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OST-98-3550

Vanguard Airlines, Inc. (Exemption, High Density Rule, Kansas City/Pittsburgh-New York JFK)

OST-98-3550 | February 23, 1998

Application for an Exemption

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In order to establish profitable operations at JFK, it is critical that Vanguard offer both a sufficient number of flights and convenient flight times. The Kansas City-New York (JFK) and Pittsburgh-New York (JFK) markets are primarily business markets. Vanguard's ability to offer frequent and convenient flights for the value-conscious business traveler is severely limited by the slot regulations. Flights originating in or arriving in Kansas City and Pittsburgh must be timed to connect to or from other Vanguard destinations both for generating traffic and for routing aircraft. Without additional frequencies during slot controlled times, Vanguard is unable to benefit from the synergies necessary to support service to JFK over the long term.

In addition, Vanguard is developing interline relationships with selected international carriers who serve JFK. In order to be successful in this endeavor, Vanguard must offer arriving and departing flights that are well-timed with its interline partner's arriving and departing flights. Discussions between Vanguard and potential interline partners have not been successful because Vanguard is unable to offer flights within the slot controlled time at JFK. Thus, Vanguard is currently foreclosed from any interline or codeshare opportunities and from competing with larger U.S. airlines for international travelers.

• Exhibit A:  Route Map
• Exhibit B:  Nonstop Service Schedule Listing - Kansas City
• Exhibit C:  Nonstop Service Schedule Listing - Kansas City
• Exhibit D:  Nonstop Service Schedule Listing - Pittsburgh
• Exhibit E:  Nonstop Service Schedule Listing - Pittsburgh
• Exhibit F:  Nonstop Service/Flights and Seats Per Day
• Exhibit G:  Nonstop Service/Flights and Seats Per Day
• Exhibit H:  Airport to Airport Top 50 of Selected O/D Markets
• Exhibit I :  Airport to Airport Top 50 of Selected O/D Markets
• Exhibit J:   Competitive Fare Chart
• Exhibit K:  Additional Connecting or Through Service Offered by Flights at JFK During Slotted Hours

Service List

Answers are due by March 10, 1998

Counsel:  Vanguard and Stephen Lachter, 202-862-4321

Vanguard Airlines, Inc. (High Density Rule, New York JFK)

OST-98-3550 | March 10, 1998

Answer of Trans World Airlines

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Vanguard has failed to demonstrate that the public interest requires grant of the exemption and has even failed to meet the new, liberalized qualifications that the Department has established for grant of such applications. TWA, therefore, answers and requests that Vanguard's application be denied.

Counsel:  TWA and Richard Fahy, 202-457-4764, rfahy@ibmnet.com

Vanguard Airlines, Inc. - (High Density Rule, New York JFK)

OST-98-3550 | March 9, 1998 (Received by Editor March 11, 1998)

Answer of Office of the Queens Borough President, City of New York | Cover Letter

Once again, a "discount" airline is seeking an exemption from the "High Density Rule" at a New York City airport, in order to obtain free slots to add yet more flights to the already overcrowded airspace in this region. This means that there are now a total of eight applications pending before the United States Department of Transportation (USDOT), requesting permission to add 58 extra flights at Kennedy and LaGuardia airports every day.

Counsel:  Queens County, David Nocenti, 718.286.2880

Vanguard Airlines, Inc. (High Density Rule, New York JFK)

OST-98-3550 | March 19, 1998

Reply of Vanguard Airlines

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The Department's legal authority to grant exemptions from the provisions of the High Density Rule is clear. The Borough of Queens, however, argues that because Congress originally directed DOT to issue a final rule regarding slot regulations no later than 90 days after August 1, 1995, DOT's authority to grant exemptions from the High Density Rule expired on November 29, 1995 with all previously granted exemptions expiring on that date as well. This argument is fatally flawed.

Without an allocation of slots for New York (JFK) service, Vanguard will not be able to spur price competition, to offer an affordable convenient New York alternative to the businessman and leisure traveler and to stimulate further growth in the Kansas City-New York (JFK) and Pittsburgh-New York (JFK) markets.

Counsel:  Vanguard and Stephen Lachter, 202-862-4321

Vanguard Airlines, Inc. (High Density Rule, New York JFK)

OST-98-3550 | April 30, 1998

Amendment No. 1 to Application for an Exemption

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Vanguard commenced service with two, and currently operates one round-trip flights between Kansas City-New York (JFK) and two round-trip flights between Pittsburgh-New York (JFK) outside of slot controlled hours. Vanguard has determined that without a much larger number of slots to serve the Kansas City-New York (JFK) market, Vanguard's ability to attract the volume of passengers required to make this market profitable is severely hampered. Thus, Vanguard has decided to withdraw its request for two JFK slots to serve Kansas City and is terminating nonstop Kansas City-New York (JFK) service as of May 12, 1998.

In the Pittsburgh-New York (JFK) market, however, Vanguard requires just three controlled JFK slots to enhance the profitability of its service proposal. Vanguard currently offers the only nonstop jet service between Pittsburgh and New York (JFK), but is unable to offer a mid-day departure and an early evening departure eastbound and an early evening departure westbound. In order to maximize its station efficiency at JFK where the operating costs exceed those at other airports in the Vanguard system, to connect with international carriers at JFK, and to construct useful connections beyond Pittsburgh, Vanguard requires a 3:55 p.m. arrival slot at JFK (to allow a mid-day Pittsburgh departure), a 7:05 p.m. arrival slot at JFK (to allow an evening Pittsburgh departure) and a 5:00 p.m. departure slot from JFK (to allow an evening arrival at Pittsburgh).

• Exhibit A:  Timetable
• Exhibit B:  Quick Reference Schedule

Counsel:  Stephen Lachter, 202-862-4321

Establishment of Slot Exemptions Proceedings 

By:  Bradley Mims

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