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OST-99-6468

Astral Aviation, Inc.   d/b/a Skyway Airlines

Upon the grant of this application Skyway will be able to offer twice weekday, nonstop, morning and afternoon service between Grand Rapids, Michigan and Washington -- a market which is experiencing significant growth but, nonetheless, lacks nonstop service to any Washington area airport (DCA, Washington Dulles or Baltimore-Washington International). Based on the exceptional circumstances supporting this request, Skyway urges this application be approved in time to commence pre-marketing activities in anticipation of a service initiation date of March 1, 2000.

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300

Astral Aviation, Inc. d/b/a Skyway Airlines

ACAA does not object to Skyway or any other commuter from holding and operating slots at Reagan National. If commuters were able to slide slots to an earlier time period without affecting the ability of other air carriers to operate at the earlier time period, ACAA would not be filing this opposition. However, § 41714(d), draws no distinction between commuter and air carrier slots. The statute provides that a slot slide cannot "increase the number of operations at Washington National Airport in any 1-hour period by more than 2 operations." Thus, if Skyway were able to move 4 commuter slots to two earlier hours, it would prevent a new entrant air carrier from moving slots to those same two hours. When looked at in combination with the Department of Transportation's recent grant to Midwest Express to move 4 slots, it brings the total to 8 slots that have been moved, or four hours that have been blocked from new entry. In addition, Skyway has a codeshare agreement with Midwest Express. Therefore, if the Department were to grant Skyway's application to slide slots, it would provide further benefits to this one carrier. Clearly, the Department must try to more equitably distribute Reagan National slots.

Counsel:  A.C.A., Edward Faberman, 202.639.7502

Astral Aviation, Inc. d/b/a Skyway Airlines

Counsel:  MWAA, Edward Faggen, 703.417.8615

Astral Aviation, Inc. d/b/a Skyway Airlines

Counsel:  Deputy Director Bureau of Aeronautics, William E. Gehman

Astral Aviation, Inc. d/b/a Skyway Airlines

Skyway is appreciative of the fact that MWAA does not object to its application for authority that will permit it to conduct nonstop Grand Rapids-DCA regional jet service. There is no question but that Skyway has demonstrated that exceptional circumstances support its request to commence first time, nonstop service between Grand Rapids, Michigan and the Nation's Capital. Indeed, even ACAA, which opposes the Skyway request because of the manner in which the DOT and FAA have permitted 2100 DCA slots to be temporarily assigned, is careful not to oppose the Skyway request on the merits. In short, neither MWAA nor ACAA have taken issue with the position of Skyway that its nonstop 328JET service between Grand Rapids and Washington, D.C. will be in the public interest, will be adequately supported by the traveling public and will be operationally and financially viable.

Counsel:  Silverberg Goldman, Robert Silverberg, 202.944.3300

Astral Aviation, Inc. d/b/a Skyway Airlines

By:  James A. Koslosky, A.A.E., Aeronautics Director

Astral Aviation, Inc. d/b/a Skyway Airlines

ACAA does not object to an award of slots based upon an open procedure that allows all interested parties to participate. That is not the case at Reagan National for Midwest Express and Skyway. Only carriers that were able to obtain the 2100 DCA slots can apply for authority to move those slots to earlier time periods. In this case, Skyway is competing against itself and Midwest Express - not against any other new entrant carrier. By awarding all available 2100 air carrier commuter slots, and allowing the slots to be moved to earlier times, the Department would prevent any other carrier (able to obtain 2100 slots) from moving the 2100 air carrier slots to earlier times during the day. While Skyway should be allowed to fully compete and serve Grand Rapids, all other new entrants should also be afforded the same opportunities. Other new entrants are blocked from taking part in this "allocation process." Order 99-11-4 and the refusal to reallocate slots provided to the largest air carrier slot holders departs from the Department's position on new entry and slams the door on new entry at Reagan National while providing Skyway with an opportunity not given to any other new entrant and increasing the domain of a few large carriers. Therefore, the Department should deny this Skyway request

Counsel:  ACA, Edward Faberman, 202.639.7502

Counsel:  ACA, Edward Faberman, 202.639.7502

Astral Aviation, Inc. d/b/a Skyway Airlines

Skyway's proposed slides will not result in a net increase in the total number of operations at Reagan National during any day. Rather, it will result in a decrease of four operations in the 9:00 p.m. period and net increases of two operations each in the 9:00 a.m. and 4:00 p.m. periods. No other carrier's slot holdings will 6e affected. And, because Skyway will be merely changing the timing of the four operations, there will be no net increase in noise impact on the communities surrounding the airport. Thus, the proposal meets all of the statutory requirements described above, including the concern that MWAA raised, i.e., that grant of the application would not result in an increase of more than two slots in any given scheduled hour, either individually or cumulatively, at Reagan National. We noted in Order 94-9-49, and more recently affirmed in Order 99-11-4, 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. Skyway currently holds only four Reagan National slots and operates none, and it has demonstrated a need for nonstop Washington-Grand Rapids service that it will implement through the slot slide authorized here. The exemptions will enable Skyway to inaugurate service between Reagan National and Grand Rapids and meet the increasing demand in that market. Thus, the applicability of our slot exemption authority is appropriate under the exceptional circumstances Skyway has presented.

By:  Bradley Mims

Astral Aviation, Inc. d/b/a Skyway Airlines

Astral Aviation, Inc. d/b/a Skyway Airlines respectfully requests the Department's approval for a change of timing of two slots held by Skyway and subsequently moved from 2100 to 1600 pursuant to Order 2000-2-33. Specifically, Skyway requests permission to move one afternoon Washington Reagan National Airport arrival and one afternoon DCA departure both of which are currently in the 1600 hour to the 1700 hour, effective October l, 2002.

By:  Astral Aviation, Christopher Svoboda, 414.570.2300

Astral Aviation, Inc. d/b/a Skyway Airlines

Order 2002-9-16, the Department grants the request of Astral Aviation, Inc. d/b/a Skyway Airlines (Skyway) to move the operation of two slots at Ronald Reagan Washington National Airport (Reagan National or DCA) from the 1600-hour (4:00 p.m) to the 1700-hour (5:00 p.m.), effective October 1, 2002.

By Order 2000-2-33, the Department found that Skyway had complied with all of the conditions specified in 49 U.S.C. §41714(d), which authorizes the Department to grant exemptions to air carriers operating or holding slots at Reagan National if such conditions are met. Under 49 U.S.C. §41714(d), the Department may, under circumstances that it finds to be exceptional, grant exemptions to an air carrier that holds or operates slots at Reagan National to enable it to slide the operating times of slots to different times. Such exemptions are very limited and must meet explicit conditions. Under the statute, the Department must find that grant of the authority would not (1) result in an increase in the total number of slots per day at Reagan National; (2) result in an increase in the total number of slots at Reagan National between the hours of 0700 through 2159; (3) increase the number of operations at Reagan National in any one-hour period by more than two operations; (4) result in the withdrawal or reduction of slots operated by an air carrier; and (5) result in a net increase in noise impact on surrounding communities resulting from changes in timing of the exempted operations. 

By: Read Van de Water

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