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OST-00-8112

America West Airlines, Inc.

For the last eight years America West has operated three daily round trips between CMH and DCA using exemption slots granted by the FAA in Exemption No. 5133 and a slot obtained from American Airlines as part of a slot trade which provided slots to American at O'Hare. This combination of slots enabled America West to provide the only competitive non-stop service between DCA and Columbus. In addition to servicing the local market, these flights have been between DCA and Columbus. In addition to servicing the local market, these flights have been important to supporting America West's hub at CMH and providing transcontinental passengers with low fare flights through CMH between the two coasts. The DCA-CMH market is substantial, and passengers significantly benefit from America West's competitive service and fares. America West has increased its market share in this market to 38 percent while US Airways carries 58% of the passengers. Currently, America West's average fare is $102.15, almost twenty percent below the $125.03 average fare of US Airways. Based on DOT O&D Survey statistics as of September 25, 2000, 198 passengers per day each way ("PDEWs") currently fly between DCA and CMH, and the number of passengers in the market grew by 37.5% between 1991, the year before America West entered the market, and 1999.

Earlier this year American advised America West that it would not be renewing the O'Hare slot trade, but America West understood that American would continue to lease America West a slot at DCA. In September, American notified America West that it would not be able to lease a slot to America West. Since then America West has diligently sought an alternative slot so it could maintain its full schedule of service in this market. Last week America West and American were able to enter into a slot trade at DCA under which America West obtained an 0700 slot (no. 1425) from American, However, in order for America West to use this slot for the Columbus service, it needs to slide the slot to 1000. By granting this request, the Department will enable America West to maintain this important competitive service in the DCA - CMH market. Since the current slot arrangement with American expires on October 28, 2000, America West requests that this slide be made effective on October 29, 2000. America West seeks emergency relief since it only was able to definitively work out this arrangement with American within the last week.

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532

America West Airlines, Inc.

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532

It appears from the Application (subject to the verification requested below) that America West has complied with the conditions of 49 U.S.C. §41714 (d) for moving a slot from one hour to another.  Therefore, the Airports Authority has no objection to the Application and the grant of the exemption. The Airports Authority notes that the exemption is not to result in an overall increase in slots at National Airport.  Indeed, one of the statutory conditions is that the exemption will not result in an increase in the total number of slots at National between 7:00 a.m. and 9:59 p.m. (49 U.S.C. §41714 (d)(B)).  Therefore, the 0700 slot moved by America West to the 1000 hour is no longer available to be allocated for use in the 0700 hour.  There must be one less slot in the 0700 hour as a result. We note, also, that the statute authorizing the exemption limits the increase in slots in any one hour as a result of these exemptions to not more than two.  49 U.S.C. §41714 (d)(C). This is cumulative of all exemptions granted for moving slots.  The Department is requested to verify that there have not been two slots added to the 1000 hour pursuant to 49 U.S.C. §41714 (d).

Counsel:  MWAA, Edward Faggen

America West Airlines, Inc.

By this order the Department is granting the request of America West Airlines, Inc. (America West) to 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.).  On October 16, 2000, America West filed an application for an exemption to slide one existing 0700 hour (7:00 a.m.) Reagan National slot to the 1000 hour (10:00 a.m.) in order to permit it to continue to offer its full service offering of three roundtrips per day in the Columbus, OH-Reagan National market. America West states that previously it has been able to provide this level of service based on a slot trade arrangement with American Airlines, but that in September, American had notified America West that it would no longer be leasing the requisite DCA slot to America West. Since then, American and America West have reached an alternative arrangement in which American would lease a 0700 slot to America West. However, to support continuation of its three daily round trip Columbus service, America West states that it requires a 1000 hour slot and thus has filed its application. America West states that since its current slot agreement with American expires on October 28, 2000, it requests that the slot slide should be made effective on October 29, 2000

By:  Francisco Sanchez

America West Airlines, Inc.

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532

America West Airlines, Inc.

America West Airlines, Inc. respectfully requests an amendment to the exemption from the requirements of 14 C.F.R. Part 93, Subparts K and S approved by Order 2000-10-32, October 27, 2000, which permitted

America West to slide a 0700 slot at Ronald Reagan Washington National Airport ("DCA") to 1000 to maintain its three daily roundtrips to Columbus, Ohio ("CMH"). By this Application America West requests that the 1000 slide be replaced by a slide to 1100 in accordance with 49 U.S.C. § 41714(d). America West understands from the FAA that one slide is available at 1100.

On October 27, 2000, Order 2000-10-32 approved America West's request to slide an 0700 slot (Slot No. 1425) obtained on a temporary basis from American Airlines to the 1000 hour. The Order restricted the use of the slot for service between DCA and CMH, but did not impose any termination date on the slide. The Order found that America West satisfied all the criteria established by the Department to support approval of the slot slide. Specifically the Department found that America West operates only nine slots at Reagan National and that the 0700 slot is not commercially viable for the carrier's service to Columbus. The Department also found the need of America West to maintain competitive service to its hub at Columbus with connections to West Coast points met the exceptional circumstance requirement of §41714(d).

As discussed in America West's original application in this Docket, filed October 16, 2000, the DCA-CMH market is substantial, and passengers significantly benefit from America West's competitive service and fares. Indeed, America West's stimulation of this market has resulted in American recently initiating its own service between Reagan National and Columbus by American Eagle. Without the ability to continue the three round trips now offered by America West, fares in this market would likely go up since the market would be dominated by American and US Airways.

Counsel:  Baker Hostetler, Joanne Young, 202.861.1532

America West Airlines, Inc.

By:  Susan McDermott 

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