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OST-00-7189

Midwest Express Airlines, Inc.

Counsel;  Silverberg Goldman, Robert Silverberg, 202.944.3300

Midwest Express Airlines, Inc.

ACAA believes Midwest Express, all small incumbents and new entrants should be able to fully compete at National Airport and at all airports. However, ACAA opposes Department actions that continue to create a special status for Midwest Express. Midwest Express, which has been at National Airport for approximately 15 years, originally obtained slots in the last lottery held by the FAA in 1986. Although a "limited" incumbent 3 that has sold some slots, Midwest Express has been able to increase its slot holdings. By previously allowing Midwest Express to slide two 9:00 p.m. (2100) slots at National Airport to the 2:25 p.m. (1425) period and the 3:00 p.m. (1500) period, the Department has given Midwest Express preferential treatment not available to any other new entrant. Since Midwest Express initiated operations at National Airport (and LaGuardia), no other new entrant has been able to enter into this lucrative and highly protected national market. The Department's Order continues to block any other new entrant from entering National Airport. ACAA believes that this reallocation proposal is consistent with Department statements and policy to promote new entry and facilitate a competitive environment at all airports (especially at National, where new entrants have blocked from operating for fifteen years).

Counsel:  ACA, Edward Faberman, 202.639.7502

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

Midwest Express has been providing service to Kansas City since 1989. Currently, Midwest Express offers Kansas City nonstop and single plane service to six cities, as well as connecting service to 25 other points. The service Midwest Express offers Kansas City is absolutely essential to the economic well being of the community and allows Kansas City to compete with other communities for economic development opportunities. Kansas City is appreciative of the efforts Midwest Express has extended on our behalf as we recognize that Midwest Express has specialized in providing exceptional service from mid-continent cities to major business centers that other carriers do not choose to offer.

With regard to Washington's National Airport, Midwest Express has requested that DOT exercise its existing authority to retime one of the carrier's existing nighttime slots to make it a 7 a.m. slot. The movement of this slot will, along with other self help measures taken by Midwest Express, permit the carrier to not only offer daily nonstop Kansas City-DCA service, but as well, two new daily one stop single plane flights in the market. This flight schedule will increase the amount of single plane service capacity currently in the Kansas City-DCA market by 78 percent.

Counsel:  Kansas City Aviation, Russell Widmar, 816.243.3100

Midwest Express Airlines, Inc.

Vanguard opposes Midwest Express’ slot slide application to the extent that it would impair Vanguard's application for four slot exemptions filed in Docket OST-2000-7159 (now consolidated into Docket OST-2000-7182), and in particular Vanguard's request for an 0700 DCA departure slot exemption. Section 41714(d) and Section 41718 both contain provisions designed to limit the number of slots allocated so as not to increase the number of operations at DCA between the hours of 0700 and 2159 by no more than two operations per hour. Vanguard’s application for an 0700 departure slot exemption would not independently trigger this provision. However, to the extent that Midwest Express’ request for an 0700 slot in conjunction with other requests for slot exemptions at DCA trigger the two operations per hour limitation, then such requests could adversely affect Vanguard's ability to obtain its requested 0700 DCA departure slot exemption. Therefore, Midwest Express’ and Vanguard’s applications would to that extent be mutually exclusive and must be given comparative contemporaneous consideration.

Counsel:  Shaw Pittman, Robert Cohn, 202.663.8060

Midwest Express Airlines, Inc.

Midwest Express Airlines hereby replies in the strongest possible terms to the factually inaccurate and ill-advised answer of the Air Carrier Association of America to the application of Midwest Express for authority to move one of its existing 2100 hour Slots at Ronald Reagan Washington National Airport into the 0700 hour. By so doing, Midwest Express, will be able to offer daily nonstop Kansas City-DCA service with beyond service to San Francisco. in addition, with DOT approval of the application of Midwest Express for four slots with which to offer nonstop Des Moines-DCA service (Docket OST-00-7187) Midwest Express will be able to provide a total of three daily round trip single-plane flights in the Kansas City-DCA market; one nonstop and two one-stop flights

Counsel;  Silverberg Goldman, Robert Silverberg, 202.944.3300, rsilverberg@sgbdc.com 

Midwest Express Airlines, Inc.

Vanguard argues, incorrectly as discussed below, that under §§ 41714(d) and 41718 that no more than two slots may be added to any hour of operation between the hours of 0700 and 2159. Vanguard acknowledges that even under Vanguard’s reading of the law, approval of both the Midwest Express and Vanguard applications would not cause the number of operations within the 0700 hour to increase by more than two. However, Vanguard argues that should another carrier request a 0700 slot, the statutory limitation would be exceeded thereby adversely affecting Vanguard’s chances of being awarded slots. Based on this scenario, Vanguard states that the applications of Midwest Express and Vanguard would have to be given comparative contemporaneous consideration. Vanguard goes on to state that its request is more worthy of consideration than is the Midwest Express application.

Counsel;  Silverberg Goldman, Robert Silverberg, 202.944.3300, rsilverberg@sgbdc.com 

Midwest Express Airlines, Inc.

We noted in Order 94-9-49, and more recently affirmed in Order 99-11-4, /3 that our authority to grant exemptions for slot slides at Reagan National is applicable only in limited circumstances to meet the specific needs of carriers holding a limited number of slots at that airport. Midwest Express currently holds or operates sixteen Reagan National slots and has demonstrated a need for nonstop Washington-Kansas City service that it will implement through the slot slide authorized here. The exemption will enable Midwest Express to operate nonstop service between Reagan National and Kansas City and thus meet the increasing demand in that market. The applicability of our slot exemption authority is appropriate under the exceptional circumstances Midwest Express has presented.

With regard to the issue set forth by Vanguard Airlines, on July 5 the Department issued Order 2000-7-2 granting 12 slot exemptions for within-perimeter service at Reagan National under a separate statute contained in the Wendell H. Ford Aviation Investment Reform Act for the 21st Century (AIR-21). Since that case is now concluded, and Vanguard is no longer an applicant for slot exemptions at Reagan National, its opposition to the request of Midwest Express to slide a slot to an alternative time, to the extent that such a slide would jeopardize Vanguard's application for slot exemptions, is moot.

By:  Bradley Mims

Midwest Express Airlines, Inc.

Order 2000-10-27 is granting the request of Midwest Express Airlines, Inc. (Midwest Express) to temporarily move the operation of a slot at Ronald Reagan Washington National Airport (Reagan National or DCA) from the 0700 hour (7:00 a.m.) to the 1000 hour (10:00 a.m.).

By:  Francisco Sanchez

Midwest Express Airlines, Inc.

By:  Midwest Express, Christopher Svoboda

Midwest Express Airlines, Inc.

By:  Midwest Express, Michael Mooney  

Midwest Express Airlines, Inc.

By Order 2000-7-20, issued July 14, 2000, the Department granted the application of Midwest Express for an exemption to permit it to reassign one DCA slot from the 2100 hour to the 0700 hour in order to permit it to offer daily Kansas City-Washington (DCA) service with Stage 3 MD-80 aircraft. By letter to the Federal Aviation Administration dated September 21, 2000, Midwest Express requested that it be permitted to reassign the 0700 hour slot operation permitted by Order 2000-7-20 from the 0700 hour to the 1000 hour for the period November 1, 2000, through March 31, 2001. By Order 2000-10-27, the Department granted the Midwest Express request.

By a subsequent letter to the Department. dated February 1, 2001, Midwest Express requests that this 1000 slot operation now be permanently reassigned to the 1100 hour. Midwest Express's code-share partner, Air Midwest, serves a number of rural communities with flights into Kansas City that currently arrive in Kansas City after Midwest Express' flight to DCA has already departed. Moving the Kansas City to DCA flight about an hour later will enable these passengers to connect to Midwest Express's nonstop flight to DCA.

We again find that grant of the Midwest Express request meets all five criteria. The only potential criterion that could jeopardize Midwest Express's request is the two operations per hour criterion (number 3, above). The other four criteria are unchanged from when we approved Midwest Express's application by Order 2000-7-20. In this regard we have reviewed our past actions granting exemptions for the reassignment of Reagan National slots pursuant to 49 U.S.C. §41714(d), and we have found that there have been no exemptions granted for the reassignment of slot exemptions during the 1100 hour period.

By:  Susan McDermott

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