Delta Air Lines, Inc. ("Delta") hereby files this Answer in response to the Application of AirTran Airways, Inc. ("AirTran") for an exemption from the high density slot rules in effect at LaGuardia Airport. AirTran has asked the Department to create an additional twelve slots at LaGuardia and to award them free of charge to AirTran, so that AirTran can implement service between LaGuardia and several smaller cities that are not currently served on a nonstop or single-plane basis from New York.

Delta does not, in principle, oppose exemptions to qualified new entrants in "exceptional circumstances." However, the Department must exercise its exemption authority judiciously only in truly unique circumstances in order to avoid undermining the objectives of the high density rule. Delta's concerns about use of the exceptional circumstances criteria for the wholesale issuance of new slots was discussed in detail in Delta's May 12, 1997 Answer and June 12, 1997 Surreply in Docket OST-97-2442. Delta hereby adopts and incorporates those pleadings in support of this Answer.

LaGuardia is one of the most congested high density airports. There is no surplus capacity at LaGuardia from which to create these additional slots without a significant adverse impact on congestion at that airport. Indeed, as pointed out by the Borough of Queens in its Answer in Docket OST-97-2442, the FAA has become sufficiently concerned about the number of air traffic incidents in the

New York area that it has actually considered reducing the number of flights at New York airports. Queens Answer at 6. The high density rule was promulgated by the FAA based on safety and airport capacity considerations. Grant of the pending slot exemption applications would overload the flight operations at LaGuardia.

The Department has in place a market-based mechanism -- the buy-sell rule -- which provides a means for carriers (including AirTran) to obtain slots within the confines of the high density rule. It does not appear that AirTran had made any effort to take advantage of the buy-sell rule provisions. AirTran has offered no evidence showing its efforts to obtain slots at LaGuardia, which is a critical requirement for consideration of exception applications. AirTran claims that "the costs of slots" and times available "make the purchase or lease of existing slots not economically viable." Application at 4. AirTran further argues that it should be awarded a large block of slots so that it can "maximize station efficiency at LaGuardia" due to the high cost of maintaining operations there. Id. The cost of slots and airport facilities are borne by all operators seeking to add service at LaGuardia. Neither AirTran nor any other operator should be awarded a slot subsidy simply because it is unwilling pay these costs.