5:30 p.m., arriving at Los Angeles at 8:15 p.m. These flights will provide convenient arrival and departure times for business and leisure passengers, and maximize connecting opportunities at Los Angeles.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Continental Airlines, Inc. and Delta Air Lines, Inc.

American opposes the applications by Continental and Delta. With only a single pair of beyond-perimeter exemption slots to be awarded, and competing applications already on file by three carriers, the Department should institute a carrier-selection proceeding, with a procedural schedule for additional applications, answers, and replies, and should decide the matter using show-cause procedures.

American and American Eagle will provide competitive one-stop service to DCA via Los Angeles to a number of other cities in the west, including Fresno, San Francisco, San Jose, Palm Springs, San Diego, Reno, Las Vegas, Honolulu, and Kahului. American will also offer new one-stop access between DCA and international cities served by American's codeshare partners at the Los Angeles gateway, including Beijing, Seoul, Nagoya, Taipei, Fiji, Sydney, Melbourne, and Auckland.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

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

Although Frontier is positive about this service, the costs of operating one roundtrip per day at DCA are extremely high. In addition, with no other service available at DCA, Frontier's one-flight per day is not as attractive to business and other travelers who seek multiple options when traveling to a market as important as Washington, D.C. When a carrier only operates one flight in a market, customers are impacted if weather, congestion or airport problems cause delays or cancellations. With a second flight, customers have a critical option if any problems arise. Moreover, a second flight allows Frontier to best serve the Washington, D.C. to Denver market, through passengers originating at DCA, and travelers seeking multiple scheduling options. A second flight would also permit Frontier to spread costs for items such as staffing, advertising, and promotions.

Counsel: Ungaretti Harris, Edward Faberman, 202.639.7500

Delta Air Lines

Counsel:  Spokane International Airport, John Morrison

Counsel:  Salt Lake City Department of Airports, Mary Kay Griffin

Counsel:  House of Representatives State of Utah, Representative David Jones, Minority Leader

Counsel:  The Economic Development Corporation of Utah, Louise Callister

Counsel:  Yellowstone Regional Airport, David Ulane

Counsel:  Port of Seattle, Jack Block

Counsel:  Port of Seattle, Jack Block

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Northwest urges the Department to institute an expedited proceeding to determine the best allocation of TWA’s slot exemptions should the Department recall them. At the appropriate time, the Department should issue a comprehensive instituting notice or order simultaneously setting procedural dates for applications and responsive pleadings, and detailing any evidence the Department believes it will require in order to make its allocation decision. Requiring carriers to file multiple rounds of largely repetitive pleadings only imposes unnecessary burden on the Department, the carrier applicants and the communities involved.

Counsel:  Northwest, Megan Rae Rosia, 202.842.3193, megan.rosia@nwa.com 

Counsel:  Great Falls International Airport Authority, Cynthia Schultz

Counsel:  Washington Public Ports Association 

Counsel:  Fairbanks International Airport, D.C. Ruff

Counsel:  Mayor SLC City, Ross Answerson

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Shaw Pittman, Nathaniel Breed, 202.663.8078

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions) 

In anticipation of the institution of a reallocation proceeding, several carriers and communities, including Frontier for Denver, have expressed interest in the slots. Alaska wants to make clear that it intends to vigorously prosecute an application for these beyond- perimeter slots so that Alaska may offer passengers throughout the State of Alaska and the Pacific Northwest the first Seattle-DCA nonstop service. Accordingly, Alaska would encourage the Department to initiate promptly a slot reallocation proceeding as soon as the TWA bankruptcy process has reached an appropriate juncture.

Counsel:  Squire Sanders, Marshall Sinick, 202.626.6600, msinick@ssd.com 

Both Continental and American have demonstrated that awarding authority to continue nonstop Washington Reagan-Los Angeles service would provide compelling public benefits. Los Angeles is by far the largest city outside the perimeter for Washington Reagan, and far more passengers travel the Washington-Los Angeles route than any other beyond-perimeter route. Even Delta, which has applied for a Washington Reagan-Salt Lake City perimeter exemption, recognized the importance of Los Angeles when it said that if the perimeter rule were lifted at LaGuardia it would provide "at least three daily nonstop flights to Los Angeles" which would "produce service and competitive benefits that are equal to or greater than America West’s proposal" for Phoenix and Las Vegas service because "Los Angeles produces more long-haul O&D traffic to New York than any other city located outside the perimeter." The same can be said for Los Angeles-Washington. The decision to continue nonstop Washington Reagan-Los Angeles service should be easy. The decision to select Continental to replace TWA should be equally easy.

Counsel:  Crowell Moring, Bruce Keiner, 202.624.2615

Los Angeles is poorly situated to serve as a connecting hub for all but a handful of West Coast cities. Moreover, American already operates one of the largest within-perimeter hubs serving the western United States at Dallas/Ft. Worth. American's DFW hub (like the Houston hub of Continental, the other DCA-Los Angeles applicant), gives American extensive nonstop- to-nonstop coverage of the western United States, including most of the connecting cities American claims it will serve in its application. It is difficult to see how enabling American to offer duplicate (and in many cases more circuitous) connections to West Coast cities such as Fresno, Palm Springs, and Las Vegas -- via Los Angeles instead of Dallas -- would increase "network benefits" or "competition in multiple markets" to any measurable degree.

By contrast, Delta's Salt Lake City proposal excels in terms of the statutory criteria under AIR-21. Unlike Los Angeles, Salt Lake City is effectively positioned to provide enhanced network benefits and improved competition for vast areas of the western United States -- particularly the critically underserved regions of the intermountain west. By virtue of the perimeter rule, Delta is effectively cut off from its primary western hub, and cannot offer nonstop-to-nonstop DCA connections for any of the numerous western communities that Delta serves exclusively from Salt Lake City. Travelers wishing to use Delta must double or triple connect to reach DCA, resulting in a significant degradation of the network and multi-market competitive benefits Delta would otherwise provide on DCA-western U.S. routes.

In sum, whatever unique circumstances may have led the Department to award DCA-Los Angeles slots to TWA do not apply to American or any other would-be-replacement" carrier at Los Angeles. Under the clear and unambiguous criteria set forth by Congress in AIR-21, Delta's Salt Lake City hub should be the Department's first choice for an award.

Counsel:  Shaw Pitman, Robert Cohn, 202.663.8078

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

American opposes the application by Frontier, which already holds and operates a pair of DCA beyond-perimeter slots to serve Denver, awarded by Order 2000-7-1. With only a single pair of beyond-perimeter exemption slots becoming available after TWA ceases service, and competing applications or expressions of interest already on file by six carriers, the Department should institute a carrier-selection proceeding, with a procedural schedule for additional applications, answers, and replies, and should decide the matter using expedited show-cause procedures.

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Counsel:  Crowell Moring, Bruce Keiner, 202.624.2615, rbkeiner@cromor.com

Of the applications received to date, Frontier's is the only one that would represent a reduction in the number of beyond-perimeter cities receiving nonstop DCA service. The Department needs to focus on expanding, and not contracting, the number of cities that receive nonstop DCA service and improved network benefits, using the rare AIR-21 beyond-perimeter exemption opportunities. Frontier should not be awarded additional beyond-perimeter slot exemptions for Denver, while Salt Lake City, and the numerous communities in the intermountain west that depend on Salt Lake as their primary transportation hub, are left without effective access to the heart of the Nation's capital.

In contrast to the extensive coverage of the underserved intermountain west, and the many small and medium communities that Delta serves from Salt Lake City, Frontier's Denver hub serves only the largest western cities, such as Phoenix, Las Vegas and San Francisco - all of which have multiple nonstop-tononstop competitive service options to DCA. Authorizing nonstop service between DCA and Salt Lake City would create eighteen first-ever or first-competitive nonstop-to-nonstop connections for small and medium sized western communities. Authorizing a second daily DCA-Denver flight by Frontier would create zero first nonstop or first competitive services.

Frontier's vague and speculative assertions about its "discussions" concerning "its potential codeshare opportunity" with a commuter carrier should be given no decisional weight in any carrier selection proceeding. Moreover, assuming arguendo that Frontier actually did conclude such an agreement, Frontier is free to provide codeshare services to DCA utilizing its existing beyond-perimeter exemption slots.

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.663.8060

Because United's application and those of American, Continental, Delta and Frontier are mutually exclusive, the Department must institute a comparative selection proceeding. United would urge the Department to institute a streamlined proceeding as soon as possible to ensure that there is no gap in service once TWA ceases operating. Even a temporary cessation could cause substantial harm to travelers who have come to rely on the many benefits provided by this first-time, convenient nonstop access to DCA from Los Angeles, formerly the largest metropolitan area in the country without nonstop service to DCA.

Counsel:   Wilmer Cutler, Bruce Rabinovitz, 202.663.6000, brabinovitz@wilmer.com 

As a result of TWA's recent bankruptcy filing and the pending American/TWA asset acquisition, it appears that TWA will cease utilizing its two beyond-perimeter slot exemptions and that the exemptions will thereafter revert to the Department. Under these circumstances, it is imperative that another carrier be selected to step in immediately upon TWA's cessation of service to ensure that the Los Angeles metropolitan area does not lose its vital non-stop DCA link. Moreover, the selection of United for these two beyond-perimeter slot exemptions will guarantee that even more communities throughout California and the Western United States enjoy their first single-plane service or new competitive service to DCA,I maximizing the domestic network benefits these slot exemptions provide.

Counsel:   Wilmer Cutler, Bruce Rabinovitz, 202.663.6000, brabinovitz@wilmer.com

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions) / Delta Air Lines

Counsel:  Shaw Pitman, Nathaniel Breed, 202.663.8078, nathaniel.breed@shawpittman.com

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

American Airlines, Inc. hereby answers in opposition to the application submitted on February 26, 2001 by United Air Lines, Inc. for two "beyond perimeter" slots to serve nonstop between Ronald Reagan Washington National Airport (DCA) and Los Angeles (LAX).

On February 12, 2001, American submitted an application in this docket for two beyond-perimeter DCA slots (one arrival and one departure) in order to operate daily roundtrip nonstop service to LAX, using 176-seat B757 aircraft. The authority American is seeking should take effect when Trans World Airlines, Inc. -which currently provides DCA-LAX nonstop service under Order 2000-7-1, July 1, 2000 -- ceases to utilize such slots as a result of TWA's recent bankruptcy filing and the pending American/TWA asset acquisition agreement.

American opposes the application by United, which is the largest carrier at LAX. With only a single pair of beyondperimeter exemption slots becoming available after TWA ceases service, and competing applications or expressions of interest already on file by seven carriers, the Department should institute a carrier-selection proceeding, with a procedural schedule for additional applications, answers, and replies, and should decide the matter using expedited show-cause procedures.

In addition to American and United, applications were submitted in this docket by Delta Air Lines, Inc. on January 29, 2001 (DCA-SLC), by Continental Airlines, Inc. on January 30, 2001 (DCA-LAX), and by Frontier Airlines, Inc. on February 26, 2001. American filed a consolidated answer to Delta and Continental on February 12, 2001, and an answer to Frontier on February 26, 2001. Moreover, Alaska Airlines, Inc. has expressed interest in slots for DCA-SEA service (Alaska Answer to Frontier, February 22, 2001), and Northwest Airlines, Inc. has expressed interest in pursuing an application (Northwest Answer to Continental, February 8, 2001).

Counsel:  American, Carl Nelson, 202.496.5647, carl_nelson@aa.com

Continental, American and United have demonstrated that awarding authority to continue nonstop Washington Reagan-Los Angeles service would provide compelling public benefits. Los Angeles is by far the largest U.S. city outside the perimeter for Washington Reagan, far more passengers travel the Washington-Los Angeles route than any other beyond-perimeter route, and selection of any of the other routes for which competing applications have been submitted would, of necessity, eliminate nonstop Los Angeles service at Washington Reagan and, in some cases, reduce the number of beyond-perimeter cities receiving such service by one. Even Delta, a competing applicant seeking to operate nonstop Washington Reagan-Salt Lake City service, has recognized that Los Angeles service provides important public benefits because of the large volumes of traffic moving between perimeter-constrained airports in the East and beyond-perimeter airports. The Department’s recent decision selecting the Washington Reagan-Los Angeles route for nonstop service should be reconfirmed. So should its decision selecting a carrier with a relatively small presence at Washington and on the Washington-Los Angeles route over the primary incumbents on the route.

Unlike United, Continental has a small presence at Washington. United controls nearly 70% of the available seat miles at Washington Dulles, 62.7% of the Washington Dulles-Los Angeles traffic and 38.5% of the total Washington-Los Angeles traffic. Enabling Continental to provide daily nonstop service between Washington Reagan and Los Angeles will expand Continental’s smaller presence, enhance competition for Washington-Los Angeles traffic and provide on-line connecting benefits between Los Angeles and more California cities than TWA offers. Granting Continental slot exemptions to institute nonstop service between Washington Reagan and Los Angeles would enhance Continental’s ability to compete with the largest carriers at Washington (American, United, Delta and US Airways) and with the largest carriers at Los Angeles (American and United).

American, Delta, United and US Airways together control approximately 72% of the slots at Washington Reagan today (ATA Slot Statistics Report, January 22, 2001), and American and United together carry 80% of the Washington, D.C.-Los Angeles passengers. (Order 2000-7-1 at 23) If the proposed American/United/US Airways mega-mergers were to occur, which they should not, the dominance of American and United at Washington would become so great that, in addition to awarding Los Angeles perimeter exemptions to Continental, the Department would be required to make significant changes in slot holdings at Washington Reagan and other airports to ensure continuation of at least a modicum of competition for the mega-carriers.

Counsel:  Continental and Crowell Moring, Bruce Keiner, rbkeiner@cromor.com   

United's application, like American's and Continental's, erroneously presumes that the Department should have a bias in favor of Los Angeles over other competing western hub cities. Delta agrees with United that "it is imperative that another carrier be selected to step in immediately upon TWA's cessation of service . . ." (United at 2). However, slot exemptions should not be granted to United for service at Los Angeles, when Delta's Salt Lake City hub, with its much broader catchment area, would produce demonstrably greater "domestic network benefits" and better enhance "competition in multiple markets" in accordance with the prime statutory eligibility criteria established by Congress under Air 21.

As Delta explained in detail in its answer to American's DCA-Los Angeles proposal, there were unique and special considerations which led the Department to favor TWA's Los Angeles proposal. i.e., TWA's precarious position in the marketplace and the desire to bolster TWA's viability as a continuing competitor. Those considerations do not apply to United or to any of the other current Los Angeles applicants. Moreover, as noted by the Department, "United [and American] now control more than 80 percent of the traffic in the Los Angeles-Washington local market." Order 2000-7-1 at 23.

Counsel:  Shaw Pittman, Alexander Van der Bellen, 202.63.8060

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

Counsel:  Shaw Pitman, Alexander Van der Bellen, 202.663.8060, sascha.vanderbellen@shawpittman.com 

Counsel:  Shaw Pitman, Alexander Van der Bellen, 202.663.8060, sascha.vanderbellen@shawpittman.com

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

By:  Susan McDermott

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Slot Exemptions)

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532 

Reagan Washington National Slot Allocation

Alaska Airlines, Inc.

By this application, Alaska seeks these two (2) slot exemptions to operate a daily DCA--Seattle-Anchorage roundtrip flight. Alaska's proposed DCA operation offers a unique combination of. (i) substantial domestic network benefits including the first nonstop and the first one-stop single-plane service to two major hubs; (ii) service by the only likely applicant that can rightfully claim new entrant status at DCA; and (iii) increased competition from a carrier with a long track record of successfully competing against far larger carriers. The Seattle gateway is the primary focus of Alaska's proposal and, unquestionably, has a far greater need for nonstop service to DCA than the Los Angeles market in which TWA's service has barely been noticed. Moreover, no other applicant will likely propose the first new single-plane service to a second hub city--Anchorage--in addition to nonstop service to its primary hub city--Seattle. Among the gateways for which service is likely to be proposed by the various carriers, Seattle is the largest without nonstop service to DCA, apart from Los Angeles. The fact that one carrier--United--controls more than 80% of the Seattle-Washington area market only makes Seattle's need for new nonstop service to DCA that much more compelling. While price competition is not exactly robust in the Los Angeles-Washington area market, the fares are lower and the market is at least split between American and United.

Counsel:  Alaska and Squire Sanders, Marshall Sinick, 202-626-6780, msinick@ssd.com 

National Airlines, Inc.

National proposes to operate the slot exemptions to provide a second daily nonstop roundtrip frequency between DCA and the carrier's hub at Las Vegas McCarran International Airport (LAS).

As was demonstrated in National's original slot exemption application, a growing demand for airline seats exists between DCA and LAS, the top leisure destination in the world. To supplement the data presented in that pleading, National notes that during the period September 1999 to September 2000, McCarran International Airport in Las Vegas was the fourth largest domestic O&D market, after Los Angeles, Atlanta and Chicago O'Hare. Of the 15 largest hotels in the world, 14 are located in Las Vegas. 4/ Between 1993 and 2000, hotel occupancy rates in Las Vegas averaged over 90% year-round, as compared to the national average over that same period of 67%. Taking into account all the hotel and motel rooms in the Las Vegas area which are under construction and/or proposed for development, by the end of 2003, the total Las Vegas room inventory will be 175,972, an increase of 42% from current levels. This sizable hotel expansion win clearly require additional air service to meet heightened customer demand.

Counsel:  Hogan Hartson, George Carneal, 202-637-6546, gucarneal@hhlaw.com

United Air Lines, Inc.

On April 6, 2001, the Department issued a Notice, inter alia, inviting carriers that have filed pending applications for the two available exemption slots to "update or supplement their applications." Pursuant to that Notice, United submits the following set of exhibits in support of its February 26, 2001 application. For ease of reference, attached is a complete set of United's exhibits, including the exhibits that it submitted with its February 26, 2001 application, which have been revised to include additional information. The attached set of exhibits is intended to replace the exhibits filed in conjunction with United's February 26, 2001 application. A copy of this letter and attachments has been sent to the persons named on the attached service list.

Counsel:  United and Wilmer Cutler, Bruce Rabinovitz, 202-663-6000

Special Rules for Ronald Reagan Washington National Airport (Beyond-Perimeter Exemptions)

By:  Ungaretti Harris, Edward Faberman, 202.639.7501

The Wendell H. Ford Aviation Investment and Reform Act for the 21st Century / Applications of Delta Air lines, Inc. and Alaska Airlines, Inc. and American Airlines, Inc. and America West Airlines, Inc., and Continental Airlines, Inc. and Frontier Airlines, Inc. and National Airlines, Inc. a