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OST-99-5475

The Community of Sioux City, Iowa

At one time, Sioux Gateway Airport had jet service to Chicago, Denver, Minneapolis, and St. Louis. Since the advent of deregulation in 1978, air service has deteriorated causing passenger enplanements to decrease while, nationally, total domestic passenger enplanements more than doubled. In 1984, Sioux City had non-stop service to eight markets. In 1998, Sioux City has non-stop service to only two hubs, Minneapolis and St. Louis. Only one carrier provides commercial jet service - Northwest Airlines to their hub in Minneapolis. Northwest Airlink (operated by Mesaba Airlines) provides commuter service to Minneapolis and Trans World Express (operated by Trans States Airlines) provides commuter service to St. Louis.  By awarding slots to Sioux City, the Department would acknowledge the direct link between air service and the economic development of small and medium communities. The Department should also consider survival of competition as a factor in granting slot exemptions.

Counsel:  C. Mauice Rawe for City of Sioux City

By:  Donald E. Willoughby, Manager to Government and Community Affairs

By:  Beverly A. Wharton, Senior Vice President

Community of Sioux City, Iowa

With the possibility of additional awards once again open, ACA urges the Department to systematically consider the desires of communities and air carriers for improved access to O'Hare. This should be accomplished by establishing a procedural schedule for the submission of applications for O'Hare exemption slots. Whatever the merits of the Sioux City application, it should not be viewed in a vacuum. Already one carrier and four other communities have filed applications for O'Hare exemption slots. Likewise, ACA will file to gain additional needed access for other communities.

Counsel:  Bagileo Silverberg, Robert Silverberg for Atlantic Coast, 202.944.3300

It should in this regard be noted that one of the reasons United opposed the award of slot exemptions to communities was the likelihood of that action being viewed by other communities as an invitation for seeking slots on their own and creating an environment in which political pressure would build to award slots not on the basis of marketplace economics but rather as a matter of political expediency. United's prediction now seem to be coming true with recent applications filed not only by Sioux City but also by Newport News/Hampton, Virginia, Huntsville, Alabama and Baton Rouge, Louisiana. And these applications are likely only the beginning. United has approached its independent commuter carriers with a request that they examine the feasibility of using some of the available exemption slots to offer commuter aircraft services between Sioux City and Chicago O'Hare. Unfortunately, given the shortage of slots at O'Hare, it does not appear at the present time that commuter service to a community such as Sioux City is feasible. In the event that the restriction on O'Hare slots is modified or eliminated to make more slots available, United is confident that nonstop commuter services to Sioux City could be restored.

By:  Kirkland & Ellis, Jeffrey Manley, 202.879.5161

By:  Barbara M. Sloniker, Director of Airport Marketing

Community of Sioux City, Iowa

As a follow-up to our recent meeting, I want to underscore our policy concerns over a recent DOT order awarding slot exemptions to particular cities or towns, rather than to the U.S. air carriers that propose to serve them. Order 99-3-12. Without questioning the outcome of these recent awards to Greenville/Spartanburg and Savannah, we address the broader policy implications underlying the Department's analytic approach in this area.

Counsel:  Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

The Community of Sioux City, Iowa

We ask that the Department accept this letter as a supplement to Sioux City's existing application and that it be filed in Docket # OST-99-5475. On January 26, 2000, Trans States Airlines, which operates as Trans World Express, announced that they were discontinuing service from Sioux City to St. Louis effective March 2, 2000. This leaves us with only one carrier, Northwest Airlines, serving one hub, Minneapolis. This recent change in our air service makes it even more critical that we gain access to Chicago O'Hare. We are aware that the Department has expressed reluctance to award further slot exemptions directly to communities or other non air carrier entities. We have no objection to the Department granting the necessary exemptions for implementation of Sioux City - O'Hare service directly to a willing carrier rather than to us. We are working with a carrier that is interested in our market and is willing to provide the service if we are able to secure slot exemptions. It is obvious that we also have the support of the community and our tri-state congressional delegation for this application. The purpose of this letter is to reinforce the urgency of our situation. Therefore, we ask the Department for expeditious relief by awarding four slot exemptions at O'Hare for Sioux City service to either the community or to an air carrier applicant. Granting such a small number of slot exemptions would have very little impact on the environment yet would have an enormous impact on the quality of air service in Siouxland.

By:  Airport Director, Michael A. Klein

Establishment of Slot Exemptions Proceedings 

By:  Bradley Mims

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