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OST-2003-15972 - Spirit Airlines - Slot Slide at Reagan Washington National
http://www.spiritair.com/
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Spirit Airlines, Inc. August 15, 2003 OST-03-15972 - DCA-Ft. Lauderdale Application for an Emergency Exemption | Word Spirit on August 12 obtained four 2100 slots in an FAA-administered lottery. While recognizing that it would be difficult to serve DCA using only DCA slots in the 2100 hour, Spirit understood it could restore valuable low-fare service to DCA if some of these slots could be moved into more favorable time periods. Such a move, or “slide” as it is referred to in the industry, can be approved by the Secretary under the provisions of § 41714(d) if the circumstances are exceptional. Enabling Spirit to restore service to DCA after a two-year hiatus and offer low-fare service in the FLL-DCA market qualifies as exceptional circumstances within the meaning of the statute and is consistent with DOT precedent in the award of DCA slot exemptions. The service will be operated with Stage 3-compliant aircraft. Application of Spirit Airlines, Inc., pursuant to 49 USC Section 41714(d), requesting the issuance of an exemption to permit it to reassign certain Ronald Reagan Washington Airport (Washington National or DCA) slots currently held by it to more desirable and commercially useable slot times. Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890 OST-03-15972 - Exemption - Slot Slide at Reagan Washington National August 20, 2003 ATA has no objection to a shortening of the answer period as requested by Spirit provided the Department of Transportation establishes August 22, 2003, as the due date for answers to ATA's slot reassignment application pending in Docket OST-2003-15968. The issues raised by Spirit's application are similar to those presented in ATA's application. The Department should undertake a contemporaneous review of all pending DCA slot reassignment applications to avoid piecemeal review and to ensure consistency in its decisions. Counsel: ATA and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com OST-03-15972 - Exemption - Slot Slide at Reagan Washington National August 20, 2003 ATA has no objection to a shortening of the answer period as requested by Spirit provided the Department of Transportation establishes August 22, 2003, as the due date for answers to ATA's slot reassignment application pending in Docket OST-2003-15968. The issues raised by Spirit's application are similar to those presented in ATA's application. The Department should undertake a contemporaneous review of all pending DCA slot reassignment applications to avoid piecemeal review and to ensure consistency in its decisions. Counsel: ATA and Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com August 21, 2003 Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
August 21, 2003 Colgan Air, Inc. hereby responds to ATA Airlines, Inc. comments on a request for a shortening of the answer period applicable to the pending applications for slot reassignments at Ronald Reagan Washington National Airport . Specifically, ATA stated that it supported a request by Spirit Airlines, Inc. that the answer period for the application for slot reassignments be shortened to August 22, 2003. Colgan supports a shortening of the answer period as requested by Spirit and ATA provided the Department of Transportation establishes August 22, 2003, as the due date for answers to Colgan’s slot reassignment application pending in Docket OST-2003-15968. Since the issues raised by the other requests are similar to those presented in Colgan’s application, DOT should undertake a review of all pending DCA slot reassignment applications. Counsel: Ungaretti Harris, Edward Faberman, 202-639-7501 August 21, 2003 Chautauqua Airlines, Inc. hereby responds to Spirit Airlines, Inc.'s request for a shortening of the answer period for its pending application for slot time reassignments at Ronald Reagan Washington National Airport ("DCA"). Chautauqua has also filed an application for "slot slides" at DCA. Chautauqua has no objection to a shorte g of the answer period, provided that the Department establishes a common shortened answer date for all pending DCA slot slides applications, cl ding Chautauqua's. The issues raised by Spirit's application are similar to those presented in Chautauqua's application and the pending applications of ATA and Colgan. The Department should undertake a contemporaneous review of all DCA slot reassignment applications to avoid piecemeal review and to ensure fair and uniform treatment. Counsel: Shaw Pittman, Robert Cohn, 202-663-8060
August 22, 2003 Comment and Clarification of Spirit On August 15, Spirit Airlines applied to the DOT for an exemption which would permit Spirit to reassign certain Ronald Reagan Washington National Airport slots currently held by it to more useable slot times so that Spirit might offer competitive service between DCA and Ft. Lauderdale. In reviewing the applications for retiming of slots filed by other carriers which obtained slots in the August 12 slot lottery, Spirit noted that at least one other carrier, American Trans Air, has requested slots in the 1400 hour. Spirit is hopeful that the Department will approve its slot slide application, consistent with its prior decisions permitting other carriers to retime their 2100 slots in order to offer a viable service at DCA. See, etc , Order 99-11-4, granting a similar request of Midwest Express. (“The Department acknowledges that a new entrant/limited incumbent may obtain a 2100 hour slot from the FAA and subsequently petition for an exemption to retime those slots to other time periods.”) Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890 August 25, 2003 OST-03-15972 - Exemption - Slot Slide at Reagan Washington National For over seven years America West has advocated the continuing need to increase opportunities for low-fare new entrant carriers to expand service options to consumers traveling to and from DCA. In response to the the efforts of America West and other new entrants, the Department, the FAA and Congress in the Wendell H. Ford Aviation Investment and Reform Act for the 21St Century ("Air 21") have taken steps such as the slot lottery and creation of limited new exemption slots under Air 21 to permit some new service by low-fare carriers at DCA. These modest steps have enabled the start up of service by new entrants including America West's very limited beyond perimeter service between DCA and its hubs at Phoenix and Las Vegas. This service has generated new low-fare, full-service options for travelers throughout America West's western network. However, because of America West's limited frequencies many consumers are forced to fly on higher fare incumbents that continue to dominate DCA. Indeed, despite limited new entry, this dominance has only increased as a result of the new code-share arrangements between United and USAirways and among Delta, Continental and Northwest. It is clear that much more needs to be done to promote vibrant competition at DCA. This need has been recognized by Congress in the 20 new exemption slots (12 beyond perimeter and 8 within perimeter) that will be created on enactment of Vision 100 - Century of Aviation Reauthorization Act. It is also reflected in the recent FAA "Disposition of Comments on the Lottery Procedures," 68 Fed. Reg. 50584 (August 21, 2003). In rejecting a proposal to abolish the new entrant preference in the slot lottery, the FAA commented on the difficulty new entrants have to "provide competitive alternatives on city-pairs already served by other carriers on a nonstop basis." Id. at 50585. Counsel: Baker Hostetler, Joanne Young, 202-861-1532 OST-03-15968 - ATA Airlines September 2, 2003 Consolidated Answer of American Airlines The Department should not abuse 49 USC 41714(d), which requires a finding of "exceptional" circumstances, by granting the applications at issue here. There is nothing "exceptional" about any of these requests, other than their brazen attempt to create some 13 new peak-hour operations at DCA. If the Department were to abolish all hourly slot limitations at DCA, American would not object. But unless every carrier has the same opportunity to move the slots in their DCA portfolios to any hour of the day, then no carrier should. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com OST-03-15972 - Exemption - Slot Slide at Reagan Washington National September 4, 2003 On August 15, Spirit Airlines applied to the Department for an exemption which would permit Spirit to "slide” three slots at National Airport from the 2100 hour to different times of the day. Spirit had received these slots at an FAA-sponsored lottery that was held on August 12. Certain other carriers that also obtained new slots at that lottery – American Trans Air, Colgan Air, and Chautauqua Airlines – have requested similar relief from the Department. Only one carrier, American Airlines, has opposed the relief requested by Spirit. American’s expression of frustration with the “unfairly” favorable treatment requested by Spirit is quite surprising. According to recent FAA slot counts, American holds 106 slots at DCA, making it the second largest slot holder at the airport. Spirit can only wish to attain the “disfavored” status of American, and simply cannot understand how its seeking to obtain even the smallest toe-hold at DCA could in any way be viewed as unfair or discriminatory. Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890 OST-03-15972 - Exemption - Slot Slide at Reagan Washington National September 9, 2003 Re: Correction to Document Filed August 22, 2003 On August 22, Spirit Airlines, Inc. filed a document entitled "Comment and Clarification of Spirit Airlines, Inc." in the above-referenced docket. On page 2 of that document, Spirit erroneously stated that the time it requests for DCA Slot 1536 is 0800. The correct hour is 0700, as shown on the attached corrected page of the document. Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890 Order 03-9-30 Issued and Served September 30, 2003 Order 2003-9-30, the Department grants the separate requests of ATA Airlines, Inc., Spirit Airlines, Inc. (Spirit), Colgan Air, Inc., and Chautauqua Airlines, Inc. to move the operation of slots at Ronald Reagan Washington National Airport from the 2100 hour (9:00 p.m.) to various alternative times. Insofar as their claim to "exceptional circumstances," all of the applicants share certain characteristics. All were given priority standing and subsequently awarded DCA slots in the recent FAA slot lottery due to the FAA's determination that each was a new entrant by the FAA's regulatory definitions. As such, even with the award of the 2 100 hour slots, Spirit, Colgan, and Chautauqua have argued they have little or no flexibility to adjust schedules to effectively market services since the 2100 hour slots alone do not permit the establishment of a viable pattern of service. We agree that 2 100 hour slots have little or no utility to a carrier that has no other slots. While other alternatives may exist that could enable these carriers to offer viable service, none are as practical or sure as the approach they have pursued here--that of seeking authority under section 41714(d) to move 2100 hour slots to other available times. Moreover, if a grant of that authority is denied here, carriers may face the choice of either operating their service at a loss or relinquishing the slots to FAA, at least temporarily frustrating the purpose for which the FAA's slot lottery was instituted. Precisely because the flexibility of these limited slot holders is so constrained, their circumstances are exceptional. By: Michael Reynolds OST-2003-15972 - Exemption - Slot Slide at Reagan Washington National February 3, 2006 On August 12, 2003, Spirit obtained four 2100 slots at Washington’s Reagan International Airport in an FAA-administered lottery. By Order 2003-9-30, Spirit received from the Department authority to “slide” the slots it had obtained into other time periods so that it could operate a viable pattern of service at DCA. At the time, Spirit indicated its plans to offer double-daily low fare service at Fort Lauderdale. In Order 2003-9-30, DOT found that permitting Spirit to serve DCA would be consistent with the public interest and was warranted by extraordinary circumstances. Spirit had no DCA slots at the time, and would have been unable to offer any commercially viable service without the relief it received from the Department. Since receiving those slots in the lottery process, Spirit has also obtained a pair of slots in the exemption process pursuant to Order 2004-4-2, which enabled Spirit to offer a single daily service between Washington and Detroit Metro Airport. Pursuant to this Motion, Spirit requests that the Department amend its Slot Slide Order so that Spirit can vary slightly the use of its Lottery Slots to accommodate seasonal fluctuations in demand in the markets it serves from DCA. Specifically, Spirit requests the flexibility to vary the use of a pair of its Lottery Slots so that it can fly from DCA to either Detroit or Fort Lauderdale, depending upon changes in market conditions. This flexibility would, for example, permit Spirit to add a flight in the Washington-Detroit market in the summer season, enabling it to offer double-daily service in times of peak demand, and would enable Spirit to use the Lottery Slots to operate double-daily service in the Fort Lauderdale-DCA market in the winter season, when demand for service to sunspot destinations may be higher. Spirit is among the smallest slotholders at DCA. Given that Spirit is serving DCA solely with exemption and lottery slots, Spirit, unlike many of it larger competitors, simply cannot alter its existing service pattern in the absence of DOT relief. This is an exceptional circumstance that warrants relief under the provisions of 49 USC § 41714(d). Enabling Spirit to adjust its services in this manner would benefit the public by giving Detroit-area passengers access to additional low fare service during peak travel times. The need for this service has increased since the termination of Independence Air’s low-fare service between Dulles and Detroit. Counsel: Garfinkle Wang, Anita Mosner, 703-294-5890 Order 2006-3-9 Issued and Served March 9, 2006 Order Granting an Amendment to DCA Lottery Slot Exemptions By this order, the Department is granting the request of Spirit Airlines, Inc. to amend the use of two of its lottery slot exemptions at Ronald Reagan Washington National Airport. To accommodate seasonal fluctuations in demand, Spirit may vary its use of a pair of its lottery slot exemptions for the purpose of providing nonstop service between either Detroit Metropolitan Airport or Fort Lauderdale/Hollywood International Airport and DCA. Spirit must also continue to use its remaining lottery slot exemptions to provide year-round, nonstop service between FLL and DCA. As we noted previously in Order 2003-9-30, to qualify for a “slide” in slot operating times, the Department must find exceptional circumstances and 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 Spirit’s amendment request satisfies the exceptional circumstances criteria contemplated by the Department in approving previous slot exemption requests. Spirit’s current service pattern at DCA, consisting of a total of three arrivals and three departures a day, is provided exclusively through the use of its slot exemptions and lottery slots. Spirit is among the smallest slotholders at DCA and is highly constrained in its ability to (internally) adjust the use of its slots in response to fluctuations in market demand. By: Michael Reynolds |
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