OST-98-3603
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OST-98-3603
Savannah, Georgia/Hilton Head, South Carolina - (High Density Rule, Chicago O'Hare)
OST-98-3603 | March 11, 1998
Application of The Community of Savannah, Georgia/Hilton Head
South Carolina
The true winners from a Department action to grant this limited exemption would be the consumers and business people of the two state region and those that obtain jobs as a result of the economic development stimulated by air service. Secretary Slater has often spoken of the linkage between transportation and economic growth. By granting this petition, the Department will generate true opportunities for economic growth in the two-state area. It is time for the Department to empower the Community of Savannah/Hilton Head and the two-state area with the ability to control its future economic growth.
Counsel: Ungaretti Harris, Edward Faberman, 202-778-4460
Communities of Savannah, Georgia/Hilton Head, South Carolina (Chicago O'Hare)
OST-98-3603 | March 25, 1998
Answer of Atlantic Coast Airlines
ACA hereby states for the record that it is impressed with the traffic generating capacity of Savannah/ Hilton Head. The area has significant tourist and other commercial assets so as to deserve a high level of service to points throughout the United States. It is unfortunate that service to the High Density Airports is not freely available. This being the case, ACA requests the Department to analyze the service needs of the communities and if found deserving, the Department should invite regional jet carriers to seek such authority or otherwise to announce the basis on which slots for Savannah/Hilton Head would be made available for regional jet service.
Counsel: Bagileo Silverberg, Robert Silverberg, 202-944-3300
Community of Savannah, Georgia/Hilton Head, South Carolina (Chicago O'Hare)
OST-98-3603 | March 26, 1998
The application also poses, but does not answer, important policy questions regarding the allocation of capacity at O'Hare. Despite its desire for service to O'Hare, Savannah has not shown that this desire cannot be satisfied with service to Midway Airport or articulated a basis on which the Department can, consistent with its obligation to ensure that capacity at O'Hare allocated to its highest and best use, grant the instant request.
Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130
Savannah, Georgia/Hilton Head, South Carolina (Chicago O'Hare)
OST-98-3603 | April 2, 1998
Response of The Community of Savannah/Hilton Head
The high density rule allows communities to hold and purchase slots. The parties agree that slots are a scarce resource. The allocation of these important resources should be based upon the public interest. While the Parties do not disagree that slots should be made available to carriers seeking to grow and compete, it is time for the Department to recognize that it can do more than simply add on to the total slot holdings of two of the most powerful and successful carriers in the world. At a time when the Department is adding to the strength of those carriers by increasing their slot holdings, allowing them to enter new international markets, and approving worldwide alliances, it should allow communities to become part of the international aviation system. While those communities can work with carriers to solidify service to most U.S. domestic markets, they need slots to obtain service to O'Hare. The March 11 petition sets forth a compelling case as to the significant benefits that would result if nonstop service commenced between Savannah/Hilton Head and O'Hare.
Counsel: Ungaretti Harris, Edward Faberman, 202-778-4460
Community of Savannah, Georgia/Hilton Head, South Carolina (High Density Rule, Chicago O'Hare)
OST-98-3603 | April 13, 1998
Motion for Leave to File and Reply of United Air Lines
To the extent that Savannah is pressing for a new form of exemption for services to a medium-sized community by carriers other than new entrants, no decision to award such exemptions should be made until an invitation has been extended to all eligible carriers. That was the procedure followed when the Department opened up § 41714(a) exemptions to include services to non-hubs as well as points eligible for EAS. Order 96-10-42. If the Department decides to create such a new, extra- statutory category of exemptions, United certainly has a list of new, medium-sized cities it would like to serve from O'Hare pursuant to such exemptions.
Counsel: United and Ginsburg Feldman, 202-637-9130
OST-98-3982 | OST-98-3603 | June 24, 1998
Application of Atlantic Coast Airlines
Atlantic Coast Airlines hereby requests it be exempted from Subparts K and S of Part 93 of the Federal Aviation Regulations to authorize it to conduct five operations at Chicago O'Hare International Airport in connection with nonstop Savannah/Hilton Head regional jet service, or in the alternative, to grant the application of the Communities of Savannah and Hilton Head in Docket OST-98-3606.
Answers are due July 9, 1998.
Counsel: Bagileo Silverberg, Robert Silverberg, 202.944.3300
Atlantic Coast Airlines and The Community of Savannah, Georgia/Hilton Head, South Carolina - (Exemption Nonstop Service to Chicago O'Hare)
OST-98-3982 | OST-98-3603 | July 1, 1998
Response of the Community of Savannah,
Georgia/Hilton Head, South Carolina in Support
As demonstrated by the applications, there is a significant market for Savannah/Hilton Head-O'Hare service. As the largest market without service, the Savannah/Hilton Head market will continue to grow, particularly with ACA's already successful Washington-Dulles service. The true winners from a Department action to grant this limited exemption would be the consumers and business people of the two-state region and those that obtain jobs as a result of the economic development stimulated by air service. The Administration has worked closely with communities to build economic growth. By granting this petition, the Department will generate true opportunities for economic growth in the two-state area. It is time for the Department to empower the Community of Savannah/Hilton Head and the two-state area with the ability to control its future economic growth. This can be accomplished by granting it or ACA an exemption from the high density slot regulations to allow four nonstop Savannah/Hilton Head-Chicago O'Hare roundtrips.
Counsel: Ungaretti Harris, Michelle Faust for Savannah Airport Commission
Atlantic Coast Airlines / The Community of Savannah, Georgia/Hilton Head, South Carolina - (Exemption to Permit Non-stop Service to Chicago O'Hare Airport)
OST-98-3982 | OST-98-3603 | July 9, 1998
Joint Answer of American Airlines, Inc. and American
Eagle Airlines, Inc.
The United Express and Savannah/Hilton Head applications should be denied. The Department should assign four of the remaining exemption slots at O'Hare to American Eagle, as requested in American Eagle's pending objections to Order 98-421. The Department should not allow United Express to masquerade as a "new entrant," nor should the Department award any slots to United Express to reinstate service to a well-served community. United Express has itself questioned the legality of awarding slots to a community rather than to the operating carrier.
Counsel: Carl Nelson, Jr., 202.496.5647
Contingent Answer of Exec Express II, Inc. d/b/a Aspen
Mountain Air
AMA urges that to the extent Atlantic Coast's application in Docket OST-98-3982 is considered contemporaneously with AMA's application in Docket OST-98-3671, Atlantic Coast's application should be denied.
Counsel: Boros Garofalo, Aaron Goerlich, 202.822.9070
Atlantic Coast Airlines / The Community of Savannah, Georgia/Hilton Head, South Carolina - (Exemption to Allow Non-Stop Service to Chicago O'Hare)
OST-98-3982 | OST-98-3603 | July 20, 1998
Motion for Leave to File and Consolidated Reply of Atlantic
Coast Airlines
While it is perfectly appropriate for Eagle to file its answer jointly with it parent, American Airlines, there is no regulatory or corporate reason to repeatedly refer to ACA as United Express. ACA is not a subsidiary of United Airlines. ACA is a publicly-traded company which is not owned, in whole or in part, by United Airlines. The financial results of ACA are not consolidated with those of United, as is the case with American and Eagle. The management of ACA is independent of that of United and is not under the control of United.
Attachment: Service Levels are High at High-Density Airport City-Pair Markets
Counsel: Bagileo Silverberg, Robert Silverberg, 202.944.3300
Atlantic Coast Airlines / The Community of Savannah, Georgia/Hilton Head, South Carolina (High Density Rule)
OST-98-3982 | OST-98-3603 | July 27, 1998
Motion of Savannah/Hilton Head to File Late
Reply and Motion to File Unauthorized Reply
Motion of Savannah/Hilton Head for Leave to
File and Consolidated Reply
By increasing flight options to Savannah/Hilton Head, the Department will be allowing O'Hare service to the largest market without direct service which also happens to be one of the fastest growing communities in the country -- Savannah/Hilton Head. Allowing this service in an expedited manner is in the public interest.
Counsel: Ungaretti Harris, Edward Faberman
| OST-98-3982 OST-98-3603 |
September 14, 1998 | Ex Parte Letter from Charles Hunnicutt to Senator John McCain |
Sioux City-O'Hare Slot Exemption |
| Re: Letter from Senator John McCain to
Secretary Rodney Slater |
|||
| Attachment: Letter in Support of Siouxland Chamber of Commerce |
| Order 98-9-24
OST-98-3603 |
Issued and Served September 24, 1998 | Order Granting in Part Petition
for Reconsideration and Deferring Applications for Slot Exemptions at Chicago
O'Hare Airport |
Exemptions from CFR Part 93 |
By this order the Department is amending its action in Order 98-4-21 by increasing from 16 to 18 the number of slot exemptions granted to Simmons Airlines, dlbla American Eagle (American Eagle), at Chicago O'Hare Airport as a means of facilitating the provision of nonstop regional jet services between O'Hare and Duluth, MN, Fayetteville, AR, Montgomery, AL, and Shreveport, LA. Specifically, consistent with the action we took in Order 98-4-21, we are permitting American Eagle to reassign to those markets 18 of the slots it is currently using to perform EAS operations between O'Hare and Bloomington, IL, Champaign, IL, and La Crosse, WI, and, pursuant to our authority under 49 U.S.C. section 41714(a), we will replenish those slots with an equal number of exemptions to assure the continued provision of the Essential Air Service (EAS) operations. Grant of the 18 exemptions is conditioned on their being used solely to provide the specified EAS operations and on American Eagle's implementation of an equal number of scheduled nonstop frequencies with regional jet aircraft between O'Hare and the cities designated above. We will authorize the exemptions for an indefinite period and will thus discontinue the interim (sixmonth) limitation previously imposed on the exemptions in Order 98-4-21. We are deferring action on pending applications for O'Hare slot exemptions by Exec Express II, d/b/a Aspen Mountain Air; the Community of Savannah/Hilton Head; and Atlantic Coast Airlines.
By: Charles Hunnicutt
| Order 99-3-12 OST-98-4604 OST-98-3603 OST-99-5130 OST-98-3671 |
Issued and Served March 16, 1999 |  Order Reserving Slot
Exemptions at Chicago O'Hare Airport |
High Density Rule, Chicago O'Hare Slots |  HTML |
By this order the Department is establishing an experimental allocation of Chicago O'Hare Airport slot exemptions to be deployed by selected communities for the purpose of assisting those communities in acquiring nonstop air service to O'Hare. Specifically, we are reserving a total of three O'Hare slot exemptions each for the communities of Greenville/Spartanburg, South Carolina, and Savannah, Georgia/Hilton Head, South Carolina, for the provision of such service. The service must be provided with Stage 3 jet aircraft, and is limited to a 179-day period. We find that this at lion is in the public interest.
By: Charles Hunnicutt
The Community of Savannah, Georgia/Hilton Head, South Carolina
| OST-98-3603 | April 22, 1999 | Application for an Exemption |
High Density Rule - Nonstop Service to Chicago O'Hare | HTML |
| Service List |
ACA had initiated four roundtrips per day in the Savannah/Hilton Head-Dulles market with regional jets. According to ACA's application, that service is successful. As a result of that service, Savannah/Hilton Head has become an important part of ACA's route system and its ability to add and promote service to Chicago has been enhanced. Service to Chicago will complement ACA's Washington service and will help solidify both markets. Moreover, by serving two of Savannah/Hilton Head's top markets, ACA's costs will be proportionately reduced, solidifying ACA's future as a viable competitor in this part of the country.
Counsel: Ungaretti Harris, Edward Faberman
Mobile Airport
Authority and Atlantic Coast Airlines
Charleston County Aviation Authority and Atlantic Coast Airlines
Community of Savannah/Hilton Head
| OST-99-5581 OST-99-5583 OST-98-3603 |
May 6, 1999 | Consolidated Answer of American Eagle Airlines |
High Density Rule - Chicago O'Hare |
As we pointed out in our application in OST-99-5587, American's network at Chicago (American Airlines and American Eagle) is at a significant slot disadvantage compared to United's network at Chicago (United Air Lines and its United Express affiliates, including Air Wisconsin, Great Lakes Airlines, Atlantic Coast, and Trans States Airlines). United's network has access to a total of 1,052 O'Hare slots, while American's network has access to 916, resulting in a United network advantage of 136 daily slots, or 68 daily roundtrip services. In the interest of fostering two-carrier hub competition at O'Hare, the Department should not grant any additional exemption slots to use by United-affiliated carriers at O'Hare until American and American Eagle have achieved slot parity
Counsel: American, Carl Nelson, 202-496-5647, carl_nelson@amrcorp.com
The Community of Savannah, Georgia/Hilton Head, South Carolina
| OST-98-3603 | June 21, 1999 | Motion of The Community of Savannah/Hilton Head to File Unauthorized Reply | High Density Rule - Chicago O'Hare |
| Supplemental Information in Support of Application |
As predicted by the community and ACA, the ACA O’Hare service has exceeded all
expectations. After approximately 40 days of the service, load factors have exceeded 70%. Considering that the service is not at the most convenient times (for example, no early morning service for Savannah/Hilton Head to O'Hare traffic, no late night returns to Savannah/Hilton Head, and only two roundtrips), those numbers are remarkable. Based upon this early data, there is no doubt that the three proposed roundtrips (originally four) justify an exemption for two additional O’Hare slots. Awarding these additional slots to Savannah/Hilton Head would provide the residents of the two-state area with the assurance that they can rely on the O’Hare service and will have multiple options to complete trips to Chicago and beyond. As acknowledged by the major carriers, three roundtrips is critical to creating an optimal market presence. An additional award of two slots would be consistent with actions taken by this Administration to work with local and state governments to promote tourism and economic growth. Certainly, considering the size and success of the market, the community should not be frozen at three slots while other communities -- with smaller markets -- are utilizing 4-6 slots.Counsel: Ungaretti Harris, Edward Faberman, 202-639-7500
Savannah, Georgia/Hilton Head, South Carolina
| OST-98-3603 | June 21, 1999 Corrected June 23, 1999 |
Re: Revised Page 2 of Supplemental Information in Support of Application | High Density Rule - Chicago O'Hare |
Counsel: Ungaretti Harris, Edward Faberman
The Community of Savannah, Georgia/Hilton Head South Carolina
| OST-98-3603 | June 30, 1999 | Answer of Atlantic Coast Airlines | High Density Rule - Chicago O'Hare |
Based on traditional patterns of passenger demand, and ACA aircraft scheduling practices, ACA has generally determined that three round trips per day each way is the minimum number of flights necessary to adequately serve a market. This is particularly true when the market involves a hub airport which has three, and perhaps more, flight "banks" and the flow and volume of connecting traffic is facilitated by flights operating at peak connection times. O’Hare is the nation’s premier hub airport offering unparalleled connections to the nation and the world. Therefore, the observations of Savannah/Hilton Head are fully shared by ACA regarding the need to create an "optimal market presence" in the Savannah/Hilton Head market which is not currently the case.
Savannah/Hilton Head is also correct in observing that passenger demand for ACA’s Savannah/Hilton Head-O’Hare service has been rewarding. Indeed, traffic to date has exceeded ACA’s initial projections. This result validates the conclusion of the Department that historic Savannah/Hilton Head demand for O’Hare service "is clearly sufficient to support nonstop jet service...." Specifically, ACA is experiencing an average Savannah/Hilton Head-O’Hare round trip load factor of approximately 75 percent for the period June 1 through June 21, 1999. In order to allow ACA to adequately accommodate this demonstrated demand, an additional two O’Hare slots are clearly warranted.
Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300
The Community of Savannah, Georgia/Hilton Head, South Carolina
| OST-98-3603 | July 7, 1999 | Motion for Leave to File an Otherwise Unauthorized Document and Response of The Community of Savannah/Hilton Head | High Density Rule - Chicago O'Hare |
In its Answer, ACA asks for the "immediate renewal of the slot exemption authority so to permit ACA to properly plan for the fall and winter schedule seasons." The Parties fully support ACA's proposal. When the Department awarded the slots to the community, it did so on a temporary trial basis. The three slots were awarded to the community for 179 days from April 4, 1999. In making the award, the Department stated, "we will establish a limited one-time test to enable us to observe the extent to which the availability of slot exemptions assists non-airline parties in addressing their transportation needs." As emphasized above, the "test" in Savannah/Hilton Head has been an overwhelming success, although the transportation needs of the community are three, not two, round trips. It is clear by every measure that the "test" award should be made permanent. As ACA and other carriers are putting together their fall and winter schedules, it is critical that the Department take action now and permanently award the requested slots. For business and civic parties, fall and winter business and leisure travel plans and marketing campaigns will soon be underway. An immediate award of slots will greatly aid in those efforts. A delay in finalizing a permanent award would impact many of those plans. When it issued the April Order, the Department took an important step to allow communities such as Savannah/Hilton Head to benefit from competitive airline service. As demonstrated by ACA's load factors, Savannah/Hilton Head-O'Hare service is thriving and has grown. Unfortunately, if its passengers are unable to utilize the flights, they will look elsewhere. The Department should acknowledge the success of the market and the 179-day test
Counsel: Ungaretti Harris, Michelle Faust, 202-639-7501
| Order 99-9-18 OST-98-3603 OST-99-5130 |
Issued September 28, 1999 Served September 28, 1999 |
Order | High Density Rule - Chicago O'Hare |
We have decided to extend the provisions of Order 99-3-12 until further notice. As we noted in authorizing this experiment, we want to maintain program flexibility regarding slot issues while Congress is addressing relevant legislative proposals. At this time, legislative proposals remain pending and it would therefore be premature to take permanent action on the experiment. Moreover, initial indications are that traffic response at both Savannah/Hilton Head and Greenville/Spartanburg has been very good. Thus, clearly it would not be in the public interest to terminate the authorization of the slot exemptions. We disagree with United's arguments concerning our legal authority to award slot exemptions to communities, as we explained in detail in Order 99-3-12. As we noted there, only 49 U.S.C. §41714(a), which does not apply to this case, limits the award of slot exemptions to air carriers.
We are not in a position to grant Savannah/Hilton Head's request for additional exemptions. We are continuing to adhere to the previously established limit of 60 slot exemptions at O'Hare based on an environmental assessment issued with Order 97-10-16. There are no available exemptions remaining against that limit. Moreover, in view of the strong and valid interest of numerous communities to gain access to O'Hare, our policy has been to encourage air carrier recipients of slot exemptions, especially those with ties to American Airlines or United Air Lines, to augment their slot exemptions through the market place or by operating outside the controlled hours.
FUTURE CHANGES
As the FAA slot regulation makes clear "slot(s) do not represent a property right but represent an operating privilege subject to absolute FAA control (and) slots may be withdrawn at any time to fulfill the Department's operating needs..." 14 CFR 93.223(a). This order should not be construed as conferring any ability to sell, trade, transfer, or convey the operating authorities granted by the subject exemptions.
By: Bradley Mims
| Order 99-12-26 OST-99-5587 OST-99-5532 OST-98-3603 |
Issued December 27, 1999 Served December 27, 1999 |
Order | Non-Stop Service Chicago O'Hare- Baton Rouge, LA and Huntsville, AL |
We will grant American Eagle's petition for reconsideration of Order 99-7-17 and, on reconsideration, we will increase its reallocation of O'Hare slot exemptions for service to Baton Rouge from two to four. We noted previously that we accepted American Eagle's marketplace assessment that Baton Rouge will support regional jet service to O'Hare based on historical traffic data for Baton Rouge and other cities within its catchment area.' American Eagle stated in a document filed May 12, 1999, where it discussed its decision to end its Chicago service at Shreveport and Montgomery, that "we fully expect demand to be far stronger at Baton Rouge and Huntsville." American Eagle has implemented its slot exemptions to serve Huntsville, augmenting those exemptions with one additional slot of its own, thus providing the market two daily round trips. With the newly available exemptions occasioned by Great Lakes' aforementioned return of unused slots, and given the fact that only two exemptions could be allocated earlier for this market, we find it in the public interest to authorize two additional exemptions for American Eagle's proposed service between Baton Rouge and O'Hare?
We also will reallocate two more slot exemptions for O'Hare-Savannah/Hilton Head service. The experimental slot exemptions that we awarded for that market in Order 99-3-12 are being implemented by ACA, with impressive results. ACA is operating two daily round trips with the combination of the three experimental slot exemptions plus one slot that it acquired on its own. The Savannah-O'Hare market has responded extremely well with load factors on the nonstop services averaging 73 percent over the first seven months (May through November). ACA informs us that at these traffic levels it is unable to accommodate all who seek to use its nonstop service. ACA and the community have thus made a compelling case that the market will support additional frequencies. Moreover, ACA has had a record of supplementing any slot exemptions though self-help measures to increase the number of frequencies it provides for designated O'Hare markets, which we consider a positive factor in making allocation determinations.
By: Bradley Mims
Community of Savannah, Georgia/Hilton Head, South Carolina
| OST-98-3603 | January 10, 2000 | Atlantic Coast Airlines Response to Order 99-12-26 | High Density Rule - Chicago O'Hare |
Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300
Establishment of Slot Exemptions Proceedings
| OST-95-277 OST-97-3086 OST-98-4647 OST-98-3603 OST-98-3982 OST-98-4424 OST-98-3550 OST-98-4346 OST-98-3603 OST-98-4604 OST-99-5153 OST-99-6731 OST-99-4979 OST-99-6683 OST-99-6547 OST-99-6654 OST-99-5532 OST-99-5533 OST-99-5475 OST-99-5614 OST-00-6957 OST-00-6996 OST-00-6970 OST-00-6838 OST-00-7175 OST-00-7176 OST-00-7177 OST-00-7178 OST-00-7179 OST-00-7180 OST-00-7181 OST-00-7182 |
Served April 14, 2000 | Notice | Slot Exemptions |
By: Bradley Mims
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